Risk management in Six Sigma
Risk Management is a continuous process in Six Sigma and has been known to be there in the business terminology since a long time. There is no business venture so far which can be called as totally risk free. The only fact that remains unchanged till now is that we can’t avoid risks but we can mitigate them to the minimum. Risk has two primary elements while describing it the first is the uncertainty associated with any event and the second one is the impact in terms of potential loss.
Risk Management in Six sigma is a continuous process and involves several steps. The Primary step is to identify the risk. This is generally done at the start of almost every project and is revisited during the process of the project several times to check its authenticity. Identification of a risk is very project specific as it has to be carried out keeping in mind the inputs and the processes on which the six sigma project is being conducted.
The next step after risk identification is the risk assessment this assessment can be done to check the uncertainty, impact and the indicator that will signal the onset of the event that has been identified as a potential risk. The impact of the risk can be measured in terms of severity.
After accessing the risk now its time for ranking the risk. A risk ranking can be calculated by sorting the product of the probability of every risk and its corresponding impact. The ranking part becomes an important part of the risk mitigation strategy. Planning is what follows next and a mitigation approach is followed for each risk. It is of utmost importance in a six sigma project that the risk mitigation is lined up to a single team member and a target date is fixed when the risk mitigation tool will be in place. Apart from that it is important to place a contingency plan so that things don’t take an ugly turn in case a risk turns into a problem.
Regular monitoring of the risk mitigation plan is required and the deviations have to be recorded. Following monitoring control measures have to be deployed to reduce the deviation in the risk resolution process. That has been developed. All these steps and strategies have to followed religiously to keep risk at bay and mitigate any problems created by a risk turning into a problem.
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Article Source : http://blog.brainmeasures.com/2011/07/18/the-role-of-risk-management-in-a-six-sigma-project.aspx
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