RISK AdvISoRy SeRvIceS MINING CREDENTIALS

Transcription

1 RISK Advisory Services MINING CREDENTIALS

2 2 Mining credentials BDO THERE IS AN INCREASING NUMBER OF MINING COMPANIES EXPLORING INVESTMENTS IN LOCAL AND EMERGING MARKETS TODAY, ATTRACTED BY QUALITY UNMINED RESERVES AND LOWER LABOUR COSTS.

3 Mining credentials BDO 3 Whether you are adopting Accounting Standards for Private Enterprises (ASPE),or managing changes in accounting standards, there are significant challenges and implications to consider. A key driver for future success depends on improving performance and operational efficiency, securing new supply, and complying with ever-changing regulatory, reporting and tax requirements. To reap the benefits, mining companies need the services of a trusted advisor with specialized, relevant local knowledge in the countries where they operate supported by a global network of professionals with mining expertise. At BDO, our business advisors and consultants bring country-specific advice to companies facing the challenge of efficiently administering multiple operations within and across varying social and business cultures. Enterprise risk management Calculated, carefully-determined risks are instrumental in helping an organization grow and flourish. However, business risks that stem from technological, environmental, political and commercial factors could threaten the viability and profitability of your business. A solid enterprise risk management (ERM) plan can help you take strategic, premeditated risks to reach new heights of success, while managing the numerous threats and risks that can impede organizational growth. It can help you maximize organizational risk opportunities, as well as mitigate and manage the risks inherent to your business and industry. Ultimately, this will help your organization remain operational, functional and viable during times of hardship. The BDO Risk Advisory Services (RAS) Team can work with you to think strategically, tactically and critically outside the box. We will help you create a unique and innovative ERM program that meets your business needs, while weaving a culture of risk understanding and awareness into your organizational fabric. Our considerable insight and experience across all aspects of the mining sector from investment vehicles to developers and associated support services help us understand the challenges our clients face. By doing so, we can deliver relevant, focused and practical advice that shows mining companies where they can improve productivity through efficient business process and cost control. Internal audit services Although challenging, growing businesses must move swiftly to take advantage of their opportunities, while ensuring that their internal processes and controls are secure and comply with strict regulatory environment rules to shareholders, lending institutions and legislature. Our internal audit services include: Strategic partnering and co-sourcing Construction audits Internal control over financial reporting assistance and testing Internal audit function set-up Quality assurance review

4 4 Mining credentials BDO Anti-corruption practices The hype surrounding anti-corruption practices in the industry has risen with the emergence of the Foreign Corrupt Practices Act in the United States and the Corruption of Foreign Public Officials Act in Canada. The rapid development of global regulations for corporate governance is prompting companies to focus on anti-corruption measures to safeguard their reputations and the interests of their shareholders. This is particularly relevant as your organization is likely to own and operate mines in foreign countries, while continuously needing to interact and deal with foreign officials to obtain licenses and permits. Our risk advisory team understands the rules that govern your business and are well-equipped to help you develop a compliance plan that will meet anti-corruption objectives, maximize business opportunities and minimize enterprise risks, while operating in foreign countries. There are many reasons why it is necessary for your business to ensure it does not engage in local or foreign corrupt practices. The potential for damage following the revelation of corruption practices is considerable and, whether large or small, your company is vulnerable. Our anti-corruption services at BDO include: Establishing and performing corruption exposure risk assessments Extending internal controls to a range of ethics and integrity controls based on the risk assessments Establishing appropriate internal controls in order to maintain accurate books and records Periodic evaluation of anti-corruption controls Developing a company-wide anti-corruption policy We can help you establish a sustainable framework focused on risk assessment and mitigation that will satisfy your compliance needs. This will help you bridge the gap between the corruption risk and implementing cost-effective controls to mitigate the risk. Using our proprietary methodologies and tools, our BDO team will advise and assist you throughout the entire process to help positively impact your corruption, legal, reputational, and financial risks. Technology, risk and security As technology continually changes, so do the underlying risks of these new advancements. A company s information technology (IT) is a strategic asset that must be managed effectively and efficiently. Our IT services include: Enterprise security Business continuity and disaster recovery IT controls design and evaluation Data management services IT governance IT assurance System implementation

