Barriers and Incentives: The Application of Comprehensive Risk Management in the Us Underground Coal Mining Industry

"The International Organization of Standards defines risk as “the effect of uncertainties on achieving objectives (15).” In mining, many uncertainties can influence the outcome of personal or professional objectives and are often difficult to predict. Risk management, the minimization and control of adverse effects from exposure to identified risks, is a well-established concept that can summarized as “being smart about taking chances” (12). Risk management now consists of management processes unique to numerous organizations across many industries, as varying sectors encounter a variety of needs, including the analysis and mitigation of risks related to physical security, product liability, information security, various forms of insurance, regulatory compliance, and workplace safety (12). The reoccurrence of multiple fatality events in the US mining industry, especially the underground coal sector, suggests an opportunity for improved methods of major safety hazard identification, assessment, and mitigation. A risk management approach would include ready identification and mitigation of these risks, inclusive stakeholder engagement, and rapid integration. While many solutions to reducing the risk of mine disasters have been proposed including stricter regulation and improved technology, a comprehensive risk management approach has yet to be fully integrated in the US mining industry. In December of 2006, R. Larry Grayson of the National Mining Association’s Mine Safety Technology and Training Commission called for “a new paradigm for ensuring safety in underground coal mines, one that focuses on systematic and comprehensive risk management as the foundation from which all life-safety efforts emanate (7).” A risk management approach has already been implemented with success in Australia’s minerals industry as part of a transition during the mid-1990s from a prescriptive based health and safety attitude to a more proactive, duty-of care [risk-based] philosophy (13, 16, 17).FUNDAMENTAL ELEMENTS OF RISK MANAGEMENT TECHNIQUES The fundamental components of a comprehensive risk assessment/management program are well-established within the realm of mining health and safety. Figure 1 depicts the elements of a typical mining hazard management framework. The first step in any safety-based risk management system is to identify and assess hazards by their location, nature, and magnitude within a mine. Next, a decision is made about choosing to eliminate, mitigate, or tolerate each hazard. Ideally, a hazard will be eliminated during the design stages of mining, though dynamic mining conditions often require continuous improvement and reevaluation of existing hazard controls. If elimination is not possible, hazard mitigation actions can consist of methods, rules, equipment, competencies, or other mechanisms. If a hazard is simply tolerated, as many inherent mining hazards must be, then specialized administrative controls must be utilized to minimize losses. During this process, the performance of each action is monitored and modified as needed (13)."