Beat the Competition! Real World Examples of Risk-based Thinking to Get Ahead & Stay Ahead
Khurshed Kutky, Director, Global Business Assurance Services, CSA Group, Toronto, ON, Canada
Keywords: Application of Risk Based Thinking, Examples of Risk Based Thinking, ISO 9001:2015 changes
Almost every organization encounters uncertainties in their business at some time, and in today s fast-changing economic, political and social conditions, it is the forward-thinking organization that will be better prepared to identify and take advantage of emerging opportunities or protect the business from financial loss.
The ability of an organization to fully explore and understand the internal and external factors that can positively or negatively affect its ability to provide its products and services reliably to customers is therefore crucial to its continuing success.
The new 2015 edition of ISO 9001 requires that organizations must determine, monitor and review information about the internal and external issues that could potentially help or hinder the successful implementation of the organization s strategic plans within the context of the organization s operations. The standard mentions knowledge, organizational performance, legal, technological, economic and other issues that the organization can consider to enable an understanding of its context.
While there may be similarities in the way companies in the same line of business operate, the context of each organization may be quite different, and the risk factors within each organization could vary depending on various factors. These could include the caliber of the leadership team, the competence of employees, the organization s culture, the effectiveness of the design, procurement, operational, and other processes, as well as external market conditions that may affect either their own business or their customer s business.
In today s globally inter-connected economies, the context of the organization will typically also include regional, national, international, environmental, regulatory, social and other factors. The effective monitoring and review of the internal and external factors affecting the organization, using a risk-based approach, in conjunction with a comprehensive understanding of the needs of its customers and interested parties, can help an organization to strategically steer it away from adverse situations and move forward quickly to position itself for growth.
The terms Leadership and Risk-based thinking are new in the 2015 edition and leadership now has a specific role to promote the use of risk-based thinking. At the external level, this risk-based thinking may include consideration of geo-political, fiscal policy, regulatory and other influences, and at the internal level, there may design, procurement, labor unrest, technological and other risk factors to be considered.
To maximize the benefits, risk-based thinking must be progressively ingrained within the culture of the organization, with every activity and process being evaluated on an on-going basis to determine the likelihood of favorable and unfavorable outcomes.
Inculcating risk-based thinking throughout all the processes of the organization can promote a more stable and sustainable operation, improve reliability of product and service quality and enhance customer confidence and satisfaction.
Through examples of the application of risk-based thinking in the day-to-day processes of a company, as well as at the external and company-wide level, this presentation will illustrate how the effective implementation of risk-based thinking using the ISO 9001:2015 approach can provide a competitive edge to companies and help your organization to get ahead and stay ahead of the competition!