Using Risk Based Thinking to Improve Your Business

If you use a quality management system, or QMS, there is a good chance that risk-based thinking is one of the tenets you follow. Risk-based thinking has the potential to lead to major improvements in most companies which is why it is such a common component of QMSs. However, what does it really mean to fully integrate this kind of approach into your procedures and policies? Consider these facts about how to adopt risk-based thinking and how you can use it to improve your business. 

Risk-Based Thinking Basics

Risk-based thinking is essentially about anticipating problems before they occur. Although this can mean different things to different businesses, when you focus on identifying risks that face your company and then put procedures in place to mitigate them, you get better outcomes. Risk-based thinking may not always allow you to prevent a risk from becoming a reality, but if you’ve considered the potential of the event occurring and have a plan for coping with it, your company will recover quicker. If your QMS has risk-based thinking as a criterion, it is in place to insulate you and your customers from the fallout of disruptions. 

Definition of Risk

What exactly constitutes a risk varies from industry to industry. As you define risk for your organization, make sure all stakeholders are part of the process. There are likely to be top-level risks, such as natural disasters, that affect everyone, and stakeholder-specific risks, like the loss of a critical component manufacturing partner that was essential for one team’s work. Once you define the risks facing your business, you can then make appropriate plans for responding to them. 

Rewards of Risk-Based Thinking

Your business can benefit greatly from risk-based thinking. When you have plans in place for dealing with risks, you’ll experience less downtime and disruption if a risk is realized. You’ll also experience better communication among your team, improved morale, and safer working conditions. Risk-based thinking also helps you identify new areas of potential growth and improvement you can leverage. 

At Trident Quality Management Solutions, we’re committed to helping companies achieve QMS certifications that will boost their businesses and improve their outcomes. For in-person or remote assistance, call us today at (520) 314-4344.

Posted in Quality Management.

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