GLD.

018
COUNTRY RISK MANAGEMENT

Brief description
Performance requirements before undertaking new activities in extreme or high governance risk countries.

Key contact
Annette McIlroy, Risk Manager Processes

Version: 2.0 (27 April 2010)

Revalidation date: 30 April 2011
BHP Billiton Group Level Document (printed copies are uncontrolled)
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COUNTRY RISK MANAGEMENT

1. New activity in extreme or high governance risk countries

Proposed new activities in extreme or high governance risk countries that expose a CSG, Minerals Exploration or
Marketing to a material risk issue, in particular where there is a reputation, legal or business conduct impact, must
be assessed to ensure compliance with legislation and a tolerable risk profile.

 Identify if the proposed activity is a new activity – that is one not contained in an existing approved
Authority Document. Particularly consider new trade agreements, new community investment programs,
interactions with government officials, opening a new representative office, obtaining new tenements,
licences or acreage for a new region, exiting an activity or a substantial change in project development
activities.
 Conduct a risk assessment including recording the assessment of tolerance to evaluate the risk profile.
Particularly consider the application of the BHP Billiton Code of Business Conduct and compliance with
legislation including anti-corruption and potential application of any UN, EU, Australian or US government
sanctions or trade embargos.
 Produce an Authority Document if both a new activity is undertaken in an extreme or high governance risk
country (Appendix 2) and a material risk issue is identified.
 Include in the Authority Document:
– proposed new activities;
– reasons for undertaking the new activities;
– material risk issues and the associated risk control action plan.
 Authorisation to proceed must follow Appendix 1.

Version: 2.0 (27 April 2010)

Revalidation date: 30 April 2011
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Appendix 1. Authorities

Endorse Approve Inform

10.9.1 Authority Document for an extreme governance risk country

GMC Owner (with line accountability) 

and Chief Legal Counsel 

CEO 

Board RAC 

10.9.2 Authority Document for a high governance risk country

CSG President 

or President Marketing 

or President Minerals Exploration 

and Chief Legal Counsel 

GMC Owner (with line accountability) 

CEO 

Version: 2.0 (27 April 2010)

Revalidation date: 30 April 2011
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Appendix 2. Country governance risk ratings 2009-2010

Country 2009 country risk rating Country 2009 country risk rating

Afghanistan Extreme Gabon High

Belarus Extreme Guatemala High
Chad Extreme Guinea-Bissau High
Congo (DRC) Extreme Haiti High
Cote d’Ivoire Extreme Honduras High
Guinea Extreme Kenya High
Iran Extreme Korea, North High
Iraq Extreme Kosovo High
Liberia Extreme Kyrgyzstan High
Myanmar/ Burma Extreme Laos High
Sierra Leone Extreme Lebanon High
Somalia Extreme Libya High
Sudan Extreme Mauritania High
Zimbabwe Extreme Nepal High
Algeria High Nicaragua High
Angola High Niger High
Azerbaijan High Nigeria High
Bangladesh High Pakistan High
Bolivia High Papua/New Guinea High
Burundi High Paraguay High
Cambodia High Russia High
Cameroon High Solomon Islands High
Central African Rep High Syria High
Comoros High Tajikistan High
Congo (not DRC) High Timor-Leste High
Cuba High Togo High
Djibouti High Turkmenistan High
Ecuador High Uganda High
Equatorial Guinea High Uzbekistan High
Eritrea High Venezuela High
Ethiopia High West Bank Gaza High
Fiji High Yemen High

Ratings based on World Bank Worldwide Governance Indicators 2009

Version: 2.0 (27 April 2010)

Revalidation date: 30 April 2011
BHP Billiton Group Level Document (printed copies are uncontrolled) Page 4 of 4