THE ROLE OF RISK MANAGEMENT SYSTEMS IN ENSURING THE SUSTAINABILITY OF MINING OPERATIONS

Abstract

This study aims to examine the effectiveness of risk management systems in reducing work accidents, environmental damage, and financial losses in the mining industry. Given the importance of worker safety and environmental sustainability in mining operations, this study adopts a qualitative and quantitative combination approach to evaluate the implementation of risk management systems in several mining companies operating in Indonesia. Quantitative data was collected through statistical analysis regarding the rate of work accidents, environmental damage, and financial losses suffered by companies during the study period. Meanwhile, qualitative data was obtained through interviews with managers and workers to identify their perceptions regarding the effectiveness of the risk management system implemented. The results show that the implementation of a structured and sustainable risk management system can significantly reduce the number of work accidents and environmental damage, as well as minimize the financial losses faced by companies. However, the study also identified several challenges in the implementation of this system, such as limitations in the use of monitoring technology and safety equipment that still need to be improved. This study provides recommendations for mining companies to improve training, the application of the latest technologies, and a more effective risk monitoring system to ensure safer and more environmentally friendly operational sustainability.