5 Mining credentials BDO 5 Business process improvement In a very competitive market with a shortage of labour and everincreasing costs, our clients need to ensure that they are utilizing every opportunity to keep down expenses and meet deadlines. Our business process improvement services include: Operational performance assessment Business process and technology integration Business process improvement and reengineering Project management office reviews Financial analysis and modeling Benchmarking and best practice analysis Regulatory and compliance The need to remain up-to-date with the legal requirements that govern your organization and industry can be overwhelming and challenging. With a thorough understanding of the rules that govern your business, our RAS professionals are well-equipped to help you develop a compliance plan that meets your organizational goals, maximizes business opportunities and minimizes enterprise risks. New regulatory rules have heightened management s awareness regarding corporate governance. As an organization, you will be able to establish a sustainable framework that satisfies compliance needs and contributes to operational and process improvements. BDO can advise and assist you throughout the entire process from start to finish using our proprietary methodologies and tools. Accounting advisory services We have assisted many mining clients through the process of converting to International Financial Reporting Standards (IFRS). Whether you are adopting Accounting Standards for Private Enterprises (ASPE), or managing changes in accounting standards, there are significant challenges and implications to consider. No matter which standards you follow, they are likely to change. Our team of professionals can help you address these matters, including first-time adoption issues. Our mining experience Industry description National Gold and silver mining 125 Copper, nickel, lead, zinc mining 15 Peat, clay, sand, gravel, and stone mining 115 Support activities for mining 91 Total 345 In addition to the aforementioned clients, we have worked with over 50 exploration and mining companies. Our clients represent mines that are in the exploration and/or producing phases of the mining lifecycle.

6 6 Mining credentials BDO OUR TEAM Sam Khoury, CA IT, CPA, CITP - Partner skhoury@bdo.ca Direct: Sam has extensive years of assurance and risk advisory experience specializing in the implementation of change management projects, including IFRS conversions, enterprise risk management, and other corporate governance initiatives. He previously articled in assurance and advisory services where he managed a client portfolio of blue chip corporations, financial institutions and medium-sized public companies. His further expertise includes internal controls, project management (PMBOK), risk management, change management, business process re-engineering, and technology solutions alignment with business objectives. Carlo Mariglia, CA, CPA, CISA, CIA - Partner cmariglia@bdo.ca Direct: Carlo manages and supervises numerous Risk Advisory engagements across multiple industries. He has extensive experience in co-sourcing Internal Audit functions and ERM consulting. He has also played a key role assisting numerous Canadian public companies and other publicly-accountable enterprises in their transitions from Canadian GAAP to IFRS. He previously articled in assurance and business advisory services, managing various public company engagements, and later focused on evaluating internal controls over financial reporting, business process enhancement, IT audit, internal audit, and risk management. His further expertise includes corporate governance practices, project management framework and practices, implementing the Business Continuity Management Program under BS 25999, and establishing and maintaining an internal audit function in accordance with IIA standards.

7 Mining credentials BDO 7 OUR TEAM Pierre Taillefer, CA, CISA, CFE - Partner ptaillefer@bdo.ca Direct: ext Pierre leads the RAS practice in Montreal with 20 years of in-depth experience. He has been involved in various engagements covering service organization controls reports, the Sarbanes-Oxley Act of 2002 and Multilateral Instrument , investigation and anti-fraud programs, management of internal audit outsourcing engagements, outsourcing contract reviews, compliance mandates, and business process, internal controls, due diligence and security reviews. He has also worked with cash logistics, IT outsourcing (including applications and hardware) and broker-dealers. His further expertise includes business process re-engineering, technology solutions alignment with business objectives, and IT risk and controls. David Knott, CISA - Senior Manager dknott@bdo.ca Direct: David is responsible for the management and supervision of numerous information technology, internal controls, and IT security related engagements for the BDO Technology and Risk Services Practice. Prior to joining our firm, he provided IT security services in assurance and business advisory services in the technology risk management groups of two other leading firms, managing various information system services engagements for a wide range of clients. His further expertise includes information systems audit services, IT general controls assessments, payment card industry services, internal IT controls design and testing, ISO consulting services, IT forensic services, CEO and CFO certification services, ethical hacking services, disaster recovery and business continuity planning, and IT project management consulting.

8 Toronto Centre Office Royal Bank Plaza, South Tower 200 Bay Street, 33rd Floor Toronto ON M5J 2J8 BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. GB-MC-R.11.10