In work and in life, success often results from hard work and persistence rather than genius or inborn talent. And while some people are naturals when it comes to crunching numbers, others know you don't have to have all the answers – you just have to know where to find them.
In quality management, making the right choice comes down to having the right tools at hand. In this post, we'll look at 4 critical risk assessment tools all quality professionals should have in their toolbox.
1. Risk matrix
The risk matrix is like your hammer or your screwdriver – it's the tool you'll come back to again and again in a variety of circumstances. A risk matrix is a visual tool that evaluates and prioritizes risks by category based on how likely they are to occur and the severity of their potential impact. It provides a structured way to assign a quantitative value to risks, which enables organizations to determine how to manage each risk according to predefined policies.
One of the biggest benefits of a risk matrix is that it lets you put a quantitative risk value on a hazard, which you can then filter through company policy on how to handle different levels of risk.
How a risk matrix works: Calculate risk as the probability of an event occurring multiplied by its potential impact. A risk matrix breaks these elements into separate scales, assigns numeric values to each level of probability and impact and charts them on a matrix. This visual representation helps identify the overall risk level for each combination.
On a color-coded risk matrix, three categories typically divide risks: low (acceptable) risk, moderate risk and high (unacceptable) risk. This categorization helps organizations decide where they need additional controls to reduce risk to acceptable levels, though it requires management judgment.
2. Decision tree
This structured risk assessment tool uses a flowchart-like format to help decision-makers evaluate various options and predict potential outcomes.
Quality professionals use decision trees less often than other risk assessment tools, but they can still come in handy. It's useful for understanding how to apply policies or choosing between different modes of action.
How a decision tree works: A decision tree maps out a series of questions or choices, each leading to specific outcomes. For example, quality professionals in the food industry might use a decision tree to determine when a hazard requires a Critical Control Point (CCP). You can also use statistics to inform a decision tree to figure out, for example, when it's safe to release a new product.
3. Failure modes and effects analysis (FMEA)
Failure Modes and Effects Analysis (FMEA) outlines all the ways a design, process or product can fail.
How FMEA works: An FMEA chart places the process step or design in question on individual rows, with vertical columns allowing you to map out:
Each potential failure and its cause
The effect on higher levels in the process, assembly or system
Existing controls and detection methods
Any required actions and associated details
4. Bowtie model
The bowtie model is a risk assessment tool that addresses rare but high-impact events. It provides a clear visual representation of the factors that contribute to a hazard, as well as the controls in place to prevent or mitigate it. Developers originally created it for high-risk industries like chemicals and oil and gas, but various industries now use it for its ability to simplify complex risk environments.
How bowtie risk assessment works:The center of the bowtie diagram represents the hazard or loss-of-control event you evaluate. The left side displays preventive controls, which outline measures to stop the hazard from taking place. The right side displays recovery controls, which illustrate how to mitigate the impact if the event happens.