Risk Management and Developing Risk Framework | Report

Risk Management

Contents
Contents...........................................................................................................................................2
Overview of case..............................................................................................................................3
Identify stakeholders........................................................................................................................3
Risk management and developing risk framework..........................................................................4
CONCLUSION................................................................................................................................6

Overview of case
For this report, Rio Tinto is taken for consideration which is one of the largest Anglo Australian
mining companies in the world and has been running the business since 1873. Company has
expertise in producing and mining products like aluminium, iron ore, diamond, uranium, copper
etc. Organisation has the turnover of 40.522 billion dollars in 2018 and employees more than
47,000 people worldwide (Hopkin, 2018). Organisation has recently gone through structural
change in which five different teams been formed i.e., Aluminium, Energy and minerals, Copper
and diamonds, growth and innovation and at last iron ore to support the overall aim of Rio Tinto
which is fulfilment of stakeholders expectations from the company. Currently firm has been
using mixture of functional and staff structure so that company could become more flexible and
sustainable in coming future.
Rio Tinto mission is to maximise the return of shareholders through leveraging their expertise to
others by procuring raw materials in low cost and high quality which cannot be offer by other
competitors in the market. Company runs on four different business strategies i.e., choosing
portfolios which will work as a long term assets for company by reshaping their operations in
more productive way (Hubbard, 2020). Second is to maintain sustainable performance by
changing operations according to internal and external environment. Third is partnering with the
customers and NGO’s which believes sustainable performance in their working operations
through reducing carbon footprint from the production process. Last is a person, which means
provide proper training and development sessions to employee’s so that they can maintain and
enhance their efficiency to a certain level. Company’s objective is to expand and create new
market on a continuous basis. Rio Tinto has been successful in the market just become they have
eliminated mostly all the gaps in the risk principles which assist them in performing better in the
market. For instance, one of the principle is integration of operations, so as mentioned above,
company has integrated their all operations in to five different aspects so that they can focus on
their core competencies instead of focusing on those in which they are not good at or does not
have proper skills.
Identify stakeholders
Stakeholders refer to individual or group of people who has invested their time or money in the
company and has specific amount of share in their earnings. Internal stakeholders refers to those