CERM Risk Insights #34

Hello Readers:

This year, 2013, was huge for risk and risk management.  ISO is adopting risk in most of its standards.  This is occurring with most national standards.  Global events such as comets, global warming, natural disasters, and political events are increasing in complexity and ferocity.  VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) is the new normal.
Enterprise Risk Management (ERM) is evolving into a discipline.  Organizations and associations are adopting ERM and are even rebranding themselves as ERM organizations.  ERM is being incorporated into statute, rules, standards and guidelines in more than 23 sectors. Continue reading

#32 – RISK & QUALITY: SIMILARITIES AND DIFFERENCES – T. DAN NELSON

T. Dan Nelson - Screen Shot 2013-09-06 at 8.16.28 PMI believe that risk and quality will never resolve, one into the other. Though they may be related, each will always have its own identity and purpose.

PURPOSE OF RISK MANAGEMENT
The purpose of risk management is not, and should not be, to manage quality.  Quality should not be driven by risk.  Of course, risk as it pertains to quality must be recognized and adequately managed by successful organizations, or they would not be successful.  Were risk not being managed to some degree to ensure delivery of quality product, it seems an organization would not develop to the point of needing enterprise-wide risk management. If poor quality puts an organization out of business, there would be no business. Continue reading

#31 – DEMING NOT JUST A QUALITY GURU – A BUSINESS GURU – T. DAN NELSON

T. Dan Nelson - Screen Shot 2013-09-06 at 8.16.28 PMBy the late 80s, it became apparent that Japanese cars were in many ways superior to their American counterparts. They were often more reliable and durable and they got better gas mileage. They were of superior quality. They often still are.

To what do the Japanese attribute their success?  The teachings of W. Edwards Deming.  The Japanese listened to Deming when Americans would not. Continue reading

#31 – A POEM / ISO 9001 IS BEING CHANGED – SANDY LIEBESMAN

Sandford Liebesman pixA management standard on quality
ISO 9001 is its name
Is used by 1 million worldwide
It’s being changed, what a shame

The committee draft has 10 clauses
Compare to 9001:2008’s eight
Names of clauses are changed
Some requirements I can’t find, I’m irate! Continue reading

#31 – RISK MANAGEMENT OR QUALITY MANAGEMENT – WHICH IS ON TOP? – GREG HUTCHINS

Greg Hutchins pixWe’re asked often about the future of quality.  As a matter of fact – a lot.

Our deck Future of Quality: Risk® went viral.  We even have a trademark on this.

Well Clive Robinson, Leading Adviser Quality Management for Statoil’s project group had an interesting point of view.  He viewed our deck and was left with the impression that we were predicting that the “Risk Manager will replace (absorb?) the Quality manager role.”  This isn’t what we had in mind.  It’s too early to tell. Continue reading