The notion that by outsourcing or contracting, you have transferred your risk to another party is a myth. If it isn’t core to the achievement of your objectives or if the expertise resides outside of your business then outsourcing is positive.
Senior executives, both in Government and Private Enterprise say “there is no need to worry about that risk – I have transferred that to the Contractor.” Continue reading
Nowadays risk management is getting more and more credits.
I don’t know if this trend is dictated by the increased number of unknowns the crisis is showing us, by an increasing management perception, or by something else.
What I clearly see is the frequent mention risk gets.
It is not my aim here, in a short article, to explain what risk management is.
One of the key issues facing many organisations revolves around what a risk management framework looks like. ISO 31000 highlights the elements of a risk management framework as shown below: Continue reading
Where was the QANTAS Board Risk & Audit Committee during the past 6 years of Alan Joyce’s systematic destruction of, at one-time, one of the world’s leading airlines?
Although there are growing calls for the sacking of Alan Joyce as CEO of QANTAS following the announcement this week of a $3b loss, there is a still a strong chorus of supporters saying the result is just a myriad of complex problems i.e. a death by 1000 cuts. To the outside world it looks more like Monty Python’s mutilated Black Knight maintaining “Tis but a scratch”. (https://www.youtube.com/watch?v=zKhEw7nD9C4) Continue reading
There is an expression that “no two snowflakes are alike.” Similarly quality characteristics of parts produced from the same production process are not alike.
A simple production process, e.g., turning, can have variations in the machined diameter of a shaft because of play in the tooling or operators skill. These variations lead to “quality risks,” i.e., if variations in the process are not controlled there is a risk of producing out-of-specification machined shafts. Continue reading