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Risk Management
Table of Contents
Chapter 1: Identifying & Managing Risks
Utilizing the Cloud for Quality Management Software Solutions......................................................4
6 Traits of a Reliable Cloud-Based Quality Management System.....................................................6
We have compiled the results of our Risk Tracker tool into this blog post. In this
system, the administrator will log the event details such as the nature of the adverse
event they are experiencing and what the potential impact is on their business. From
there, the risk category will be determined and the probability and severity will be
entered which will lead to the outcome or result.
Risk Assessment lets the user see which event should be assigned a corrective and
preventive action. It ensures that critical events wont get lost amongst minor issues.
As a risk tool is able to filter events from the critical and non-critical it is also able to
distinguish the difference between the two. Some of the results that have been logged
in the VERSE Risk Tracker already have distinguished that some organizations may in
fact benefit from a risk tool, or a risk-based solution.
With the VERSE Risk Tracker, you can see what your risk is, email yourself the report,
and then refer back to it again whenever you want to leverage risk-based assessments.
Below is actual data based on our risk tracker report, including an example of each
risk category:
Tolerable: A tolerable event would be, for example, the certification of personnel.
Lack of training that is discovered post assessment would, in this particular case
be considered tolerable. This is a potential risk that exists in all organizations and
although it could end in disruption it has an easy solution, which would be to revise
procedures to make the post training assessment of that particular procedure a
mandatory training assessment later on.
Risk can rank anywhere from as low as reasonably possible to likely to result in severe
consequences or death. Any organization will face threats within their workplace and
that is why it is important for all to take precautionary measures to mitigate and deter
risk rather than wait until later and try to clean up the mess. It saves time, resources
and overall cost.
Risk tools are able to rank risk levels and provide precautionary measures to reduce
actual risk factors in the long run. It is important to determine where risk lies, so better
decisions can be made to foster quality and compliance. Try our Risk Tracker today
and see where your risks are.
Risk has become a buzzword in almost every industry. It is the foundation for
producing safe, quality products and services. Does implementing Risk Management
Software sound like an overwhelming task? Well, its not. We use risk management in
our everyday lives.
For example, lets consider this scenario. A winter storm is heading toward your
townthey are predicting between 12 to 16 inches of snow. While you can never be
certain that it will be this level of accumulation, you start to prepare yourself anyway
for this potential storm. When planning for the worst, you ask yourself a series of
important questions.
While not the most critical question, everyone living and working in the snowbelt
knows the first question is typically can I make it to work?
So your first risk assessment includes determining:
Then you start to consider the critical questions, should the storm prove to be as
severe as predicted:
You can keep warm with a fireplace, generator, gas stove, or lots of blankets.
You can keep your food from perishing by limiting opening the refrigerator/
freezer, placing food outside or in a garage to keep cold.
You can get light at night with candles, gas/battery lanterns, flashlights (or you
can go to bed early).
Being prepared for a power loss ahead of time will make the experience much more
tolerable if it should happen to occur.
Lastly, should the storm last longer than anticipated youll want make sure you have
sufficient supplies to see you through. So you ask yourselfdo I have enough food
and water?
Consider what you currently have on hand and what you should purchase prior to the
storm:
Bottled water
Non-perishable foodscanned and dried foods
Perishable foods that dont need refrigerationfruit, vegetables, bread
Controlling Risk with the QMS: Organizations use processes like Document Control
and Training to help ensure prevention. By controlling documents, and ensuring
proper employee training, you will effectively reduce risk of internal hazards
outdated documents and poor employee performance due to ineffective training.
What can you get during or after the storm if travel is limited?
Reducing Impact of Risk with the QMS: Regardless of how much preparation you do
beforehand, you will eventually be faced with an adverse event. If you can devise a
methodological plan to take action on an adverse event that has occurred anyway,
you will be able to reduce impact of its risk. In other words, expect (and prepare for)
the unexpected.
Ultimately, the QMSs Risk Management feature allows you to see where risk lies so
you can proactively address it before it spreads to other areas of your organization. In
Enterprise Risk Management, potential risks are identified; often through a complaint
or adverse eventmuch like our weather example above. From there, you can
evaluate the probability and likelihood of that event occurring and put measures in
place to mitigate or lessen the risk.
Understanding and preparing for any adverse situation is key to risk management.
Whether you are assessing risk in your daily life or for your job, it is important to ask
the right questions and determine pre-defined decisions and actions to ensure proper
risk management.
Decision Tree: Decision trees are easy to integrate with everyday processes. In
this case, you are given an input of an adverse event and then use the decision
tree to help determine the outcome of the event. Decision trees can be built in
such a way that will help you come to the right decision and provide guidance on
that decision. This is an effective way of risk assessment, especially since it allows
the user to follow a path. Decision trees are powerful because they allow users
to embed actions directly into operational processes. This is especially helpful
when assessing the impact of a supplier material on a finished product, reviewing
inspections or determining whether or not to issue a supplier corrective action or
approve a deviation.
Bowtie Model: The Bowtie Model is the method for assessment of low-occurrence
events. In some cases, there may be very little data on potential events. However,
Risk Register: Risk Management and Risk Assessment are designed as means for
measuring and making decisions to affect compliance. As risk is measured within
an organization, a history of risk within your organization. The Risk Register is
designed to help fine-tune operations based on the hazards that take risk from
all events, whether incidents, accidents and any adverse events. It is a centralized
location that will give you a visibility into the risk within all operations.
