Managing Quality & Risk Week September The Properties of Risk Management Module leader – Tim Rose

Risky business…?

Module route map Semester 1Date (W/c)Content Week 107/09/2015Introduction to Module & Topic Week 214/09/2015The Properties of Risk Management Week 321/09/2015The Properties of Quality Management Week 428/10/2015Risk and Failure Week 505/10/2015Risk and People Week 612/10/2015Quality Monitoring and Controlling Processes 19/10/2015College closed for staff development 26/10/2014Reading week Week 702/11/2015Risk Management Systems [1] Week 809/11/2015Risk Management Systems [2] Week 916/11/2015Independent research Week 1023/11/2015Peer review Week 1130/11/20151:1 Tutorials Week 1207/12/2015Assignment workshop/ revision N/a11/01/2016Exam

Intended learning outcomes By the end this session you will:  Discuss the nature of identifying and assessing risk  List basic risk elements  Discuss scope and impact of risk  Explore risk management techniques (in relation to FAILURE).

Identifying and Assessing RISK - Activity  Split into three groups  Using one of the following techniques to identify and risk in an area of/ an organisation of your choice: 1. Risk Register (AKA Risk Assessment) 2. PESTLE 3. SWOT  Present your findings to the group  Evaluate the effectiveness of each approach.

Risk Elements - Group discussion  According to Sadgrove (2015), there are six types of Business Risk that require management –  Strategic  Operational  People  Technology  Financial  Compliance [Sadgrove, p.26 (2015), The Complete Guide to Business Risk Management]  In groups, consider the scope [i.e. sub-elements] and potential impact of each of these risk factors.

FAILURE

Mechanisms to detect failure  In-process checks  Machine diagnostic checks  Point of departure interviews  Phone surveys  Focus groups  Complaint/feedback.

Failure analysis  Accident investigation  Large scale national disasters  Failure traceability  Traced back to source  Complaint analysis  Timely, perception by the customer  Critical incident analysis  Gathering customer’s facts (positive & negative).

The three tasks of failure prevention & recovery Failure detection & analysis Finding out what is going wrong and why Improving system reliability Stopping things going wrong Recovery Coping when things do go wrong [Slack, et al (2007)]

FMEA – Failure Mode and Effect Analysis  Checklist to identify failures before they happen  3 key questions: 1. What is the likelihood that failure will occur? 2. What would the consequence of the failure be? 3. How likely is such a failure to be detected before it affects the customer?.

Learning outcomes from this session Throughout this session you have: Discussed the nature of identifying and assessing risk Listed basic risk elements Discussed scope and impact of risk Explored risk management techniques.

Out of class activity  Consider ‘failure’ in your organisation – what does it mean? On what level is this applicable to your role? Which failure management tool might best suit your audit task?  Suggested reading: Sadgrove, K (2015) The Complete Guide to Business Risk Management  Chapter 2: How to identify and Assess Risk  Explore