Risk Based Thinking

http://www.qualitymanagementsystemshq.com/?attachment_id=137

2014

The first thing comes in mind what is Risk based Thinking? To answer this
question I will start with Risk. As per definition of Risk:

Risk is the potential of losing something of value. Values (such as physical

health, social status, emotional well being or financial wealth) can be gained
or lost when taking risk resulting from a given action, activity and/or
inaction, foreseen or unforeseen.

Risk can also be defined as the intentional interaction with uncertainty.

Risk perception is the subjective judgment people make about the severity
and/or probability of a risk, and may vary person to person. Any human
endeavor carries some risk, but some are much riskier than others (Reference:
http://en.wikipedia.org/wiki/Risk)
International Organization for Standardization also defined Risk as below:

The ISO 31000 (2009) / ISO Guide 73:2002 definition of risk is the
'effect of uncertainty on objectives'.
In this definition, uncertainties include events (which may or may not
happen) and uncertainties caused by ambiguity or a lack of information.
It also includes both negative and positive impacts on objectives.
Many definitions of risk exist in common usage, however this definition was
developed by an international committee representing over 30 countries and
is based on the input of several thousand subject matter experts.
(Reference: http://en.wikipedia.org/wiki/Risk#International_Organization_for_Standardization )

Whenever we heard of Risk, a negative thought/ sense come in our mind. And,
whatever we do in our professional or personal life, we always consider risk. We
also consider the best ways to avoid risk such as wear helmet while driving
bike, wear safety belt while driving cars, ensure everything is ok before
departure for a long journey etc etc
We generally do risk based thinking automatically and sub-consciously to get
desired results. ISO always implicit upon the risk subject and this new revised
ISO/DIS: 9001-2015 standard has made risk a more explicit and widely
adopted in whole quality management system.

Risk based thinking focus upon the consideration of risk from the beginning
to the end of the processes within process approach model. This thinking
methodology has made preventive actions as a part of the strategic planning
within whole QMS.
Risk has two sides like a coin. If one side is a negative sense then other side is
an opportunity to identify those negative senses to take action and improve
them.

ISO emphasized upon Risk to identify opportunities to prevent the risk and
its effects before implementing an effective quality management system.

How Organization can use Risk Based Thinking

If an organization can identify the risks within their processes, businesses,
productivity, quality, design and development and even in supply chain, they
can identify opportunities to prevent or reduce the risks which converts into
improvement after successful implementation of actions and hence profit to the
organization.
Thats the reason preventive action clause is removed from new ISO 9001-2015
standard and Risk Based thinking automatically directs organizations to take
preventive actions automatically and subconsciously.