Security Risk Management Case Study Example | Topics and Well Written Essays - 3500 words

Security Risk Management - Case Study Example In this essay, I am going to highlight a successful Risk Management project undertaken by us in the Kumtor Operating Company, a prime value asset and gold mine of Kyrgyzstan. The company, due to its valuable product and huge future potential, was fraught with many risk factors. External ones included rising Islamic militancy and vulnerability due to close proximity of US forces fighting was against terror at Bishkek. On the other hand, internal risk factors included security of the gold production and storage facilities, corruption, lack of insurance against loss and many such mitigating factors. Our role as security managers was to prepare loss prevention techniques after applying critical risk assessment theories, and using the relevant ones to achieve the aim. Risk Management in our context was to include both external and internal aspects of Kumtor Operating Company. Gold mining in a developing country is always full of many intangible risks owing to a high value product. Unless the management takes a proactive stance in this regards, the losses to the company from the within itself can be monumental. Adding the external dimensions make the costs of losses absolutely prohibitive for the company. Hence, in this essay I have discussed how each aspect of risk was appreciated correctly and resolved after due consideration of all associated factors. The four strategies of Risk Avoidance, Risk Reduction, Risk Transfer and Risk Retention were applied to each existing risk factor after due deliberations, and a detailed Risk Management and loss prevention plan was worked out, discussed with the authorities and implemented after convincing the top bosses of its rationale and effectiveness for allocation of necessary budget. A situation exists today where the losses due to management of mining process have reduced unbelievably thereby directly benefiting t he company both financially and security wise. The loss prevention program thus necessitated to first bring out the specific risk factors relevant in our context. While most such risks could have been dealt with from within the resources, a certain amount of external help would be required sooner or later. Further, after assessing the risks, the most important task was to classify them accurately into four types of risk management strategies. Optimum classification would ensure that the future action plan would be economically most suitable for the company and beneficial in the long run. While some risks can be avoided and reduced, some inherent risks may have to be retained due to adverse tilt of cost vs. benefit analysis. At the same time, some risks would be too heavy to bear and would need to be transferred to an insuring agency. Hence, we now commenced our ground work for loss prevention plan on a war footing. (Risk Management strategies) Kumtor Operating Company Kyrgyzstan is an ex-soviet satellite state that became independent in 1992 and is now called the Kyrgyz Republic. The Kyrgyz Republic is geographically bordered to the North, North West by Kazakhstan, to the South West