Risk Management
What is "Significant risk" for you? How would you describe/define it? I know there is not one way of defining it, so I was curious what the Quality community thinks about this.
4 Replies
Duke Okes
133 Posts
It will highly depend on your industry and your organization's risk appetite.  What some might consider significant others might not.
Significance can be related to the impact on customers, regulatory compliance, costs, ...
Many organizations have a risk table that defines several levels of risk, similar to the tables used in an FMEA.
Those are my thoughts as well, but what I was looking for here is to get a feel for what people (from the same or different industries) see as significant risk. How would they define it based on their experience and knowledge.
Hi Rosen, 
I totally agree with Duke Okes‍ , significant risk has everything to do with the impact it has a "foreseen" - if no mitigation/prevention is in place to avoid - event, to your organization's product, process etc. If as an example an event A occurs and your product has quality issues (not meeting the requirements) then isn't it a significant risk? But if this event A  occurs and your product quality is not affected but it is affected the delivery time, isn't it that also significant risk? So everything has to do with your perception and internal policies and contractual requirements. 

Risk analysis consider factors like:
1. The likelihood of events and consequences
2. The nature and magnitude of consequences 
3. Complexity , connectivity
and many more. 
I would suggest to read ISO 31000:2018 and IEC 31010:2019

Regards
P.V
Rosen,
Quality professional can involve in many different functions.  To help the discussion going, below are the few major areas that I was involved in for risk management activities.
  • Natural Disaster
  • Work stoppage (labor and job hazard)
  • Product Quality/ Warranty
  • Safety
  • Compliance 
  • Customer Satisfaction 
Maybe point out which areas that you are interested in knowing about "the significant risk" for a more defined discussion. 

Kaiwen Cheng
Owner, KC Business Consulting, LLC

President/ Chair, Queen City Robotics Alliance
kaiwen.cheng@outlook.com | kaiwencheng@queencityrobotics.org
Web: kcbcweb.com | queencityrobotics.org