Risk and Opportunity: Managing Risk for Development.
World Bank MOOC

Announced Tragedy

• The recent collapse of a mining dam in the Brazilian state of Minas Gerais is one of the biggest environmental disasters in the country’s history. Between 40-62m cubic metres of the water and sediment from iron ore extraction sluiced down a mountainside more than two weeks ago when the Fundão tailings dam failed at an open-cast mine operated by Samarco.
• The Guardian

Failure of the Company

• An environmental report produced by the environmental institute Instituto Prístino and commissioned in advance of the state’s 2013 decision to allow Samarco to increase the dam’s height raised concerns over its safety and recommended monitoring, a contingency plan and a “dam break analysis”.
• The Guardian.

Information as Prevention

• Angelica Peixoto and her husband knew there was a reservoir in the hills above the village where they built their house, but had no idea of its size, or potential danger. “If we had known this we wouldn’t have put the house there,” she said.
• The Gardian.

Human Face of Disaster

• Twelve people are dead and 11 still missing (including eight Samarco workers) in the “sea of mud” which oozed into one of Brazil’s most important rivers, the Rio Doce, killing fish and aquatic life hundreds of kilometres away and making the water hundreds of thousands of people depend on undrinkable.
• The Guardian.

consequences

• More than 500 people remain homeless, housed in hotels or with relatives. The community of Bento Rodrigues, closest to the mine, may never be habitable again.
• The Guardian

Consequences

• “My house does not exist any more,” said Angelica Peixoto, 50, a teacher from the small community of Paracatu which was also destroyed. Her family of five lost everything.
• The Guardian

what was missing?

• Risk management should be incorporated into strategic planning: Prioritizing the idea of risk management as a part of strategic planning.
• Use of proper communications about risks: Creating a more efficient level of communication of risks from top to bottom in the organization, and with the communities and governement.

Untitled Slide

• Accountabilities for risk management need to be defined: Make sure everyone knows who is responsible for their part.
• Use of comparative studies and maturity models: Use of standards to benchmark results
• Long-term vision and risk management within organization culture.
• NC State University. ERM Initiative

Danilo Sergio de Souza