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Risk Advisory services

Safety Analytics

To say that safety in the South African mining industry is an important issue, is an understatement.

It cuts a highly charged, politically sensitive swathe through every mining industry stakeholder group including, among others, the families of miners killed while at work, the government, trade unions, human resources and labour relations professionals, Boards, and shareholders.

Challenges mining companies face
Safety issues in South Africa are particularly complex given increasing cost constraints, the increasing depth at which mining operations take place, ageing facilities and a legacy of unsafe behaviour. Conventional mining methods often take place alongside heavily mechanised activities, further increasing the risk of health and safety incidents.

While significant improvements in mine safety have been made, the quest for zero-harm continues.

One thing is certain: A great deal more needs to be done to improve mining safety, if tougher mining laws are to be avoided. South Africa’s Mineral Resources Minister, went on record recently saying that government was “very concerned about the continued carnage” on South Africa’s mines, adding that South Africa may strengthen mining laws because companies are compromising worker safety as they accelerate production, amid rising commodity prices.

Ramping up production might be one business imperative for mines right now, but there are also other pressing business reasons to improve safety.

How does the Deloitte solution address the business issue?
Traditionally, the focus on improving safety in mines has been on:

  • Training
  • Awareness Campaigns / Competitions
  • Safety orientated process optimisation
  • Implementing monitoring systems that gather and report on basic safety information.

There is much more that can be learned from existing data, however, by studying the underlying causes of and contributing factors to workplace accidents - the how, where, when, and why they occur - and then applying that information to further reduce fatalities.

Deloitte does this by using advanced analytics, i.e. by applying two statistical techniques; Predictive Modelling and Data Mining to produce a mathematical model that effectively segments and predicts the likelihood of workplace accidents as well as indicating the likely severity of those events. Through the Advanced analytics process, we are also able to identify contributing factors. This methodology can assist in addressing mining safety from a different angle. By making use of data and techniques not previously applied in this industry, Advanced Analytics helps identify jobs, locations and processes that may carry a greater risk of injury or accident.

Safety Analytics Applied – How does it work?

Analytics_Progression_Diagram-US.ai
Benefits to your organisation
Advanced analytics puts company data to work by combining traditional data sources of risk information with non-traditional data sources. The discipline supports enterprise cost containment, profitability, and wellness strategies, along with efforts to lower the frequency and severity of workplace accidents. It also builds enterprise sustainability by improving safety, improving legal and regulatory compliance and promoting corporate responsibility.
Additional benefits include:

  • Increased productivity
  • Reduced fines as a result of improved compliance
  • Competitive advantage in recruiting and employee retention
  • Healthier employees and reduced absenteeism
  • Improved employee satisfaction and morale.

In summary, our view is that there is an opportunity to leverage safety related data (traditional and non-traditional data) more aggressively in order to generate insights and models that can positively contribute to the quest for zero-harm.

Contact
Derek Schraader
Tel: +27 (0)79 499 9046
Email: dschraader@deloitte.co.za

Tip-offs Anonymous

Challenges mining companies face
The risk of workplace fraud is almost certain to rise as economic growth slows and more employees experience financial difficulties. With retrenchments in the mining sector a reality, increased levels of financial crimes are to be expected.

Recent statistics by the Association of Certified Fraud Examiners (ACFE) revealed that on average 5% of revenue was being lost to fraud within large organisations today. Frauds are much more likely to be detected by tips than by any other method.
Effective prevention and detection processes are therefore needed to increase confidence and morale of all stakeholders. One of the key mechanisms of fraud detection is the implementation of an outsourced independent fraud hotline, such as Tip-offs Anonymous fraud and ethics hotline service.

How does the Deloitte solution address the business issue?
We currently enable an organisation’s stakeholders (employees, management, suppliers and customers) to report fraud, dishonesty and unethical behaviour in an anonymous and confidential manner without fear of recrimination. There are currently six mediums of communication that include a unique Freecall 0800 number, unique email address, post, website, facsimile and sms.

Benefits to your organisation
Our Deloitte Tip-offs Anonymous service:

  • Acts as a powerful practical deterrent to dishonesty and inappropriate behaviour in the work place;
  • Is designed to protect the assets, bottom line and reputation of organisations, both in the private or public sector;
  • Is a simple, low cost but strong practical deterrent to workplace dishonesty, inappropriate behaviour and unethical business practices;
  • Protects an organisation from negative publicity and adverse disclosure to the media;
  • Demonstrates an organisation’s commitment to promoting a culture of honesty, and integrity;
  • Is a tangible corporate governance initiative that all stakeholders can embrace to promote openness and transparency throughout your organisation;
  • Effectively highlights risk areas and weak internal control environments;
  • Promotes an organisation’s risk management strategy and profile as well as that of the internal audit function and audit committee.;
  • Can be used as a barometer to measure unethical behaviour;
  • Exposes undetected or unreported fraud, crime, non-compliance issues and collusion through anonymous calls;
  • Embraces a recommendation of the King Reports on Corporate Governance to “make available safe easily accessible channels to stakeholders”;
  • Enables an organisation to comply substantially with the provisions of the Protected Disclosures Act No 26 of 2000.
  • Enables organisations (listed and state owned companies) to comply with the Companies Act requirements to provide a facility for reporting to stakeholders.

Contact
Mimi le Roux
Tel: +27 (0)11 806 5456
Email: mleroux@deloitte.co.za

Exploring risk, extracting value

Risk Advisory provides tailored solutions to mining clients. We achieve this by combining a few key things:

  • A range of risk management services relevant to our clients
  • A global footprint to leverage industry experience and insights and
  • Professionals who are specialists in their respective fields, serving mining clients.

Challenges mining companies face
Risk management is as relevant to our clients as is growth and profitability. In fact, the concepts co-exist. In a world of unpredictable change and recession, managing costs extracting value from assurance is non-negotiable. At Deloitte, we embrace this value proposition.

How does the Deloitte solution address the business issue?
Simply put, we don’t deliver services based on capability (products), but deliver solutions that harness our capability toward realizing a client’s strategy. By way of example, our Internal Audit solution is not the traditional approach of assurance provision. We supplement the internal audit methodology with data analytics and forensic skills to highlight risk areas for audit. The result is assurance for the Board, but also areas to maximize savings and minimize costs for Buisness.

  • The Risk Advisory suite of services that can assist you include:
  • Internal Audit
  • Governance and Risk Management
  • Data Analytics
  • Technology Risk Advisory
  • IT Audit
  • Forensics
  • Security and Privacy Services
  • License Compliance and Asset Management Solutions
  • Legal
  • Tip Offs Anonymous

Benefits to your organisation
Deloitte risk management solutions are strategic. We focus on partnering business toward long term growth objectives and resultant increase in shareholder value. Whether it’s leveraging data to facilitate compliance, or mining data for trend analysis for cost reduction, Deloitte risk management solutions speak to a shareholder agenda.

Contact
Praveck Geeanpersadh
Tel: +27 (0)11 806 5437
Email: pgeeanpersadh@deloitte.co.za

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