Presentation given by Dr. Rune Moen from DNV at the annual conference of the Norwegian Society for Quality and Risk Management. The presentation focuses on how to integrate Quality and Risk Management, and how to make the integrated management system operational.

1. QM & RM – making it work together
Kvalitetsdagene 2012

2. Det Norske Veritas (DNV)
identify
assess
manage
risk
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3. Who am I?
Rune M. Moen
Senior Principal Consultant
Det Norske Veritas
Tel.: +47 95 14 92 21
Mail: rune.moen@dnv.com
Ph.D. within Quality Management
20 years consultant and line manager experience from Norway, Germany and
the Netherlands
Competence within Strategy and Organisational development, Risk
Management, Quality and Process Improvement
PMP certified project manager for several large projects within
- Risk Based Management System development
- Independent quality assurance of large investment projects
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4. Objectives of this session
How to combine Risk Management and Quality Management
principles and systems to improve corporate governance
How to understand and create barriers to reduce risks and
improve process performance
How to make this work in day-to-day business
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5. Reality for some – can it be you?
December 15, 2004 - Planemaker Airbus's A380
superjumbo project is running 1.45 billion euros ($1.93
billion) over budget because of work to improve the
efficiency and weight of the aircraft, the co-head of parent
company EADS said. Total costs for the mammoth
doubledecker are currently estimated at over 12 billion
euros.
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6. How to ensure quality?
Management processes
Development Purchasing Production Storage Sales Distribution After sales
Support processes
Likelihood
Priorities
Concequence
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7. Good corporate management - planning ahead
Threats &
opportunities
Objectives
Decisions
Processes
Results
Quality Management Risk Management
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8. IMPLEMENTATION
PLAN
ACT OBJECTIVE DO
CHECK
Five steps to
good Corporate
Management
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9. External sources of Risk
Rules &
regulations
Reporting New laws
Morals Liability
Responsibility Ethics
Clients Audit
& Market
Customer loyalty Brand
Market share Trust
New products
Profitability
Competition
Contracts Suppliers
Margins
Pricing & Partners
Conflict of interest
Competition Loyalty
Exchange of information
Hidden agenda
Trust
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10. Internal process Risks
Risk = Threats & Opportunities Processes Description Process Owner
Process 1
Process 2
Process 3
…….
Process 1 Consequences
Risks Potential causes Probability FIN REP HSE
Risk 1
Risk 2
…….
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11. Risk radar
Inadequate management system
Unclear roles and responsibilities
Lack of facility maintenance Budget reduction
injuries reduced service quality
Management
&
Control
Unstable IT systems Tight labour market
Loss of critical data lack of competence
Processes
&
Activities
Key supplier go bankrupt Customer expectations unclear
Delay in production Customer complaints
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12. IMPLEMENTATION
PLAN
ACT OBJECTIVE DO
CHECK
Five steps to
good Corporate
Management
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13. Risk analysis and follow-up
Risks assessed against business objectives
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14. IMPLEMENTATION
PLAN
ACT OBJECTIVE DO
CHECK
Five steps to
good Corporate
Management
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15. Prioritisation and treatment strategy
• Preventive measures reduce
the likelihood of the event
• Corrective measures reduce
Treat consequence of the event
Preventive
Likelihood reducing
• Contract
• Insurance
Transfer
High
R5
R36
LIKELIHOOD
Medium
R5
• Eliminate risk by stopping activity
• Avoid operations within an area
Low
Terminate R36 R36
Low Medium High
CONSEQUENCE
• Accept risk
• Continue like before no change
Tolerate to activities Corrective
Consequence reducing
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16. IMPLEMENTATION
PLAN
Understand what to manage ACT OBJECTIVE DO
Causes Effect CHECK
Top
Event
Immediate Immediate
Causes Effect
Final
Underlying
Effect
causes
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17. Elements in a well functioning risk framework
Risk reporting and communication
Risk Policy Risk approach Risk structure
(strategy, goals, acceptance) (identify, analyse, evaluate, treat1) (roles, mandates, responsibilities)
Supports System - Tools
Culture, skills and competencies
1) Ref. ISO standard 31000
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18. How to make the framework operational
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19. Spreadsheets versus ERM software?
…Spreadsheets can only take us so far! Simultaneous data entry
Automated e-mail notifications
Reports with history and statistics
Accountability and traceability
Role-based
Handles complex information relationship
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20. Sample interface - EasyRisk Manager™
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21. Success factors
Proportionate
Aligned
Comprehensive
Embedded
Dynamic
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22. Safeguarding life, property
and the environment
www.dnv.com
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