Typically, when you hear the word risk it’s associated with a bad or adverse incident.
At Distinct Compliance Engineering, we love it.
It’s inevitable as more organisations move toward management system certification (Quality, OHS, Environmental), and as more standards become harmonious with ISO’s annex SL, we are seeing more effort to implement risk management principles.
As people we inherently, and subconsciously, perform risk analysis all the time. For example –
The roads are wet, and I don’t want to be late, therefore I’ll leave earlier.
Almost all of the time the risk is proportional to what we can afford to lose, and we are often focused on the bad, or negative impacts, of hazards.
It’s not all doom and gloom; however.
Indeed, we do consider a lot of bad, whether it be safety, product, or business related, but often the opportunities that arise from good risk controls
Now, these opportunities are not always the inverse of the hazard. Simply because the hazard is a broken product due to transport causes, the opportunity may not only be, “happy customer”.
These opportunities also extend to reduced cost of quality and potentially redeveloping the
transport process both reducing overhead and presenting further opportunities. Think big picture.
Seeing this helps us foresee the future and move risk to a planning tool. A good risk assessment is a good road map for any project. Risk controls turn into actions that can be verified, measured for performance, and re-assessed. We have performed risk analysis on all sorts of processes, devices, and even ideas.
If your risk management process is cumbersome and not a value adding or if your staff are hesitant to use the process, then it’s 100% not tailored to your organisation’s needs.
- Define your risk profile to your organisation. Severity, probability, and acceptability. Every organisation will accept different levels or risk depending on size and type of exposure.
- Keep risk in the realm of practicality and probability. If a hazard involves an improbable series of events, is it a risk?
- Implement risk early in the process. Remember, planning tool. Inevitably, the PDCA cycle will get you there, but execute it early.
- Review your risk assessments often, especially after adverse events. Are hazards and controls still applicable?
- Contact Distinct Compliance Engineering.