Case Study of a Large Manufacturing Organization

Business Unit of Global Manufacturer

The client team applied its new risk management knowledge to obtain a clear picture of its operational risks. The management team gained assurance that the organization's main operational risks were under control.


The Situation:

After experiencing an industrial workplace incident that resulted in injury to an employee and a sizeable fine, a large manufacturing company was ordered by a regulatory agency to conduct an assessment of its health and safety risks. The manufacturer decided to extend this assessment to all operational risks including potential impacts on health, safety, environment, liability, and commercial results. The client wanted to take a more proactive stance to risk management. To do this they knew they needed to improve their management processes, structures and skills. They also knew they needed a strategy and a plan to implement systematic risk management.

What we did:

Risk Wise applied its Risk Management Diagnostic tools in a one-week risk management training and assessment workshop. To ensure that the client's specific request for occupational health and safety (OHS) risk advice was met, Risk Wise partnered with a team of OHS specialists from the Industrial Accident Prevention Association to deliver the training and to conduct the subsequent implementation support. The Risk Management Diagnostic and training program was delivered by a Risk Wise mentor to a core client team of executives, managers and employees representing key operational functions. The client team received training on practical tools to: assess risk; gauge risk tolerance; assess the effectiveness of individual risk controls; assess the effectiveness and maturity of the company's risk management function in general, and evaluate proposed enhancements to its risk management structures and practices.

The client team also developed risk management skills by actually applying these tools to their operation, while being coached by a Risk Wise mentor. Risk Wise and IAPA also provided a plan for systematically managing operational risk.

Results:

The client team learned the fundamentals of risk assessment and risk management. The client team applied its new risk management knowledge to obtain a clear picture of its operational risks. The management team gained assurance that the organization's main operational risks were under control. The client developed an understanding of how well its current risk management practices were performing and found out exactly where the strengths and weaknesses were in its risk management processes. This deepened understanding enabled the client team to develop action plans that addressed its key drivers of risk and of risk management performance. With Risk Wise advice, the client team opted to efficiently integrate risk management principles into its existing management processes (i.e., Six Sigma and Quality Management), thereby saving time, money and effort that would have been squandered in developing a separate layer of management control for risk. The Risk Management Diagnostic successfully transferred knowledge and skills which developed the client's capability to evaluate and improve, on an on-going and sustainable basis, their operational risk management performance. With risk assessment and risk management practices firmly entrenched, the client organization easily passed the certification process for ISO registration.

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