The other day I was invited to talk to quality executives on risk management. These were quality executives in a sector that we don’t consult in.
I was invited because the quality executives wanted an outside perspective of risk management. This is critical as sooner than later ALL quality programs and initiatives will be moving towards or integrating risk management.
Why are we being asked to facilitate the quality move to risk management. Years ago, we had the best selling books in the world on quality and ISO 9000. However, we’d seen our margins evaporate and we’d moved on to risk management. Soon, global quality consultancies and certified bodies also moves to risk. Now, ISO 9001 (2015) is integrating risk management into the standard and other families of standards as well.
FOUR KEY QUESTIONS?
So as an icebreaker, we asked the quality executives four simple questions that distilled our experience on moving from quality to risk. Here they are:
- What does operational materiality mean to you?
- What is your organization’s risk appetite and how do you measure it?
- What type of risk assurance do you require?
- To who are risks reported?
In the next issue of CERM Risk Insights, we’ll explore the importance of each one of these questions.
By the way, what are your answers?
Bio:
Greg Hutchins PE and CERM (503.233.101 & GregH@QualityPlusEngineering.com) is the founder of:
CERMAcademy.com
800Compete.com
QualityPlusEngineering.com
WorkingIt.com
He is the evangelist behind Future of Quality: Risk®. He is currently working on the Future of Work and machine learning projects.
He is a frequent speaker and expert on Supply Chain Risk Management and cyber security. His current books available on all platform are shown below:
