Risk Readiness Assessment (RRA)

Risk Readiness Assessment (RRA)

Risk Assessment in Raw Materials Supply Chains

Assessing social and environmental risks in raw material extraction and processing, and industry’s ability to appropriately manage such risks, remains a challenge for downstream companies due to the size and complexity of international supply chains. In addition to the difficulty of reaching suppliers beyond the first-tier supply chain levels, companies are confronted with a highly fragmented landscape of standards, initiatives and certifications related to responsible mining and minerals processing. Existing standards may focus on different issues and define varying performance and implementation requirements. Furthermore, standards cover different raw materials as well as types of mining operations.

In line with its mission and in partnership with technical experts and co-developers at The Dragonfly Initiative, the EICC and CFSI will offer tools to promote a common understanding of best practices and a means to consistently assess risks in the mineral supply chain:

  1. Standards Comparison: Compares over 50 standards commonly used in the materials value chain across approximately 25 issue areas, distilling them into a set of benchmarked norms representative of best risk management practice in each area.
  2. Risk Readiness Assessment (RRA): A self-assessment tool for minerals and metals producers and processors to assess and communicate their risk management practices and performance using the benchmarked norms established in the Standards Comparison.

The Standards Comparison and RRA are designed to cover all materials and mined commodities and apply to different types of businesses along the supply chain. They are intended to appeal to a broad audience, including downstream users, producers and voluntary initiative’s stakeholders. To learn more about how the Standards Comparison and RRA work, click here.

Rollout

The RRA will be implemented at an industry level by the CFSI and RRMI in the spring and early summer of 2017 to understand performance benchmarks and risks across 3TG and cobalt processors. The tool will then be made available to individual companies in the EICC, CFSI and beyond through a tiered pricing model that is to be determined. In addition, the Standards Comparison will be made available to our membership and selected stakeholders in the coming months.

Contact Information

For more information, please contact Bob Mitchell.