HKIE Seminar on Risk Management for ISO 9001:2015

The Hong Kong Institution of Engineers (HKIE) –Materials Division organized the seminar named “Risk Management for ISO 9001:2015” on 18th Jan 2016. ISO 9001:2015 was issued on 15 Sep 2015 and it is a revolutionary change of the 2008 version which focuses on the “Risk Management” of organizations. Ir. CK Cheung (Lead Assessor of the USA’s International Accreditation Service (IAS)” was our guest speaker and he would like to share his experience for achieving the new standards implementation in the coming three years.

In the beginning, Ir. CK Cheung said the most important of quality system was “Integrity”. Then he introduced the new version of ISO 9001:2015 in which emphasized “Risk” & “Opportunity”. He also quoted Albert Einstein statement that “If you can’t explain it simply, you don’t understand it well enough.” So he try to explain risk management in the simply way.

Then Ir. CK Cheung briefed the ISO 31000:2009 – Risk Management as reference to fulfill ISO 9001:2015 new requirements. The most fundamental of Risk Management included “Communication and Consultation (5.2)”, “Establishing the context (5.3)” and “Risk Assessment (5.4)” with “Risk Identification (5.4.2)”, “Risk Analysis (5.4.3)” and “Risk Evaluation (5.4.4)”; and “Risk Treatment (5.5.)”, as well as, “Monitoring and Review (5.6)”.

Ir. CK Cheung also mentioned the treatment of risk in the project if identified. Those Risk could be “Avoid”, “Mitigate”, “Transfer” and “Accept”.

Ir. CK Cheung discussed that there would be no Quality Manual but just had Risk Management Manual in which identified all processes of the organization. No longer single manual for all companies existed. Risk associated with company was depended on its scale.

He summarized the quality development from QC to QA to QM and ultimately to Quality Risk Management.

Then Ir. CK Cheung explained how to define risk management through Risk Assessment plus Risk Control and then through Risk Management Planning, Risk Resolution and Monitoring.

He also introduced four types of Business Risk included Operation Risk, Financial Risk, Hazard Risk and Strategic Risk in the following diagram.

Finally, he summarized several requirements related to “Risk” in the ISO 9001:2015 as follows:
- Determination of the processes taking under consideration risks & opportunity (4.4f)
- Risks & opportunity that can affect conformity of products & services and the ability to enhance customer satisfaction should be determined & addressed (5.1.2b)
- When planning for the QMS, the organization shall determine the risks & opportunity (6.1.1)
- The organization shall plan actions to address risks & opportunity (6.1.2)
- Determining type & extent of control of external provision (8.4.2) (It doesn’t use the word “risk”, but meaning is that risk is present.)
- In determining the extent of post-delivery activities the organization shall consider the risks associated with the products & services (8.5.5a)
- The management review shall be planned and carried out taking into consideration the effectiveness of actions taken to address risks & opportunities (9.3.1d)

Ir. CK Cheung used a project management & construction of a High Speed Railway Train as example to explain different issues such as political resistance, financial implication, environmental impact, labor & worker supply, etc. Lastly, he used the Risk Management Process diagram as a conclusion.

After the talk, HKSQ members took a photo with the speaker for memory.

(Left: I, Ir. CK Cheung (Director, WCC Engineering Ltd.) and Mr. Thomas Tsang (Manager, Leading Edge Construction Materials Testing Co., Ltd.))

Reference:
HKIE-Material Division – http://mt.hkie.org.hk/