The LicenseSecure™ methodology
LicenseSecure™ is Critical Resource’s unique assessment model which benchmarks the socio-political ‘license to operate’ of individual assets. It provides a simple means to assess and communicate asset-level risk, synthesising intelligence from multiple sources and indicators.
‘LICENSE TO OPERATE’
The ‘license to operate’ is an intangible social contract that derives from a company’s ability to work with stakeholders, including communities and governments, to demonstrate that it is in everybody’s best interest to develop and exploit a natural resource. Without a ‘license to operate’, assets can become mired in costly delays and damaging controversies. Many firms recognise the importance of these issues, yet find it difficult to assess and manage them systematically.
OUR UNIQUE RATING SYSTEM
The LicenseSecure™ methodology was developed by Critical Resource to assess stakeholder, political and reputational risks at mining and energy assets. We use the LicenseSecure™ scale (below) to benchmark an asset’s overall ‘license to operate’.
The model draws upon multiple local and national intelligence sources and over 150 indicators to cover the full range of risks (e.g. political, regulatory, social, environmental). It assesses both external factors and the strength of mitigation by company management. It also incorporates key elements of leading global sustainability standards (IFC Performance Standards, EITI, Voluntary Principles on Security and Human Rights, ICMM Principles, etc.).
Our database of 250+ assets provides global scope and many comparison projects. Based on an analysis of the information sources above, projects are given a rating from AAA to D, creating a succinct benchmarking tool for rapid comparison of project risk.
Please note: the ratings above are based solely on desktop research for illustrative purposes, and have not been conducted for clients. Project ratings for clients are kept strictly confidential. Other published ratings can be found on our insights page.