Leadership, ISO 9001, Quality Management, Quality Management System, SHEQ, SHEQ Software

Risk is the price you pay for an opportunity

Risk is the price you pay for an opportunity

QUALITY MANAGEMENT SYSTEM ISO 9001:2015 CLAUSE 6.1 ACTIONS TO ADDRESS RISKS AND OPPORTUNITIES

Risk Is The Price You Pay For An Opportunity

INTRODUCTION

There have been many revisions made to ISO 9001 over the years.  Some changes have been insignificant, while others are valuable adjustments, such as ISO 9001:2015 Clause 4 The Context of the Organisation.

One of the clauses 6.1 is a valuable adjustment.  Before this amendment, there was no consideration regarding risk in ISO 9001 and not even the idea that risk is nothing more than worrying negatives.

This new tactic towards risk is well thought out, organised, and insightful regarding risk and its impact on your company.  Risk does occur and creates obstacles for businesses; however, it also shows companies likely prospects.  “risk and opportunities come in pairs,” written in the book “The Great Pearl of Wisdom” by Bangambiki Habyarimana.

CHANGING YOUR VIEW ON RISK

At Safety Risk Management, we look at risk differently and see it as a helpful task rather than a harmful inconvenience to tackle more often than one would like to.  If you “Celebrate risks and Celebrate weaknesses”, you will identify factors that have a negative impact, as well as possibilities that have a positive effect on the company.

Risk is also the place where you’ll find a myriad of opportunities that can lift you up.

For instance, your customers have expressed a requirement for a product that you do not manufacture.  You will lose clients if you don’t come up with a plan.  Worse still, you will not interest new clients if you do not have the product available.  Not having this new product will undoubtedly put your company at risk.  However, it could also offer you a new possibility.  If you meet your current clients’ requirements by manufacturing this new product, you will also get new clients.

NEW RISKS

However, this is when it can become a challenge.  So, if Top Management gives their approval to manufacture the product, you will run into a new string of risks.  There is a risk of not having enough experienced staff to do the work; you may experience delivery issues and redirect resources away from your other products.  Employing and educating new employees could lead to other new products and ease the stress of meeting targets.  As mentioned before, “Opportunity and risk come in pairs.”

USE SHEQ SOFTWARE

It is the company’s responsibility to have a plan of action to identify both risks and opportunities.  If you have been working with SRM using Mango Compliance Software, you are on your way to achieving Quality Management System accreditation.  SRM and many of our clients use Mango Compliance Software – www.mangolive.com.  Mango makes it easier to get ISO 9001:2015 certification.

CLAUSE 4 CONTEXT OF THE ORGANISATION AND INTERESTED PARTIES

By doing a SWOT analysis (Strengths, Weaknesses, Opportunities and Threats), you can identify the risks associated with the above clause.  Additionally, finding the opportunities can assist in improving the anticipated outcomes.

So, recognising the opportunities and risks will provide an array of options on how to move forward.  To overcome risks, you can choose from the following:

  • Remove the risk cause
  • Alter the probability and outcome
  • Avoid the risk
  • Split the risk
  • Keep the risk with an educated choice
  • Accept the risk to obtain an opportunity

The following choices are available when addressing the opportunities:

  • Agree to new practices
  • Develop new products
  • Approach new markets
  • Find new clients
  • Create alliances
  • Utilise new technology

At SRM, we amended our SWOT analysis and had a meeting with employees to get their suggestions.  Afterwards, we input the information into the Risk Module on Mango, which has a workflow that records action plans to stop or reduce risks and improve opportunities.

In the Risk Register on Mango, we entered the risks, opportunities and related actions.  We evaluate the risks and opportunities once a month, identifying others in our Management Meeting, guaranteeing we manage them well.  It is about avoiding being caught unaware but also helps to grasp opportunities when they come up.  So we need to praise ISO 9001 for recognising this essential turning point.

CONCLUSION

  1. Revise your SWOT analysis
  2. Set up meetings with your employees and ask for suggestions
  3. Define how the company will eliminate or minimise risks
  4. Define how the company will benefit from new opportunities
  5. Constantly re-examine risks and opportunities at monthly Management Meetings
  6. Urge and agree to your personnel having input regarding the Risk Register

SRM is ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 certified. Contact our consultants today. Let us know if we can help you with the development and implementation of your Quality Management System.

Associated Blogs:

https://srmc.co.za/iso-9001-clause-4-context-of-the-organisation/

https://srmc.co.za/iso-9001/

Links to our services:

https://srmc.co.za/services/consulting/

https://srmc.co.za/iso-certifications/