As stated earlier, ORE2_Tailings™ can define which risks are tolerable or intolerable in a clear, transparent and reproducible way. ORE2_Tailings defines intolerable risks as either tactical or strategic.
We discussed tactical and strategic planning for dam portfolios using ORE2_Tailings in our article “Tactical and Strategic Planning for Dam Portfolio Using ORE2_Tailings.”
In our reports, we consider risks of the considered portfolio to belong to three families:
- tolerable, meaning they are below the risk tolerance of the client. These risks should not receive any attention until all the other risks are under control.
- intolerable, but manageable (i.e. tactical), meaning they are above the client’s risk tolerance, but can be managed. These risks can be mitigated to a selected level of mitigation vs. available funds.
- intolerable and unmanageable (i.e. strategic), meaning these risks cannot be mitigated to a level below tolerance in a realistic manner. Management needs to decide whether to find ways to reduce them rationally or sustainably, or change the system in order to alter the risks. This decision requires following a risk-informed decision-making process.
In Chapter 10, we demonstrate how to deploy ORE2_Tailings during the mitigation design process in order to support decision-making. The process allows decisionmakers to transparently and rationally discuss what constitutes an attainable and sustainable level of mitigation. This is possible even for slopes/dams that are above the societal acceptability criteria and will remain above corporate tolerance despite rational, sustainable and well-balanced decisions related to risk mitigation.
Takeaway #8: Tactical and strategic risks
