ERM Colloquium Session - Risk Management at Cameco. Forward-looking Statement

Transcription

1 ERM Colloquium Session - Risk Management at Cameco Brett Welder, P. Eng., EP(EMSLA) Manager, SHEQ Audit April 10, 2013 Presentation to the 2013 AAC Conference Forward-looking Statement Statements made in this presentation include statements and information about our expectations for the future. These may include statements regarding our strategy, plans and future performance, or other things that have not yet taken place. These statements are considered forward-looking information or forward-looking statements under Canadian and U.S. securities laws. They represent our current views, and can change significantly. They are based upon a number of material assumptions, which may prove to be incorrect. Actual results and events may be significantly different from what we currently expect, because of the risks associated with our business. We recommend that you review our current annual and any subsequent quarterly management s discussion and analysis (MD&A) for more information about these assumptions and risks. You should also review our current annual information form, which includes a discussion of other material risks that could cause actual results to differ significantly from our current expectations. Forward-looking information is designed to help you understand our current views, and may not be appropriate for other purposes. We will not necessarily update this information unless we are required to by securities laws. Slide 2 Presentation Name 1

2 Our Vision Cameco will be a dominant nuclear energy company producing uranium fuel and generating clean electricity. 3 Introduction to Cameco One of the world s largest uranium producers ~14% of world production Canada, the US and Kazakhstan 465 million lbs of proven and probable reserves Refining, conversion and fuel fabrication operations Ontario and the UK (through contract) Exploration projects Canada, US, Australia, Central Asia and South America 4 2

3 Nuclear Fuel Process 5 RMS Reporting Structure Committees of the Board (SHE, Audit, NCGR) Cameco Corporation Operations Marketing & Business Development Governance & Law Finance Corporate services Risk Management Services Legal Department SHEQ Audit Risk Management Security Business Continuity and Ethics Internal Audit 6 3

4 Risk Management Services Our vision: To optimize risk management to drive success Assurance and advisory Assurance and advisory BCP & Ethics Hotline Internal Audit Security SHEQ Audit ERM Establish tools, advice and support Establish tools and assess performance Slide 7 ERM Program An enterprise risk is any risk with the potential to significantly impact the achievement of the corporate objectives or strategic plan Enterprise Risk Management: Assists in the identification, assessment and reporting of risks of corporate significance Increases awareness of risks Integrates identified risk results into other business processes Includes all Cameco activities and locations Slide 8 4

5 ERM Responsibilities Annual risk review Top and emerging risk voting and reporting Quarterly reporting: Management committee and executive Board of directors Nominating corporate governance and risk (NCGR) committee of the board ERM training and coaching Risk related projects and management requests Slide 9 Risk Documents Risk policy A high-level directive applicable to all of Cameco, covering all risk impacting our four measures of success. Outlines our risk management principles and the roles and responsibilities of key stakeholders within the company. The goal is to ensure that an overall risk management process is developed, communicated, and implemented. Risk Standard Describes a common methodology to conduct risk assessments thereby making it easier to integrate site and business unit risk assessments into a organization-wide risk management approach. Outlines identification, analysis, evaluation, treatment, monitoring, and communication of risk. Based on ISO Slide 10 5

6 Risk Matrix Frequency Consequences 5 Very Likely Quite Likely Somewhat Likely Unlikely Extremely Unlikely Measures of Success Safe, Healthy and Rewarding Workplace Clean Environment Financial Performance Supportive Communities 1 Insignificant 2 Minor 4 Moderate 8 - Major 12- Catastrophic Slide 11 Incorporating Ownership ERM Residual Risk Range < 4 Management Response ERM Risk: senior vice-president accountable and risk reported to Board. ERM Risk: vice-president accountable and risk reported to senior vice-president. ERM Risk: general manager/corporate director accountable and risk reported to vice-president. Appropriate business unit manager accountable and risk reported to general manager/corporate director. Controls assessed and monitored through normal management systems. Tolerable risk Slide 12 6

7 Challenges Managing detail level of the assessment process (granular vs. enterprise) Consistent application of frequency & consequence criteria across disparate departments and stakeholders Supporting risk informed decision-making while not overtaxing risk owners Developing a culture where staff voluntarily communicate their potential risks for evaluation without fear of reprisal Slide 13 A Successful ERM Delivery Must Speak management s language Focus on objectives/priorities Integrate into routine client processes Be practical Help management allocate finite resources Enhance performance Slide 14 7

8 SHEQ Audit Mandate Provide an independent and objective assessment of the SHEQ management systems and compliance at all Cameco operations and projects and for key service providers Develop and maintain the Cameco management system audit program (CAM-MSAP) Identify areas of nonconformance, opportunities for improvement and best practices 15 Management System Audit Program (MSAP) Outlines requirements for auditing Cameco operations, projects, select joint ventures and key service providers Based on international requirements for management system auditing Meets the ongoing requirements and principles of the SHEQ policy Set minimum requirements for audits Reviewed internally and by a third party 16 8

9 SHEQ Audit Activities SHEQ Audit oversight Develop annual schedule Coordinate site compliance audits Conduct audits, investigations and special requests Monitor corrective actions Report on SHEQ audit activities 17 Types of Audits SHEQ management system audits Compliance audits Baseline audits Internal audits for pre-registration assessment or continuing certification/registration Joint audits with IA ERM control validation Key service provider audits Supplier audits 18 9

10 ERM and Audit 19 ERM and Audit Risk based auditing of SHEQ related significant risks Validation of controls for SHEQ risks Audits of the risk assessment process Report to management and the board of directors 20 10

11 ERM and Audit Audit reporting Site, senior and RMS management Audit findings and recommendations Risk ranked Follow-up and closure Report back to the ERM group Update risk profiles and controls Identification of new risks or controls Reassessment of risks 21 Discussion Thank You! 11