• Conciseness
• Materiality

Key observations:

Fresnillo presents a thorough and transparent risk discussion which clearly articulates the principal risks and how these risks have been ascertained.

Initially the risk management framework is outlined in a diagrammatical format with explanations of the role each person plays. Fresnillo then goes onto outline the key risk management achievements from the year under ‘what we did in 2011’ which provides an insight into how the activities have benefitted the stakeholders. Fresnillo then moves on to identify ‘what we plan to do in 2012’ which allows the reader to understand the future focus areas of the business.

On the following spread, Fresnillo outlines the risk profile of the business and explains how the business has come to establish nine principal risks. These nine principal risks are outlined on a ‘risk heat map’ which plots impact against likelihood in order to identify the risk rating for each risk. The ensuing matrix reiterates the risk rating, the company’s risk appetite for each risk, the change in the risk from the prior year using an arrow system and a brief explanation as to why the risk profile has altered.