Mastering Risk Management

BUSINESS OPTIMISATION

Risk management is not just about avoiding losses or reducing their effect. It is also about finding opportunities for business benefit and continuous improvement. Risk management can be used as the groundwork for Six Sigma and Lean management approaches, as shown in Figure 2.1. The just-in-time method of management relies on properly identifying, measuring, monitoring and managing supply chain risks which are part of the universe of risk. In addition, quality circles rely on full and informed risk management, as does total quality management.

Figure 2.1 Interaction of risk management and Six Sigma and Lean management approaches

Source: Courtesy of RiskLogix Solutions Limited

The concepts of process improvement and business ...