Define and master risks for your company

Your company may not yet have suffered any significant production breakdowns, recalls or other external difficulties. However, even the most optimistic can never rely on a streak of good fortune. Clearly, good management should be based on the analysis and assessment of exceptional risks. The best opportunity to revise the current processes of the management system is always to identify risks and take necessary measures to reduce the risks, for example by means of internal audits. This work is worthwhile not only in terms of recertification, but for the overall strengthening of the company. As Nassim Nicholas Taleb already points out in his book "The Black Swan", the impossible should be thought, evaluated and analyzed. The risks, which are usually hardly considered, lie on the one hand with suppliers and on the other hand with the administration. I am thinking of the recalls of several thousand cars due to the installation of faulty components or massive costs due to inaccurate passing on of customer wishes to production by the sales department.

Black swans

In which companies is the safeguarding of know-how in electronic systems included in quality and risk management, and in which companies are currency risks included? There are risks in many interfaces between upstream and downstream processes. For example, even partial products or information of insufficient quality may not meet the requirements of the next work process. Such hidden "particles" could overstretch stringently budgeted costs for post-processing. Therefore, it is worth paying special attention to such intermediate areas. Innovations and improvements are often born out of necessity, but a planned approach can exploit any potential and meet customer requirements far better. Intensively dealing with risks also helps to discover opportunities.

Conclusion

The management is responsible for the success of the company and the preservation of jobs. Fortunately, production risks and their prevention are currently very present and well monitored. However, effective, credible risk management must also be able to incorporate all dimensions of the risks of extraordinary events into the corporate strategy in good time. Likewise, it would need to define an appropriate course of action when an unforeseen event occurs - in order to initiate the right measures in good time. Events such as environmental disasters, but also the sudden loss of the main customer due to currency distortions unfortunately usually occur unexpectedly.

Appeals for political support, financial contributions from the public or even the next shift of jobs to low-wage countries do not testify to responsible leadership, but clearly show entrepreneurial neglect.

Serious attention to the production and risk handling processes promotes conscious continuous improvements of products and services in depth. Advantages: In addition to efficiency increases, you achieve the awareness of all employees to reduce risks and find solutions. On the occasion of targeted employee discussions, the training of possibly missing competencies can also be agreed upon. Only a consistent and process-oriented quality management system supported by the management can guarantee the achievement of budgeted margins and also prevent unforeseen damage to the company's image. In order to relieve top performers, one could otherwise invest in corporate security or in external specialists for management systems.