The supply chain is extremely complex. It is known that people are outsourcing more
and more which increases inherent risks. There are many challenges around supply
chain risk, in which having a traceable, visible means for communication is necessary.
Companies must receive a timely response to all events in order to build an effective
relationship with its suppliers.
If followed correctly and inserted into daily operations, risk management tools can
uncover more data, decision-making capabilities, and insights into redefining your
supplier relationships. With these tools in place, you can effectively take compliance
and quality operations outside of your four walls and extend to your supply chain.
1. Provides Tools for Identifying and Filtering Risk: In risk management, potential risks
are typically identified through a complaint or adverse event. From there, you can
evaluate the probability and likelihood of that event occurring. This is where tools
like the Risk Matrix are effective.
The Risk Matrix is a colorful grid that is designed to make risk levels obvious to
all employees within your organization. Using this tool, you can plot two or more
levels on a graph, usually severity and probability. Each risk level is then assigned a
number. Within the graph your organization can plot a formula to calculate where
two numbers intersect. The user then assigns a color to each risk level to indicate
the level of criticality.
Keep in mind that tools like the Risk Matrix are not staticthey need to be
adjusted and vetted by you over time to ensure that the right results are constantly
achieved. The goal is to define a risk level based on two levels and build guidance
into the results to help foster a decision based on the calculation.
2. Links with Corrective Action: The risk management tool automatically links with
Corrective Action to filter adverse events that are not critical. Otherwise, it would
be nearly impossible to weed out the critical events from the noncritical. Risk
management lets you see which events can be immediately corrected without the
need for a corrective action. This not only saves time, it also allows you to focus on
assigning a corrective action to only the most critical events, while ensuring that
these critical events dont get lost among the minor issues. Without this capability,
both events are often given the same priority, so the event you get to first is the
one that gets dealt with firstmeaning that critical events could go unnoticed for
some time.
3. Reporting to Ensure Continuous Improvement: When you have all of the data on
your risk, youll want to report on that information to ensure that risks are seen
by everyone across your organization. The QMS enables automated reporting, so
all risk data is rolled up into one holistic report so you can see any trends in risk
across different departments and locations.
Without some means of easily accessing the data, it becomes difficult to derive
trends and insights on your quality processes. The process of filtering and
exporting data becomes manual and time consuming. The automated QMS
simplifies the process of reporting by enabling you to search for data on multiple
criteria, search within records as well as attachments within those records. This
enables you to see the data pertaining to risk and make decisions that help
promote continuous improvement.
While the QMS simplifies the process of managing risks throughout your
organization, remember that people are still an integral part of the process. While
risk management tools take a level of subjectivity out of the equation, the ultimate
decision making still relies on the people within your organization. In fact, many
companies use a Risk Team to ensure that decisions are made properly, by using
historical data to help adjust their risk process over time to ensure accurate results.
Risk is common for all levels of compliance and is a universal language that is
applicable to many industries and operational areas. By automating the process of
risk management, your organization will gain an objective and systematic way to
filter and prioritize adverse events and improve decision-making capabilities.
Project Templates and speed: Certain times of the year are a lot busier than others.
Especially being in a competitive field. We often encompass the same type of project
many times over the course of year. However, rather than re-creating a different
project every time, we would like to have a template created that routinely delivers
the variables needed. With the click of a button we would like to have a specific event
loaded quickly and easily.
Therefore, I would like to ask you three questions that I think would help to get my
business running smoothly and carefully:
Does your Risk Management System allow me to build risk into my existing
processes?
Does it provide me the proper tools to quantify my risks and provide guidance on
actions to take to solve them?
Does it give me the ability to view all of my risks, report on them and allow me to
make improvements?
Thank you for your time and I do hope to hear from you soon.
Sincerely,
Looking for Improvement
Thank you for reaching out. Here at Verse Solutions we love to help others help
themselves. You had written and concluded your letter with three questions regarding
our Risk Management tools.
Does it provide me the proper tools to quantify my risks and provide guidance on
actions to take to solve them?
Yes. Once you identify potential failures and quantify their risks you can begin to take
action. Tools like Job Safety Analysis allow you to break down a job, design or process
into components and identify hazards to avoid risks or mitigate their occurrence.
Applying this to processes fosters improvement with interconnected steps.
Does it give me the ability to view all of my risks, report on them and allow me to
make improvements?
Yes. A tool called the Risk Register allows you to view all risks in a centralized location,
giving a comprehensive overview and allowing you to filter and prioritize the outcome
individually and appropriately. All risk tools cooperate with reporting which means
that with a little help from other modules you can run reports that show insight into
problem areas and ultimately issue a corrective action if needed. Centralized reporting
makes it simple to collect data from across an organization and put it to better use.
Since you have expressed to me that you manage many tasks daily and assign jobs to
certain employees I truly believe that automated technology would help you with your
needs. A single solution can help achieve compliance with built in modules like:
Employee Training
Document Control
Corrective Action
Risk Management
Audit Management
The Verse compliance management solution helps you manage and track
compliance in real time, so you can keep up with the pace of your business. Our
integrated modules inherit data from one process to the next, ensuring a continuous
communication loop. This is a huge benefit for someone like yourself who has many
daily tasks and needs to foster visibility and control throughout the business.
Sincerely,
Verse Solutions