CPIM - Module 1.5

resilience

the ability to return to a position of equilibrium after experiencing an event that causes operational results to deviate from expectations. Resilience can be improved by increasing the number of response options and/or decreasing the time to execute those options. Resilience is improved by risk monitoring and control.

risk management

the identification, assessment, and prioritization of risks followed by coordinated and economical applications of resources to minimize, monitor and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities.

Risk Management Process

Failure Mode and Effects Analysis (FMEA)

analysis in order to identify and rank potential risks. On 3 scopes: probability of failure, degree of severity, likelihood of escaping detection. Risk Priority Number (RPN) is assigned.

How to prevent failures?

• Design out fail points

• Build in redundant system

• Use failsafe work methods

• Maintenance

• Mitigate risks

Recovering from failures

1. Discover

2. Act

3. Learn

4. Plan

Risk Matrix

Tool used to group the risks into corresponding groups based on Magnitude of Impact (High-Low) and Probability of Occurrence (High-Low)

4 approaches to manage risks

Risk acceptance

Risk avoidance

Risk mitigation

Risk transfer

redundancy

used in risk mitigation term as a backup capability… to reduce the effects of breakdowns

contingency planning

a process for creating a document that specifies alternative plans to facilitate project success if certain risk events occur.