Mandate and Commitment to Manage Risk

Risk Exists; Therefore, Manage Risk

Every organization, business, and individual faces a relentless barrage of risk. Some risks are minor, while others may overwhelm.

We all deal with risk, manage risk, in our own way. For more than just yourself the management of risk is taking on a new level of organization and importance.

Risk exists whether or not we choose to plan, prepare, and mitigate.

The decisions concerning product reliability, and associated risks, require senior management (including the board of directors) engagement and commitment. While there is a wide array of business and societal risks the management team must address, the reliability performance of products and systems presents potentially catastrophic risks to any organization.

Strategic Nature of Reliability and Risk

It is a strategic decision to create a high reliable product within a market. An organization could choose to just meet minimum acceptable standards or position in the middle of the pack. The choice is a strategic one and a decision for the highest levels of management to decide.

Independent of the market positioning, the specter of product recalls due to an unforeseen safety issue presents a common, although rare risk. More common risks include:

• Higher than expected early life failures
• Early wear out impacting…