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Annual report suite 2012

Our approach to risk management and identifying material issues

Risk analysis has been and continues to be a key component in building and executing our business strategy, including our sustainability strategy.

Risk identification, assessment and management are considered at every step in the business planning process, from setting forth our business strategy, expectations and performance targets; developing production and service strategies; planning and scheduling work; through to task execution.

IR Our key risks and uncertainties are described under Identifying and addressing our material issues, along with mitigation strategies and a summary of progress against these risks.

We understand, however, that mere analysis of our risks is not sufficient, and that we need to understand the positions and concerns of our stakeholders in determining those issues that are material to the business. A risk may or may not be a material issue identified by the business; however it is one that influences or makes a difference to the stakeholder.

We adopted a three-stage process in determining our material issues:

Three-stage process in determining our material issues

Material issues

Employee safety and health, in particular mine fatalities associated with deep-level underground mining, as well as legacy health issues; the threat of individual claims or class action lawsuits.
See Ensuring safety and health and
Health and well-being.
Access to adequate energy and water supply.
See Addressing energy security and climate
and Responsible custodianship of water
and land
Impact of climate change on our business, our regulatory and physical environments and communities.
See Addressing energy security and climate
Environmental permitting, potential water and air pollution and competing demands for land use.
See Responsible custodianship of water and
and Cyanide and waste management.
Delivery on production and growth targets, including the introduction of new technologies and mitigating skills shortages.

IR See our Annual Integrated report and

FS our Annual Financial Statements.

Rising resource nationalism and potential conflict with government (including imposition of royalties, taxes, levies, mandated beneficiation and state ownership of resources).
See Adding value and Delivering sustainable
community benefits
Global market dynamics – recession, gold price, R/$ volatility, ability to raise capital, as well as inflationary cost pressures, especially rising labour expectations and costs.
Heightened community and government expectations; in some countries ASM; labour relations and the threat of unlawful industrial action.
See Adding value, Delivering sustainable
community benefits
and Addressing artisanal
and small-scale mining
Upholding fundamental human rights and support for Responsible Gold.
See Respecting human rights, Securing
our people and our assets
Responsible Gold.
Ensuring consistency in policy, approach and management of our supply chain.
See Managing our supply chain and
Responsible Gold.