CERM ® RISK INSIGHTS | Future of Quality: Risk™

#211 – RISK MANAGEMENT DETAILS FOUND IN ISO 14001:2015 – BOB POJASEK

Featured

Posted on July 16, 2018 by greg

ISO 14001:2015 placed its position on risk management in the Annex (A.6.1.1): “Although risks and opportunities need to be determined and addressed, there is no requirement for formal risk management or a documented risk management process. It is up to the organization to select the method it will use to determine its risks and opportunities. The method may involve a simple qualitative process or a full quantitative assessment depending on the context in which the organization operates.” However, they neutralized the confusing “risks and opportunities” phrase by defining it (3.2.11) as: “potential adverse effects (threats) and potential beneficial effects (opportunities).” Continue reading →

#210 – CROSSING THE STREET OF ACCELERATED CHANGE – DANIEL BURRUS

Featured

Posted on July 9, 2018 by greg

It’s one of life’s universal lessons: Look both ways before crossing the street. Parents have been impressing its importance on every generation since Henry Ford tinkered with the internal combustion engine. However, many of us forgot that good advice, or assumed it didn’t apply, when crossing from one decade of business into the next. Continue reading →

#210 – WHAT HAPPENED TO GENERAL ELECTRIC? – GREG HUTCHINS

Featured

Posted on July 8, 2018 by greg

General Electric (GE) for many years was the go-to company for competitiveness, efficiency, and innovation. General Electric’s tagline was ‘Imagination at work.’

GE more recently has had a number of troubles. GE’s profitability tanked. GE is selling many of its assets and divisions. GE was also taken off the Dow after 110 years. Continue reading →

#210 – COST OF PROJECT DELAYS – GARY HINKLE

Featured

Posted on July 8, 2018 by greg

The cost of delay on technical projects averages tens of thousands of dollars per day in lost profit. Major factors involved in these delay costs are lost revenue, cost of resources and opportunity cost.

This briefing describes a recommended practice for estimating project delay costs and using those estimates for decision making. Cost of delay factors are first explained; followed by examples; then, recommendations for using the estimates to increase profits. Continue reading →

#210 – TAKING ON UNNECESSARY PROJECT RISK – JOHN AYERS

Featured

Posted on July 8, 2018 by greg

This story is about risk at the enterprise program/project level. It is an example of centering your design around a high-tech solution to a problem when a low risk proven technology would have more than sufficed. Technical expertise ego got in the way of a practical low-cost approach resulting in unplanned schedule and cost growth. Continue reading →