2010 Annual report

Rio Tinto’s business units and functions assess the potential economic and non economic consequences of their respective risks using a predefined framework provided by the Group’s Risk policy and standard. Principal risks and uncertainties are identified when the Risk management committee, business unit or function determines that the potential consequences are of sufficient materiality to be considered significant at a Group level or where the risk triggers a succession of events that in total become material at a Group level. Once identified, each principal risk and uncertainty is reviewed by the relevant internal experts and the Risk management committee.

The following describes all known principal risks and uncertainties that could materially affect Rio Tinto. There may be additional risks unknown to Rio Tinto and other risks, currently believed to be immaterial, which could turn out to be material. These risks, whether they materialise individually or simultaneously, could significantly affect the Group’s business and financial results. The risks outlined below omit detail on how each is managed and mitigated, or how some risks could result in either a positive (upside) or negative (downside) impact. An explanation of the Group’s process for managing these, and all other risks to which it is exposed, is given in the section entitled Risk management. The principal risks and uncertainties should be considered in connection with any forward looking statements in this report and the cautionary statement.