CQI Webinar – Principle of Risk

CQI Webinar named “Principle of Risk” was held on 5^th Nov 2020. I summarized it for sharing below. Mr. Alexander Woods was a facilitator to introduce the seminar and speaker – Mr. Martin Graham.

Mr. Martin Graham (NQA Training Manager / Lead Auditor) discussed what risk is and the principles of risk based thinking.  Risk is defined as “the effect of uncertainty”.  Risk and uncertainty typically come from people, process, product and infrastructure.  He said “What is in doubt that could affect what we do with regard to our intended outcomes?”  Then he introduced different type of risk including financial, compliance, human, Env/H&S, Perception, Operational and Infrastructure.

And then he discussed the action taken to address a risk, typically addressed an uncertainty.  “Contextual Risks” is equivalence to “Relevant Uncertainties”.  And he demonstrated different possible effects of uncertainty.  

After that he mentioned “Risk-based Thinking” that allowed you to consider the current situation and the possibilities for, and impact(s), of change.  It should be systematic within the management system (in any part of the system, process or functions) but not separate component. Identifying and addressing risks should be a proactive rather than a reactive process in preventing or reducing undesired effects.  Its intended outcomes were objectives, policy, compliance, satisfaction, improvement and so on.  Some tips were demonstrated.

Finally, Mr. Graham said preventive action is the result of effective risk assessment.  There is no ‘correct’ methodology (some possible methods – SWOT, PESTLE, FMEA, ISO 31000, Cause and Effect, Brainstorming, etc.) but you need to make it work for and keep it relevant to your organization/process.  You might not be able to eliminate the uncertainties but you could manage the effects.  Moreover, he showed the risk clauses under ISO 9001:2015 and PDCA concept.

Lastly, he alerted us to keep risk management system if have under constant review and update especially in the key areas within the “Planning of Changes” clause.  And he introduced the Risk-based thinking management programme included Identify (I), Analyse (A), Treat (T), Monitor (M) and Control (C) at the end.

Reference:

CQI-HK - http://www.thecqi.org.hk/

CQI-UK - http://www.thecqi.org/

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