Integrated Annual Review 2012 Annual Financial Report 2012 Mineral Resources and Mineral Reserves Regional overview  
 

3.2.2 Risk appetite and tolerance

Figure 3.5 indicates whether management are operating within the risk tolerance levels set for them by the Board. Tolerance levels are reviewed and reset every year as part of our annual risk management plan.

Figure 3.5: Risk performance (pre-unbundling)

  Risk area Risk appetite Tolerance level Targets C2009 C2010 C2011 C2012 x\√
OPTIMISING OUR OPERATIONS Safety Zero Harm Zero Harm FIFR2 – Zero 0.16 0.11 0.12 0.11 Tick
SIFR3 – 25% less 2.29 2.22 2.64 2.40 Tick
LTIFR4 – 25% less 3.91 4.39 4.69 5.161 Tick
DLIFR5 – 25% less 180 198 208  
Health Zero Harm Zero Harm

Less than 5%
0,1 mg/m3

4.3% 3.2% 1.2% 4.7% tick
All Machinery
< (110 dB(A))
5.9% 3.0% 0.9% 0.8%
Environment Zero Harm Zero – level 4
and 5 incidents
Zero Zero Zero Zero Zero
Gold delivery
5Moz/2015
Short-term NCE 20%
Long-term NCE 25%
 
95% compliance
 
 
NCE6 20%
 
3.58
20%
 
3.50
16%
 
3.49
25%
 
3.25
17%
 
 
GROWING GOLD FIELDS Capital
Projects
Project delivered on
time/budget as per
current schedule
 
7 – 10% overrun
 
 
South Deep
Chucapaca
Far Southeast
Arctic Platinum
tick
tick
 
tick
tick
tick
 
tick
tick
tick
tick
tick
tick
tick
tick
tick
Tick
Tick
Tick
Tick
Mergers and
Acquisitions
Proper assessment of
risk returns
commensurate with
the risk
IRR 5% – Near-mine
IRR 10% Greenfields
As per IRR7 On track On track On track On track Tick
Exploration Appropriate balance
between geological
potential and
political risk
Leaning towards greater
geological potential in
higher risk areas
As per GBAR8 On track On track On track On track Tick
SECURING OUR FUTURE Human
Resources
Pipeline of scarce and
critical skills
60% – successor
cover ratio for top
250 employees
60% 54% 50% 70% 100% Tick
Licence to
operate
Global leader in
sustainable gold mining
Full compliance with all
legal and community
commitments
Full compliance 100% 100% 100% 100% Tick
Ethics and
Corporate
Governance
Full compliance –
SOX and Substantial
compliance to King III
No material/
significant failures
Nil Nil Nil Nil Nil Tick

1 Including restricted work cases for Australia; 4.66 if work cases are excluded
2 Fatal Injury Frequency Rate
3 Serious Injury Frequency Rate
4 Lost Time Injury Frequency Rate
5 Days Lost Injury Frequency Rate
6 Notional Cash Expenditure
7 Internal Rate of Return
8 Global Business Area Rating system