Operational risk tries to identify and manage risks for people, processes, and systems; it is a discipline and behavior that needs to be put in place. As such, a framework to control the process is recommended. The framework is a set of integrated tools, processes, and mitigation strategies that assists a company in managing, measuring, and monitoring operational risk
- Optimization, and
In this blog we will discuss the integration process.
Managing risk is a conscious process. It is involved in all day to day activities, whether as manager or as an employee. The ability to have the correct information when you need it and where you need it is essential to a safe operating environment. Being able to easily record an event, having this information passed on to the correct people for corrective actions, having the information rolled up into the correct performance indicators, make the job of managing risk easier.
There should be no silos of information when it comes to managing the operational risk process. From, the people whom identify and asses
risks, the observer who reports the incident, to the safety specialists who evaluates the incident, the engineers who determine corrective actions, the accountants who cost justify and manage the budgets, the maintenance planners and technicians who implement the correction, and others, all have information that is essential to minimizing, managing, and reducing risks. Information that flows quickly and correctly from one area of the organization supports the continuous safety improvement and risk reduction environment that characterizes a modern manufacturing company.
Figure 1: Example of a Multi Facility Dashboard
This posting is the fourteenth of a series of blogs discussing various factors of operational risk management as it pertains to manufacturing organizations. Please feel free to comment and discuss this series.
Incase that you have missed this series; Below are links to earlier postings in the series.
Part 6:ORM- Framework – Governance
Part 7 ORM- Framework – Planning
Part 11ORM Framework – Execution
Part 12ORM Framework – Visibility
Part 13ORM Framework – Optimization