Can we stop misrepresenting reality to the public?
May 8th, 2013
We gave a presentation in Toronto. We were at the CIM 2013 conference and the topic was Can we stop misrepresenting reality to the public? The discussion was of course set in the risks related to mining and extractions.
Summary of the main points
The main points made are summarized below. You will not:
- manage (your) capital if you do not understand risks.
- be able to make proper decisions if you do not understand risks and finally,
- able to operate if people do not believe, trust and understand you and your risks.
Stop misrepresenting reality to the public
- You will miss opportunities and blindly expose yourself to risks if you do not understand risks.
- If you understand your risks you can go and see your bankers with better indicators than the sad, obsolete and misleading NPV.
- With better understanding of risks you can beat insurance denial problems and come up with win-win solutions either with your insurer, or with you key contractual counterparts.
Sadly, the recent collapse of the nine-storey Rana Plaza factory in Dhaka, Bangladesh, one of the worse industrial disaster in the world since the 1984 Bhopal gas explosion, confirms the above.
Tagged with: Acceptability, Analysis, assessment, Bangladesh, Bhopal, crises, decision, development, economic, Financial, management, NPV, operational, Optimum Risk Estimates, ORE, projects, Rana Plaza factory, risk, Risk Management, success, sustainability, tolerability
Category: Consequences, Hazard, Optimum Risk Estimates, Probabilities, Probability Impact Graphs, Risk analysis, Risk management, Tolerance/Acceptability