Risk management principles are effectively utilized in many areas of business and government including finance, insurance, occupational safety, public health, pharmaceutical and by agencies regulating these industries. 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.
Principles of quality risk management
Two primary principles of quality risk management are:
- The evaluation of the risk to quality should be based on scientific knowledge and
- The level of effort, formality and documentation of the quality risk management process should be commensurate with the level of risk.
General quality risk management process
Quality risk management is a systematic process for the assessment, control, communication and review of risks to the quality of product across the product life-cycle. A model for quality risk management is outlined in the diagram. Other models could be used. The emphasis on each component of the framework might differ from case to case but a robust process will incorporate consideration of all the elements at a level of detail that is commensurate with the specific risk.
Assurance Consulting Offers risk management services to businesses and organizations in California, Arizona and Nevada. Our Service areas include the Greater Los Angeles Area, Orange County, Riverside County, San Bernardino County, San Francisco, San Diego, Santa Barbara, Bakersfield, Palm Springs, Fresno, Stockton, Sacramento, San Jose, Las Vegas, Henderson and Phoenix.