All the new international standards talk about risk-based thinking so what we're
going to do here is a quick example some practical tips and tricks on iso 9001
risk-based thinking and how it applies to a process. Stay tuned.
so we've had a question for one of our great subscribers out there and thank
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we've had a question or one of the comments below one of our videos to ask
for some more in-depth understanding and some more practical examples around how
to apply risk-based thinking to a process so what I'm going to do is do a
quick example for you here across the whiteboard to give you some thoughts
around how to frame it up so the first obviously is process steps and if you
think about this is the service industry and you think about your customers so
you've got customer check-in you've got service provision and you might have
the financial part or the customer payment and you can make your
process steps much more detailed so under obviously the customer check-in or
the service provision the work that you're doing you're going to have a few
more steps 2 or 3 but we're going to keep it really simple
so we're doing a table we're going to turn this obviously into a risk register
if you like and what we're starting to think about is what are the things that
could go wrong so let's call them risks and I like to start when we're thinking
about risks with what could upset a customer so at the customer check-in
over here in any business it could be the weight it could be can't get in
contact it could be anything around customer check-in process which could be
not right service not correct service so what we're starting to do is okay these
are all the sorts of things adding point that we could upset the customer in the
service provision there might be things that while they won't immediately upset
the customer they could be something wrong so it could be you know it could
be breaking the law so you might be breaking a law or a standard or a breach
or a non-compliance but the customer won't know about it so you know house
could be incorrectly built for example the customer is living in the house they
won't know that the house has been incorrectly built you know if you're
builder so there's breaking the law there's are industry standards so are
there any basic industry standards that your service needs to comply with like
ISO standards for example and then there's the other parts of the service
provision which is you know anything that relates to you know time you know
and lead times you know customers taking too long it's taking too long
could be costs could be you know how the service is provided so anything here
that's going to make your customer feel violated and then obviously in the
customer payment you know is there anything in terms of how we charge apart
from obviously the price but how we charge that might upset the customer
like for example the customer standing there with the credit card ready to pay
you but you didn't tell them upfront that you don't accept credit cards so it
could be payment method it could be terms so for example some customers and
particularly in the business-to-business space lots of customers used to you know
30 60 90 day terms and you give them an invoice it says Co D so you're a factory
you're manufacturing stuff and the customer can't have their equipment
until they pay for it and it needs to be paid for to be released but that wasn't
talked about upfront and then what we do is we start to prioritize these things
and to keep this really simple I won't go into risks in this video we say low
medium or high so of each of these things here are they a low medium or
high risk and so how and you could you could use a measure here that says well
how upset will a customer be well if they've got a weight they'll be low not
very upset but if they can't get in contact it could be high but if a
customers can get in contact with you it could be a business not the correct
service that's obviously high because they're not going to pay you to
something that in one breaking the law that's high industry standards that's
maybe medium time maybe that's low cost that's low potentially payment method
might be low I'll still figure out how to pay payment terms might be high so in
risk-based thinking about a process here we can start to understand that we've
got some you know the process steps if we like down here we've got our risks up
here and then we've got our rating now I'm not going to go any further into
this if we added another column over here and I run out of space because
we've got this great best practice branding for all the ISO standards that
we do so we're talking about quality assurance here in this example but
there's other types of risk management standards environmental management data
security OH&S up there if we were to extend this spreadsheet over here we
would add our controls and if you've watched any of other our other YouTube
videos in this column and it's that obviously applies to all of these all
the way down in this column we're talking about who what when where how
why because we had a process step that had a potential issue that could go
wrong and this is all about risk based thinking preventive strategies so things
don't go wrong so I hope you liked the video don't forget to hit subscribe to
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