Reference no: EM132811433

Case Study

You are a member of senior management of a large local company operating in the mining sector named DigPaMore Company. Your company has operations in 30 different locations, some of which are nestled in the mountains.

You are aware that there have been protests from environmental groups in several areas regarding your mining operations. There have also been demonstrations about the impact of operations on local communities. Your company has a risk oversight committee, an audit committee, and a reasonably well-developed system of internal control. However, the board has decided that perhaps it should form a new committee, a" Health and Safety Committee", which will deal with Health and Safety issues. Accordingly, the board has members of the senior management to briefing paper which summarizes the main risks facing the business at present, and the relative importance of these risks to the business, to highlight where the primary exposures are likely to be. 

1. Identify at least 3 risks or factors and include a short explanation each affecting the business that will convince the board of directors to make a working committee specific on Health and Safety.
2. Is it beneficial for the company to appoint a member of the board of director as primary lead for Health and safety, knowing also that a Health and Safety Committee is not specifically mentioned in the SEC Code of Corporate Governance Code Recommendations, Why or Why not?