Risk management - An essential element of any Management System

QHSE Aberdeen, based in Westhill, Aberdeen, provide consultancy and advisory services across a range of sectors including oil and gas, food and drink and Information Technology, and helps organisations develop and maintain their business management systems to meet ISO standards.

Risk management is an essential element of any Management System. ISO standards, require an organisation to adopt a “risk-based thinking approach” to determine the requirements to efficiently mitigate the risks associated with the implementation and maintenance of a management system.

This approach allows the organisation to determine the critical processes and extent of documented information required to develop an effective and mature system.

Risk-based thinking

Risk is the effect of uncertainty, which might be positive or negative. Positive effects may lead to opportunities which could be exploited. On the other hand, negatives effects may have a damaging or harmful impact on the organisation, its people, or its property.

ISO management standards now generally contain the requirement to plan and implement actions to address risks and opportunities.

The FMEA (Failure Mode Effects Analysis) method, is an example of a “risk-based thinking” technique.  It is a step-by-step approach which identifies potential failures i.e., initial risks, in tasks including design as well as in process, product or service, and allows the organisations to better control, monitor, and measure the residual risk, within the system.

Although the organisation is not required to have a formal risk management programme, the principles contained in ISO 31000 (Risk management: Principles & Guidelines) provides useful information for those seeking a more formal approach to risk management, perhaps as part or overall governance arrangements. As a minimum, an organisation will need to:

• Identify risks and opportunities
• Analyse and prioritise risks and opportunities, deciding what is and is not tolerable
• Plan how to address risks by, i.e, avoiding them altogether, mitigating negative effects, accepting the risk in order to pursue an opportunity, or sharing with another party, such as though insurance
• Implement planned actions
• Check the effectiveness of the actions taken

In business, the aim will be to optimise the taking of risks, not to eliminate them, thus achieving improved results and preventing negative effects. It is only by taking some degree of risk that an organisation will be able to survive and grow.

The adoption of an ISO Management System is a strategic decision that helps an organization to improve its overall performance and to provide a sound basis for its sustainable development initiatives. Many organisations implement a formal Quality management system after finding that their customers (in both the private and public sectors) want assurance that the products and services they are looking to purchase or obtain will meet their requirements for quality.

If your organisation could benefit from an ISO Management System, then give the experts a call, founded by David Rusling and Angela Scott in 2015, QHSE Aberdeen have experienced a significant increase in demand for Implementation of Management Systems and all other QHSE services, including their popular ISO INTERNAL AND LEAD AUDITOR COURSES.

A strong team of Lead Auditors with a broad range of experiences and a wealth of knowledge are on hand to answer all your questions.

QHSE Aberdeen provide a Consultancy and Advisory service to organisations of all sizes and sectors that require assistance in the development & implementation of robust Management Systems.

www.qhseaberdeen.com

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