1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
Dismiss Notice
You must be a registered member in order to post messages and view/download attached files in this forum.
Click here to register.

"Demonstrating" Risk Based Thinking

Discussion in 'ISO 9001:2015 - Quality Management Systems' started by QMSmaster, Feb 8, 2016.

Page 5 of 5
  1. James A Shell

    James A Shell Member

    Joined:
    Mar 29, 2016
    Messages:
    5
    Likes Received:
    0
    Trophy Points:
    1
    Location:
    Varies
    Ah.. " hedging" happens all the time in chemicals and other businesses where the raw material is a traded commodity, like oil. A company will go into the futures market and buy and sell options to reduce the risk of the feedstock going too high and screwing up their profit margins. People hedge on the finished product too.

    A few years ago Delta Air Lines was making more money on hedging than they were on hauling passengers. Trucking companies quite often do the same thing...

    It is a strategy to reduce the risk of an adverse event.
     
    James A Shell, Mar 30, 2016
    #81
  2. Bev D

    Bev D Moderator Staff Member

    Joined:
    Jul 30, 2015
    Messages:
    606
    Likes Received:
    664
    Trophy Points:
    92
    Location:
    Maine
    I would interpret it as in 'hedging your bets' which is way of mitigating the potential loss. This could include having two or more suppliers for the same part/material or creating safety/buffer stock in the case of a delivery problem, etc.
     
    Bev D, Mar 30, 2016
    #82
  3. RoxaneB

    RoxaneB Moderator Staff Member

    Joined:
    Jul 31, 2015
    Messages:
    926
    Likes Received:
    1,081
    Trophy Points:
    92
    Location:
    Ontario, Canada
    I applaud the simplicity, especially as I do tend to be the type to over-think a system, however, are there quantitative criteria for determining high/medium/low risks? From my own experience, leaving it up to people to select risk based on "gut feel", while wonderfully free from complexity, results in subjective risk classifications. What I consider medium, you may consider a low. This then has the possibility of skewing any further analysis down the line due the influence of personal bias in the individual risk classifications.
     
    RoxaneB, Mar 30, 2016
    #83
  4. Eric Twiname

    Eric Twiname Well-Known Member

    Joined:
    Jul 31, 2015
    Messages:
    329
    Likes Received:
    232
    Trophy Points:
    42
    Location:
    Northeast USA
    **Begin high pitched voice**
    I would like....a way to limit my downside....ummm...I mean a hedge....oh, darn...how about just a piece of shrubbery..........or a rabbit.
    ** End high pitched voice and get back to work **
     
    Eric Twiname, Mar 30, 2016
    #84
  5. Bev D

    Bev D Moderator Staff Member

    Joined:
    Jul 30, 2015
    Messages:
    606
    Likes Received:
    664
    Trophy Points:
    92
    Location:
    Maine
    Roxanne - try my resource "FMEA and RPN" I think you will find it interesting.
     
    Bev D, Mar 30, 2016
    #85
Page 5 of 5