Here are a series of quotes we heard from quality leaders we spoke to:
“While a streamlined solution for risk management works, we need something more! We need a risk management tool that can automatically categorize risks by priority and risk levels.”
“Without data at the core, any risk management solution fails.”
“I have noticed this time and again. After a quality event is reported, someone from some other team in the company will come and say – I told you so! Can the risk management solution you implement enable seamless collaboration, communication, reporting – so we can proactively identify and mitigate risks?”
“It’s 2022. We’re all ready for an AI and analytics-powered risk management solution to improve quality performance.”
The point is every enterprise in the world today needs a risk management strategy that is proactive, data-driven and collaborative. It must be designed to make life easier for quality management and/or risk management leaders – presenting data, risk trends & patterns and risk mitigation “suggestions” at the click of a button.
However, ironically, many companies continue to use spreadsheets and e-mails to manage risks – thinking it will work. This approach certainly does not work. In fact, even companies that are using digital and automated risk management solutions to improve quality metrics are struggling to spot risks in time to avoid product recalls, tackle regulatory risks and so on. There is a crying need for a more advanced solution.
But, let’s start with the basics. Risk management involves four steps:
- Identifying the risk
- Assessing the risk
- Mitigating the risk
- Monitoring and reporting of the risk
As a business scales, so does the complexity of assessing the risks to prioritize based on frequency and impact. This prioritization is essential for businesses to mitigate the major risks, establish metrics and measures to monitor them, and track and report the effectiveness of these measures.
While there are many tools and solutions available to facilitate risk management, they often fall short and do not deliver on the promise, leaving businesses vulnerable.
Common Mistakes Made When it Comes to Risk Management
Why do organizations find it difficult to leverage the risk management solution they have implemented to the full extent? Why do they decide to adopt a legacy or manual risk management solution? Isn’t it a no-brainer to go for a modern solution that brings in AI and data analytics capabilities?
In our experience, some of the following factors play a very important role:
- Is It Necessary? The number and nature of risks will vary according to the size and nature of the business. A small or mid-sized company with limited operations may not have to track many risks and a spreadsheet may, in fact, be more suitable. A company with more spread-out business, global suppliers, and complex products may need to automate risk management and needs a solution that can provide visibility and transparency.
- Cost Factor: Calculating RoI for the risk management solution is difficult but essential. Often people choose a dedicated solution for risk management. This may have its advantages, but its biggest limitation is that it cannot be integrated with the rest of the enterprise systems. Therefore, the risks won’t be visible seamlessly across the organization, limiting the benefits. Also, risk management systems need to be upgraded from time to time. This may prove expensive and discourage enterprises from using it effectively.
- Training: However intuitive and easy-to-use, there are some inherent complexities to any risk management software. Therefore, employees require training to use it effectively. If they are not comfortable using it or do not use all the essential features effectively, they are bound to lose interest and the software may fall into disuse. The training has to be ongoing, with every upgrade to the software and every replacement of the user.
- Secure Data Management: As risk management relies on data, providing secure access can be a challenge for some businesses. Any breach of the risk management information systems can compromise the company’s data assets, employee information, customer data, and other important data. This will also make the company non-compliant.
ComplianceQuest’s Risk Management – An Integrated, Secure Solution with Next-Generation AI capabilities
ComplianceQuest’s Risk Management software is an integral part of the Enterprise-wide Quality Management System. As a result, some of the key advantages that improve risk management when using ComplianceQuest include:
- End-to-End View of Data: The CQ Risk Management software provides a holistic view of data from across the enterprise as it integrates seamlessly with other enterprise systems such as ERP, CRM, and SCM. This empowers managers with visibility and transparency into processes, determine areas of potential risk, assess and mitigate them efficiently, and monitor to evaluate their effectiveness.
- Competitive Pricing: CQ Risk Management Solution is a modular, cloud-based solution that can be implemented based on need. It does not require investment in additional resources but instead can be scaled up or down as required.
- Training: The training module is also an integral part of the CQ EQMS and can be used to plan and deliver training based on need. The data available to training managers and others helps assess the unique skills each employee needs for risk identification and management and provides customized training.
- Security: The CQ EQMS aligns with all leading regulations and standards and therefore integrates security features such as authentication, authorization and permission-based access control. This ensures that the enterprise data is not compromised at any point while empowering the employees with data relevant to their needs.
Further, some of the additional features that make ComplianceQuest ideal for risk management, include:
Centralized Risk Registry: All the risks identified are aggregated in a centralized repository at the project, department, or company level. This drives strategic decisions on potential threats with the solution that is aligned with the latest standards (ISO 31000, ISO 14971, ICH Q9 and risk principles in ISO 9001:2015, ISO 13485:2016, ISO 45001 and ISO 14001). It helps to accelerate assessments, identify and analyze risk trends, and drive risk mitigation activities.
AI-Based Risk Identification: The CQ Risk Management Software is an AI and analytics-based solution that helps to spot potential risks based on history and trending data along with key metrics. With embedded intelligence, Quality and risk management leaders can proactively start their risk mitigation efforts before it becomes a major challenge.
One of the key advantages of the CQ Risk Management Solution is that by providing an accurate picture of the risk landscape, it helps stakeholders to prioritize and collaborate on risk mitigation efforts.
Being cloud-based, mobile-ready, risk assessments can be launched from anywhere within the ComplianceQuest platform to analyze hazards associated with any process or activity such as Audits, CAPAs, Change, Customer Complaints, Deviations, Nonconformances, Safety analysis and Environmental impact.
Leaders can establish metrics and leverage CQ Risk Management to track progress, monitor and measure the success of risk mitigation measures. This helps with understanding the ROI of the software and knowing the value derived.
The greatest advantage, perhaps, is that it facilitates risk-based thinking across quality processes, creating a risk-aware culture that improves compliance and minimizes business risks for faster growth and innovation.
To know more about ComplianceQuest’s Risk Management Solution, visit: https://www.compliancequest.com/risk-management/risk-management-software/
You can also watch the Risk Management Solution demo video to understand more: https://www.compliancequest.com/demo-video/risk-management-process/