4 Effective Risk Mitigation Strategies - Accendo Reliability

4 Effective Risk Mitigation Strategies · Avoidance. If a risk presents an unwanted negative consequence, you may be able to completely avoid those consequences. Identifyingriskisanimportantfirststep.Itisnotsufficientthough.Takingstepstodealwithriskisanessentialstep.Knowingaboutandthinkingaboutriskisnotthesameasdoingsomethingaboutrisk.Riskwilloccur.Somegood,somebad.Someminor,somecatastrophic.Yourabilitytomitigateriskallowsyoutoproactivelyacknowledgeandaccommodaterisks.Let’stalkaboutfourdifferentstrategiestomitigaterisk:avoid,accept,reduce/control,ortransfer.AvoidanceIfariskpresentsanunwantednegativeconsequence,youmaybeabletocompletelyavoidthoseconsequences.Bysteppingawayfromthebusinessactivitiesinvolvedordesigningoutthecausesoftheriskyoucansuccessfullyavoidtheoccurrenceoftheundesiredevents.Onewaytoavoidriskistoexitthebusiness,canceltheproject,closethefactory,etc.Thishasotherconsequences,yetitisanoption.Anotherapproachistoestablishpoliciesandproceduresthatassisttheorganizationtoforeseeandavoidhigh-risksituations.Bynotstartingaprojectthatincludesahighunwantedrisksuccessfullyavoidsthatrisk.Testingorscreeningofproductsthatmayhavealatentdefectwhichmayleadtounwantedandunacceptablyhighfieldfailuresisanoption.Screeningisnot100%effectiveyetmayreducetheriskoffieldfailuressufficiently.Designoutofaproductorprocesstheelementsthatpermitanunwantedrisktoarise.Aproductdesignchangetoamorerobustmaterialavoidsunwantedfailuresduetounacceptablewearofalessrobustmaterial.Implementingengineeringdesignreviewsintheproductlifecycleprocessmayhelpidentifyhigh-riskareasofanewproductorprocesspriortothedecisiontostartshipping.AcceptanceEveryproductproducedhasafinitechanceoffailinginthehandsofyourcustomer.Whenthatriskisatanacceptablelevel,sufficientlylowestimatedfieldfailurerate,thenshiptheproduct.Accepttherisk.Whenthedecisiontoaccepttheriskisinpartbasedonanestimateorprediction,thereistherisktheinformationincorrectlyforecaststhefuture.Therefore,forhighconsequencerelatedfieldfailures,closelymonitoringfieldperformanceorestablishingearlywarningsystemsmaybeprudent.ReductionorcontrolFMEA,hazardanalysis,FTA,andotherriskprioritizationtoolsfocushelpyouandyourorganizationidentifyandprioritizerisks.Reducingtheprobabilityofoccurrenceortheseverityoftheconsequencesofanunwantedrisk(sayproductfailure)isanaturaloutcomeofriskprioritizationtools.Ifitisnotpossibletoreducetheoccurrenceorseverity,thenimplementingcontrolsisanoption.Controlsthateitherdetectcausesofunwantedeventspriortotheconsequenceoccurringduringuseoftheproduct,orthedetectionofrootcausesofunwantedfailuresthattheteamcanthenavoid.Controlsmayfocusonmanagementordecision-makingprocesses.Improvingtheabilitytofinddesignflawsortoimprovetheaccuracyoffieldfailureratepredictionbothimprovetheabilitytomaketheappropriatedecisionsconcerningrisk.Anothermethodtoreduceorcontrolriskistodiversify.Thinkingthroughthemixofproducts,technologies,markets,operations,andsupplychainspermittheteamtheabilitytolimitthehigh-riskopportunitiestoamanageableoracceptablelevel.Finally,unwantedeventsorhighfieldfailurerateswilloccur.Thinkthroughbothhowyouwilldetecttheonsetoftheeventandhowtorespond.Itmaybewisetostopproductionandshippingwhenproductfailures,evenone,hasamajorconsequence(startsahomeonfire,forexample).Haveplansinplace.Actingquicklyandappropriatelymayreducetheexposuretomorefailures/adverseconsequences.TransferenceThisstrategyistoshifttheburdenoftheriskconsequencetoanotherparty.Thismayincludegivingupsomecontrol,yetwhensomethinggoeswrongyourorganizationisnotresponsible.Thisapproachmaynotworktoprotectyourbrandimageiftheproductisassociatedwithyourorganization.Evenifthepowersupplyvendorpaysforalldamagesduetofailuresintheirunit,thecustomeronlyknowsthatyourproducthasfailedandcauseddamage.Usethisapproachwithcaution.Aconventionalmeanstotransferrisktoanotherorganizationiswiththepurchaseofinsurance.Thismayrequireacarefulanalysisofthepresentingrisksandprobabilities,yetisaviableoptioninsomesituations.Contracttermswithsuppliers,vendors,contractors,etcmayprovideameanstoshiftriskawayfromyourorganization.Forexample,ifapowersupplyfailsinanexpensiveservercausingthelossofrevenueforacustomer,intypicalsituations,youmightaskforandreceiveareplacementpowersupply.Or,youcouldrequirethepowersupplyvendortocoverthecostoftheentireserver(whichthepowersupplycausedtofail)andthelossexperiencedbythecustomer.SummaryofRiskMitigationStrategiesAvoid,accept,reduce/control,ortransfer.Foreachriskyouencounter,youandyourorganizationwillhavetodealwithit.Alittleforethoughtandworkenablemoreoptionsthanjustamajorproductrecallorbankruptcyfiling.Withinyourorganization’sriskmanagementframeworkthereshouldbebothawareofthevariousstrategiesalongwithunderstandingtheguidelinesfortheirimplementation.Engineersandmanagersthroughouttheorganizationmakedecisionsconcerningriskseveryday.Providingasetofclearstrategiesalongwithguidanceallowstheentireorganizationtoappropriatelymitigaterisksonadailybasis.«ProblemswithPeristaltic(Hose)Pumps6StepsaMaintenanceProfessionalCanDotoReduceEmail»CommentsPleasesendtutorialsforriskmitigationReplythanksforthesuggestion–wedonotcurrentlyhavetutorialsorshortcoursesonriskmitigation,yetitmakessensetodoso.Inthemeantime,pleasecheckouttheFMEAresourcespageformoreaboutoneofthebasictoolstoidentifyproduct,process,orsystemrisks.Cheers,FredReplyMayIknowthepublisheddateofthisarticlesothatIcanuseasareferenceinmyassignment.Thanksinadvance..ReplyHIEsmat,Sincearticlesonthesiteareroutinelyeditedandupdatedandarenottime-sensitivetopicswedonotpostthefirstpublisheddates–foryourreference,youcanusethe“viewedondate”format.cheers,FredReplyCanyoushareasampleof‘howto’please?ReplyThanksfortherequest–I’lllookintopreparingasetoffour“howto”implementarticlesoneforeachstrategy–maybecombineafew.Anyway,thanksfortherequest.cheers,FredReplyFromyourexperience,whichoneoutoffourriskmitigationstrategywouldyouconsiderthebest?ReplyHiIsrael,Iwouldalwayslookforawaytoavoidtheriskwhenpossible–Avoidance.Designoutthepossibilityoftheriskoccurringorimposingunwantedconsequences.Ariskavoidedisariskconquered.cheers,FredReplyAretheresomemorerisksmitigationstrategiesinadditiontothefourstrategiesabove?ReplyMostlikelythereare–thesearetheonesIamfamiliarwith.Ifanyoneknowsofotherstrategies,pleasechimein.cheers,FredReplyOthermitigationrisksarehedge,riskbuffer,share,findalternatives,DDetc..TheseareotherriskthatIamawareabout.Ifyoufindcontentforanyofthempleaseemailmetheexamples,[email protected]–goodlist,andwhatisDD?doesthatstandforsomething?cheers,FredReplyThecontentisveryusefulandeasytounderstandonriskmitigation.Thanksforthecontent.ReplyLeaveaReplyCancelreplyYouremailaddresswillnotbepublished.Requiredfieldsaremarked*CommentName*Email*WebsiteCREPreparationNotesArticlebyFredSchenkelbergJoinAccendoJoinourmembers-onlycommunityforfullaccesstoexclusiveeBooks,webinars,training,andmore.It’sfreeandonlytakesaminute.GetFullSiteAccessNotreadytojoin?Staycurrentonnewarticles,podcasts,webinars,coursesandmoreaddedtotheAccendoReliabilitywebsiteeachweek.Nomembershiprequiredtosubscribe.×Thissiteusescookiestogiveyouabetterexperience,analyzesitetraffic,andgaininsighttoproductsoroffersthatmayinterestyou.Bycontinuing,youconsenttotheuseofcookies.Learnhowweusecookies,howtheywork,andhowtosetyourbrowserpreferencesbyreadingour CookiesPolicy.CLOSECLOSECLOSE