The Essential Link Between Risk Management and Quality Management

Risk management and quality management are critical parts of successful organizations (companies and projects). Each one supports the other and together they reduce company losses and streamline how the organization does business. With a new app that is available, TRM Advantage, risk management efficiency is significantly improved.

Risk management is all about identifying potential issues (risks), forecasting how likely they are to occur or reoccur, evaluating the potential consequences if they do occur, and taking appropriate steps to reduce their likelihood of occurring and the consequences if they do. Appropriate steps range from ‘do nothing’ for risks that are organizationally acceptable to planning/implementing actions that are taken to reduce the overall risk. Actions that reduce likelihood are designed to make the risk less likely to occur while actions that reduce consequence are intended to minimize problems if the risk does occur. Consequences are evaluated from four different perspectives: Safety, Health and Environment (SHE), Cost, Quality, and Corporate risk. If a risk is minimized from these different perspectives, it is unlikely to present a significant issue to the company or project.

Quality Management focuses on Quality Assurance (QA) and Quality Control (QC) where QA is concerned primarily with the processes used to generate an output and QC is focused on the inspection and testing of the output to verify that it meets customer requirements. QA looks at processes/procedures to make sure they are developed and implemented and is responsible for auditing them to ensure they are being followed. QC develops and implements the plans and checksheets used to verify that outputs from various processes/procedures are as they should be before they are sent to the customer. In quality terms, a customer is anyone that received a process output.

The Essential Link Between Risk Management and Quality Management

Risk management and quality management are critical parts of successful organizations (companies and projects). Each one supports the other and together they reduce company losses and streamline how the organization does business. With a new app that is available, TRM Advantage, risk management efficiency is significantly improved.

Risk management is all about identifying potential issues (risks), forecasting how likely they are to occur or reoccur, evaluating the potential consequences if they do occur, and taking appropriate steps to reduce their likelihood of occurring and the consequences if they do. Appropriate steps range from ‘do nothing’ for risks that are organizationally acceptable to planning/implementing actions that are taken to reduce the overall risk. Actions that reduce likelihood are designed to make the risk less likely to occur while actions that reduce consequence are intended to minimize problems if the risk does occur. Consequences are evaluated from four different perspectives: Safety, Health and Environment (SHE), Cost, Quality, and Corporate risk. If a risk is minimized from these different perspectives, it is unlikely to present a significant issue to the company or project.

The Essential Link Between Risk Management and Quality Management

Risk management and quality management are critical parts of successful organizations (companies and projects). Each one supports the other and together they reduce company losses and streamline how the organization does business. With a new app that is available, TRM Advantage, risk management efficiency is significantly improved.

Risk management is all about identifying potential issues (risks), forecasting how likely they are to occur or reoccur, evaluating the potential consequences if they do occur, and taking appropriate steps to reduce their likelihood of occurring and the consequences if they do. Appropriate steps range from ‘do nothing’ for risks that are organizationally acceptable to planning/implementing actions that are taken to reduce the overall risk. Actions that reduce likelihood are designed to make the risk less likely to occur while actions that reduce consequence are intended to minimize problems if the risk does occur. Consequences are evaluated from four different perspectives: Safety, Health and Environment (SHE), Cost, Quality, and Corporate risk. If a risk is minimized from these different perspectives, it is unlikely to present a significant issue to the company or project.