Mining and Risk Breakfast – Guest Speaker Ian Hannam, Founder Hannam and Partners
Global environmental consultancy SLR and strategic risk management consultancy Strategia Worldwide Ltd hosted a joint breakfast seminar on Wednesday 25 January 2017, 8AM to 10AM at the Cavalry and Guards Club, London to discuss “helping companies and investors realise opportunities in complex environments”. It was attended by 91 invited guests from the mining, insurance, capital markets and risk industries.
Guest speaker, Ian Hannam – Founder Hannam and Partners, drew from his huge experience in the industry to speak from a Capital Markets perspective about the challenges and ‘lessons learned’ from investing in a ‘complex’ environment. In particular he focussed on the impact of non-technical ‘above ground’ risks resulting from poor corporate governance and political factors. The Strategia/SLR team followed up with a discussion, illustrated by a case study, about how a comprehensive approach can be used to manage these risks together with all other risks, to realise opportunities in these environments globally.
“I have learnt through the markets that below-ground risk can be catastrophic for projects; and the market has understood how to price this appropriately but above-the-ground risk has historically been under and over priced. Companies and investors need to understand these two risks together because they are inseparable and this is where Strategia’s and SLR’s expertise can add real value…” Ian Hannam
Ian also commented that in todays’ markets there isn’t the same level of investment available as in previous years therefore Companies should de-risk projects by starting small and engaging locally.
Sir Richard Shirreff and Iain Pickard from Strategia Worldwide, together with David Walker from SLR, then explained how a comprehensive approach to risk management, addressing technical, political, environmental, social, and regulatory risks, as well as security risks, can help companies and investors fully understand complex environments, assess risks, break down silos, identify gaps and understand the relationship between risks. This allows companies to realise opportunities and can provide an assurance ‘kite mark’ to investors. They used a recent case study from Cote D’Ivoire to illustrate this approach that addressed technical, political, environmental, social, and regulatory risks, as well as security risks to produce an integrated solution.
“Opportunity is the flip side of risk and the application of our model allows our clients to realise their business outcomes sooner, and provides an assurance ‘kite mark’ to investors… ” Sir Richard Shirreff
One comment from the floor which generated discussion concerned the threat posed by cyber attacks. Ian Hannam agreed that digitization is advancing fast – some mines already have driverless trucks!
Overall, the comments underlined there is a growing need within the industry to take a comprehensive approach to risk management for identifying all (above ground as well as in the ground) risks and to fully understand the interdependencies between them.
Strategia Worldwide Ltd brings together combined senior expertise from the military, political, diplomatic, law-enforcement, humanitarian, social development, strategic communications, cyber and insurance worlds and operates in the UK and overseas.
SLR Consulting deliver advice and support on a wide range of strategic and project-specific issues to a diverse and growing base of business, regulatory and government clients. They specialise in the oil and gas, mining and minerals, infrastructure, built environment, industry, and power sectors.
Formerly Chairman of Global Capital Markets at J.P. Morgan, Ian has worked on over 300 transactions in over 40 countries in a 30 year period. Ian’s capital markets experience includes transformational transactions for BHP Billiton, Xstrata, BT, SABMiller, Pakistan Telecom, Rio Tinto, Rosneft and HSBC. He built J.P. Morgan’s natural resources business into the No. 1 franchise in the sector and is responsible for introducing to the London market – and growing into leading blue chip stocks – several of the major diversified mining companies (BHP Billiton, Xstrata). Ian is a former Captain in the Territorial Army and has degrees from Imperial College (BSc Eng) and London Business School (MBA, MSc Econ). He is also a Chartered Civil Engineer (MICE, CEngl, FEANI).
Sir Richard Shirreff
Over 37 years experience as an international leader and commander rising to highest rank in British Army and NATO. Extensive experience of building unity of effort with different nations, governments, the humanitarian community and wide variety of other stakeholders in order to resolve complex problems. First hand understanding of the challenges of decision making under extreme political and media pressure, and proven record of leading dynamic change management makes him well placed to support corporate leaders in the development and operationalising of strategy to manage complex risks.
20 years in the British Army before leaving in 2003. Since then has forged a successful commercial career: former COO at Marsh UK, COO of a leading Lloyds broker, Change Director for Aon’s wholesale/specialty division, Ops Director of Aspen Re, Head of Financial Services at the 7th largest professional services firm in the UK and a Financial Conduct Authority ‘Skilled Person’ for risk and governance. Identified niche for risk mitigation and transfer consultancy in 2008. Successfully applied methodology with mining ops in Guinea. Fuses experience of campaign planning with relevant financial, insurance and commercial risk management experience.
David Walker is SLR’s global sector lead for Mining & Minerals. He has a broad background in engineering, geology, geotechnical engineering and hydrogeology, plus takes an integrated engineering and environmental approach to mining projects.
Most of his experience has been gained in the mining industry over the last 27 years. It covers a range of technical and project work of a geotechnical, hydrogeological, hydrological and tailings or mine waste nature, including a number of environmental engineering projects. David has excelled in forming part of multi-disciplinary teams, providing specialist inputs and/or a project management role for the development of projects. These range from pre-feasibility studies through to design and implementation projects. He has extensive experience of working in developing countries, especially in sub-Saharan Africa.