KPMG assists clients to develop robust risk mitigation methods by interpreting the underlying drivers of operational, strategic and global risks. This year, we have reviewed extensive sector intelligence to identify the key risks impacting the Australian mining industry in 2018.
The risk themes described echo global sentiment regarding ‘Environment’ and ‘Technology and Innovation’ risks being significant. The World Economic Forum Global Risk Report 2018 also lists environmental and technology-related risks as top 5 global risks.
The global focus on technology risks are further highlighted through the KPMG Top 10 Issues Facing Australia’s leaders in 2018 report which identified that ‘Digital and Innovation’ is the top issue facing Australia’s leaders closely followed by `Public Trust’. The risks to social licence to operate as an outcome of degraded public trust are viewed as increasing when compared with previous years.
Additional themes introduced this year include the risks surrounding the adoption of Artificial Intelligence (AI) and Machine Learning in addition to those relating to increasing expectations from a vocal and ethically conscious community.
These risks are outlined in more detail in the full report (PDF 528.2KB).
* When considering these recommendations, please note that KPMG does not deem any of these risks as more important than others although priority of focus will differ between organisations. The rating considers the potential velocity and impact of each risk for the mining industry as a whole in the year ahead.