My topic last week was ISO9001. This week I take on ISO9001-2015 and more specifically, the addition of Risk Management. Just like with ISO 9001, you need to have a process in place for managing risk and you must be able to prove that you follow that process.
Risk Management is not just important because of ISO9001-2015, it is important to keep your company running properly and growing.
Let’s break down risk into 2 types: Direct financial impact and indirect financial impact.
Direct Financial Impact
Let’s look at a few examples that could cost you money today.
Warranties – The cost of fixing a problem with a product is the most expensive if it is in the customers hands. You have shipping both ways and fixing the problem. Or, you have to send out a service technician. Fixing the problem in the design phase is the most cost effective time.
Lawsuits – Companies must be attentive to issues that could result in a lawsuit.
Workplace accidents – A worker could be involved in an accident due to lack of training or a poorly designed workspace.
Unhappy Customers – It is easier to keep a customer than find a new one. A customer that leaves could also be bad publicity. It is a good idea to have a procedure in place that will keep them happy.
Indirect Financial Impact
Here are a couple of examples that could cost you money in the future.
Inefficiency can increase costs. It is always a good idea to be on the lookout for better ways to perform activities.
Employee turnover is expensive. It is important to look for ways to minimize employee turnover.
My take on Risk Management
It is important to take on a CYA attitude towards Risk Management. When in doubt, perform a risk management analysis. To be confident that you have looked at all options, get others involved. Sometimes it helps to have fresh pair of eyes view the risks.
PLM software has a workflow component that can help with your risk management compliance efforts.
Contact me to learn more…