The Importance of Quality Risk Management

Dec. 7, 2011 - PRLog -- Risk management principles are effectively utilized in many areas of business and government including finance, insurance, occupational safety, public health and by agencies regulating these industries. Although there are some examples of the use of quality risk management they are limited and do not represent the full contributions that risk management has to offer.

In addition, the importance of quality systems has been recognized in industries, and it is becoming evident that quality risk management services are becoming valuable components of an effective quality system. It is commonly understood that risk is defined as the combination of the probability of occurrence of harm and the severity of that harm. However, achieving a shared understanding of the application of risk management among diverse stakeholders is difficult because each stakeholder might perceive different potential harms, place a different probability on each harm occurring and attribute different severities to each harm.

In past years, risk management was mainly applied in the context of safety at work, environmental safety, product safety and product liability (and related insurances). The Risk Management Process courses focus on the safety of people, the environment, technical systems and processes. In these individual sub fields, risk evaluation and risk treatment is performed in a bottom-up approach. The bottom up approach helps all employees to identify hazards and to report them to their line managers. More recently, risk management has gained new importance as an obligation of the top management and executives within the framework of corporate governance. The primary task of risk management is to contribute to the achievement of strategic, operational and financial objectives as well as objectives related to the safety of people and the environment. A top-down approach is used for risk evaluation and risk treatment. An effective risk management process means that all risks are being controlled and that no problems will occur. In order to control these risks, it is necessary to identify and understand the risks, try to foresee any possible consequences, predict who is going to be involved or affected and implement successful safety measures that will minimise or even eliminate the risks. In other words there is a need to assess any possible risk involved in each activity (risk assessment); decide how to approach the problem (risk strategy), and employ all measures needed for the participants’ protection (safety measures).

The IRCA Global Risk Management Process courses aim to cover the combination and coordination of the top-down approach and the bottom-up approach - thereby, risk management becomes a powerful tool for managing organisations in order to cope with increasing complexity.

Many organisations do not have a comprehensive management system. Either they only have parts of a management system or they are managed on the basis of more or less systematic interpersonal direction and control. In such a context, risk management can be designed independently if it is justified by the size, complexity and risk exposure of the organisation.

At IRCA Global, we are committed to continual improvement in our performance. Product / service quality is integral to the way we do business, while we constantly aspire to leading industry practice and recognition. We recognise employees, contractors, business partners, suppliers, customers, visitors and communities as stakeholders in our business.

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IRCA Global is a leading Risk Management solutions provider in the areas of Safety, Health, Environment and Quality,who assist clients to address the avoidance of loss in a cost effective manner through high quality systems, products and services.