Managing risks can be vital to the survival of a company. Especially in the current situation of the automotive industry, this aspect is becoming increasingly important. If risks are identified at an early stage, measures can be taken to deal with them so as not to endanger the continued existence of the company.
But what are risks?
Fire, floods, machine stoppages, labour shortages are often mentioned [by whom?]. In the current situation, economic fluctuations and political risks are added to this.
But are these really risks? No, the above-mentioned examples are events that have already occurred and to which, of course, a reaction must be made. But then it is crisis management and no longer risk management. Many emergency plans often only describe the measures to deal with events that have occurred, but not the risks.
Chapter 0.3.3 of ISO 9001:2015 states the following:
Risk is the effect of uncertainties, and each of these uncertainties can have positive or negative consequences.
A current example is the corona virus:
The corona virus and its spread is an event that has occurred and not a risk. Whether a person becomes infected or not, and the possible health consequences of infection, is a risk. Based on the probability of an infection occurring in my environment and the resulting health consequences, I can estimate the risk of becoming ill. My measures for minimizing the risk (e.g. hygiene, participation in major events) are based on this.
A risk therefore has something to do with negative effects due to an event, and whether this event occurs must be assessed. If the probability of occurrence is high, the event will also occur with a high degree of certainty. Effects include customer dissatisfaction, customer downtime costs, low competitiveness and financial difficulties.
If you want to operate structured risk management, this means for you to focus on the systematic identification of risks, their evaluation, strategies for avoidance/mitigation, and those for dealing with risks.
Many readers are more likely to see risk management as a necessary evil. But dealing with risks seriously and constructively can also lead to significant insights and steps that can have positive effects on the performance of your production processes, for example.
However, always remember that ISO 9001:2015 (Chapter 0.3.3) also contains the following:
Addressing both risks and opportunities provides a basis for increasing the effectiveness of the quality management system, achieving improved results and avoiding negative impacts.
Turn risk into your opportunity
Please contact us, Guksa GmbH offers the right tools and methods:
Build up systematically your own risk management system. Define your danger areas (areas of the company with potential risks), identify your company-specific risks and then break them down into the processes of your management system.
Check the functionality of your management system at regular intervals through system and random checks by RPAS™. RPAS™ (Risiko- und prozessorientiertes Audit System) shows potentials for preventive cost savings as well as for an improved assessment of the risk potential of your company.
Expand your competence and let us train you as an Management System Risk Coordinator and Management System Risk Auditor. Employees of your company acquire the necessary competence to control and evaluate a risk management system.
If you found my article helpful or interesting, I would be very happy if you share it with others.
Your Jörg Rinn
Ingenieurbüro MCS GmbH
Dipl. Ing. (FH) Mechanical Engineering
QM- and Risk-Manager
Since 2008 I have been working for the engineering office MCS GmbH. As a project manager, I support companies in setting up and further developing their management systems and take on operational tasks (e.g. series production start-up, supplier management, quality planning).
In my function as auditor I regularly carry out risk assessments according to the RPAS™ method for suppliers to the automotive industry.
With my articles I would like to point out new methods and solutions for management systems, which facilitate the implementation of the requirements from the regulations, as well as those of your customers.