DEVELOPING A PROCESS-BASED SYSTEM TO MANAGE RISK

Interested Parties Your organization Process Department Chief System Manager Process Owner Team Managers Executive Suppliers

1. Identify the sequence and interaction of key processes in the system 2. Define key processes sufficient for effective planning, operation and control

Broadly prioritize the operational risks based on SWOT analysis (see page 2) Require development of the management system so it can be used and improved to fulfill renewed objectives

Determine/update the objectives for and scope of the management system

A CORE PROCESS IS: A. The value stream that runs from needs of interested parties to receipt of cash or funding CORE PROCESS FLOWCHART (CPF): B. Describes the interactions of your organization with interested parties and suppliers DO YOU HAVE MORE THAN ONE CORE PROCESS?

Analyze the core process showing interactions per A. and B. (see yellow note on left)

CPF

CPF

Review Core Process Flowchart for accuracy (each business unit has its own Core Process) N Y Identify key processes and assign process owners (see C. & D. right) Brief process owners to determine the objectives of their processes

Accurate?

KEY PROCESSES EITHER: C. Add value (within the Core Process) D. Enable the Core Process to add value

Determine objectives for key processes (some may come from PFMEA - see E. on right below)

Analyze each key process showing customer/dept or job title/supplier interactions (see F. below)
FOR COMPENTENCY IN PROCESS ANALYSIS: Ensure the System Manager, the Process Owners and Department Managers are trained system auditors (including process analysis)

Key Process Flowchart (KPF) Review key process flowchart (as-is for accuracy, new for feasibility) N Y Accurate/Feasible?
LEVEL OF DETAIL E. Use PFMEA to determine level of detail for mission critical processes and controls. F. Must be sufficient for competent people to plan, operate and control process.

Prepare CPF and KPFs ready for issue, use and continual improvement N Y Describe how the system works in a slim system manual Post manual and flowcharted procedures linked to instructions and forms Approve?

Learn any new processes, use and improve the system to fulfill objectives

ATTACHMENT 4 - Page 1 of 2 2008, Quality Management International, Inc. (All Rights Reserved)

DEVELOPING YOUR RISK MANAGEMENT SWOT ANALYSIS WORKSHEET

SYSTEM

Strengths:
What does your organization do well? What unique resources can it draw on? How do customers think of your organization?

Weaknesses:
What products/processes could you improve? Where do you have resource limitations? What controls are lacking?

Opportunities:
What excellent opportunities are open to you? What trends could benefit your shareholders? How can you turn your strengths into opportunities?

Threats:
What trends could harm your organization? What is your competition doing? What threats do your weaknesses expose you to?

Page2of2
CrossfunctionalteamoffiveleaderseachwritesthreeSWOTsineachbox,thenpassestheirsheettotheleft untilitcomesback;beinfluencedbywhatothershavewritten.Consolidateresultstodeterminemajorrisks. Inputthisriskcontexttoplanthedevelopmentofyourriskmanagementsystem(seepage1).