Comparing senior and middle manager perceptions of risk culture in a mining company

Abstract

Managers apply risk management when seeking balance between risk taking and reward. The existence of a mature risk culture, rather than the presence of risk management capability, confirms the value that risk management contributes to the achievement of organisational strategies. This study assessed differences in perceptions of risk culture maturity between 31 top and 225 senior mining managers, and among a corporate office and two groups of 10 mining facilities. Risk culture maturity perceptions were assessed by applying the North-West University Centre for Applied Risk Management Risk Culture Scale (UARM RCS-2018). Results from the UARM RCS-2018 assessment confirmed that the management of the mining company studied perceived it to have a mature risk culture. However, there were significant differences in perceptions of risk culture at a 5% probability between both the top and senior management levels, and between the corporate office and the two groups of mining facilities. Twenty-three percent of participating managers selected 'lack of accountability for managing risk' as a priority item to improve the inclusion of risk in decision-making. The outcome of the study could be useful to board and executive members, since it confirms that the company's investment in risk management capability enabled a risk management approach in support of risk-informed decision-making. In view of the lack of academic risk culture research available to the mining industry, this study offers introductory research that confirms risk management's value by verifying the existence of a mature risk culture rather than assessing risk management capability.