“Risk-based thinking”, as an approach, have left organizations torn between whether this approach really matters and makes a difference to the business or whether their risks are addressed the way it should be. With the revision of ISO 9001:2015, this confusion spread like a wild fire. Stringent compliance requirements and timelines have instigated a sense of responsibility and action, as it is a clearly bounded methodological approach that distributes risk across the full scope of an integrated business function.
There have been proven instances to state that organizations who have adopted risk assessment approach through the length and breadth of their processes have been more risk-proof, than those who focused only at an organizational level. In an era of rapid innovation and transformation, risk-based thinking can not only serve as a remedy to poor quality but also define the future of an organization.
To gain a clear understanding of risks from both internal and external issues, it is ideal to adopt a systematic approach towards aggregating all the risks in a centralized location. This will enable organizations to have a close view of all the prevalent risks across functions, identify the acceptable and unacceptable risks, and adequately plan next steps to manage these risks.
Initially it may seem to be an unsurmountable charge on effort, resource, and time, but, in the long run, processes can eliminate deviations, minimize cost of poor quality (CoPQ), ensure regulatory compliance, and elevate your brand. It is an opportunity for organizations to exhibit greater knowledge and preparedness, reducing the probability of quality misses or a high-risk impact.
With growing technological advancements and cutting edge competition, it is a make or break situation for organizations. Being aware of the threats and keeping in line with quality parameters can keep an organization stable in the face of any ordeal. Quality is not perceived in the light of risk very often, but if we put the two together, it can do wonders for any business environment. Click here to access the article “Elevate Quality Using a Risk Lens”, which details 5 key steps to help organizations incorporate a risk-based approach into their system.