Integrated Operational Risk Management (IORM)

Our approach to risk management across all sites and functions is based on a three-pillar approach covering financial, project and operational risk. In 2002, WMC developed and piloted a new operations risk management process. This Integrated Operational Risk Management (IORM) process assists WMC meet the risk management needs of the organisation.

During the past two years, the IORM program has been applied at all of WMC's operations. Based on petroleum industry risk management methodologies, the IORM program yields a comprehensive risk register that ranks all operational risks according to their potential to:

1. cause serious physical injury to employees and contractors;
2. negatively impact the environment; and
3. cause interruption to the operations.

The IORM program includes a risk register that identifies and highlights the critical controls for substantive risks and provides assurance that risks are being effectively controlled. Annual site business plans include capital projects and programs aimed at eliminating or reducing the site's major risks.

The IORM program also allows comparative ranking of risks across all WMC sites. This provides the ability to ensure that resources are being applied appropriately and proportionately across the WMC Group to best manage operational risks from a group perspective.

The IORM process enables WMC to demonstrate effective due diligence and good corporate governance through the assurance reporting process, which requires the communication of significant risk issues through the Executive Committee and the Board.