The Importance of Risk Management in the Extractive Sector for a Sustainable Economy

This study uses a qualitative descriptive analysis to demonstrate the importance of risk management in extractive enterprises, where overall sustainability is often profoundly dependent on cross-linked environmental, social, corporate and financial issues. Risk and sustainability have been well studied over the past few decades. However, there appear to be gaps in resolving the a priori and/or a posteriori drivers and outcomes of risk in the extractive industry (EI). Much of the research focus in EI sustainability has been on environmental factors in contrast; research in corporate sustainability has tended to focus on economic risk. In keeping with modern precepts of corporate social responsibility, this study considers four pillars of overall sustainability: (i) environmental, (ii) social, (iii) financial and (iv) economic.