THE BEST RISK MANAGEMENT METHODS FOR THE MANUFACTURING INDUSTRIES-DETAILED ANALYSIS

Abstract

In a manufacturing process consideration needs to be given to the potential risks associated with ongoing day-to-day activities. Risks can arise due to the nature of the materials in use, the equipment, the people, etc. Depending on the individual perspective the focus of a risk management program can be to minimize injury to staff, to customers, or to the local community. To deal with these risks, an organization needs to implement an appropriate risk management process, which is what this paper aims for. In this connection, we have developed a conceptual model that describes the generic approach of risk assessment and outlines the gaps in the assessment steps that may hinder the successful implementation of risk management. Whatever the reason for wanting to understand and control risks, in every manufacturing process there will be a need for comprehensive risk identification, risk assessment, risk measurement, risk minimization, and risk monitoring program. Such a program will need to encompass all aspects of the business to ensure all key areas of risk concern are captured.