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IMPROV Risk
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Webinar Protocol
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your questions until the Q&A session, which will be conducted at the end of the presentation.
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We look forward to your active participation!
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Webinar on
Risk Management made easy
for Materials Professionals
Subject Outline
Case study of ISO 31000 adoption at Suppliers of Oil & Gas OEM
Tiered ecosystem of materials and a scenario to Discuss
Overview of Risk Management ISO 31000:2018 Framework
How to integrate ISO 31000 with your existing practices
Key techniques and templates
Case study for live discussions
Q&A
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Poll Question
Which area do you associate most with ‘risk’ in your work?
• R&D and testing
• Manufacturing process
• Supplier quality
• Regulatory compliance
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Case Study 1
A global Oil & Gas OEM producing pressure vessels and subsea components relies on a
tiered ecosystem:
Results After One Year
Tier 1: Metal mills (forging ingots, high-strength alloy plates)
Tier 2: Component manufacturers (rings, flanges, pressure vessel shells)
Tier 3/OEM: Assembly, welding, testing, and final certification • 67% reduction in heat-treatment related
defects
The OEM faced repeated issues with variability in material toughness values and
weldability during long-term sour service applications. • Zero alloy composition deviations
• Lead time for quality approval reduced by
Trigger for ISO 31000 Implementation
30%
A catastrophic weld failure occurred during hydrostatic testing of a large subsea • OEM adopted ISO 31000 formally into
component.
supplier qualification
Investigation revealed: • Tier 1 & Tier 2 suppliers began integrating
Chemical composition drift in alloy plates due to variation in ore batches (Tier 1)
Inconsistent heat-treatment cycle parameters at a Tier 2 fabricator risk thinking into daily operations
OEM’s incoming inspection did not include low-temperature impact testing for certain
batches
This resulted in:
4-month delivery delay
$3.5M cost due to rework
Potential loss of a major EPC client
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Tiered ecosystem of Materials
Final Product • Extended timelines
Org • Material quality issues
• Increased cost over period of time
Direct Suppliers
Providing • Excess inventory
component of • Production halts
Final Product • Stockouts
Supplier to Tier 2 • Natural disaster
Providing materials or • Financial issues
service • Quality control
Risk Originates here more often due to lack of
Supplier to Tier 2 visibility and control by final organisation
Raw material
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Poll questions
Which tier do you interact with most in your role?
• Raw material supplier
• Component manufacturer
• OEM / Customer-facing
• Testing / Certification
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Scenario to discuss
A rare-earth supplier in East Asia suddenly stops production. An electronics manufacturer faces a 3-week
production delay.
Questions:
• What are the primary risks (technical, operational, reputational)?
• What risk treatments are possible? (dual sourcing, stockpiling, design alternatives)
• How do you track and monitor such risks over time?
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Why Risk Management Matters?
Materials failures → high cost, safety issues
Supply chain disruptions → delays, penalties
Testing variability → compliance challenges
Lack of information → Poor decision making
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Key Success Factors for Matured Risk
Management Practices
• Leadership sponsorship and risk-aware culture
• Unified terminology and templates across departments
• Regular communication and visibility to decision-makers
• Ongoing training and maturity assessments
• Linking levels – Strategic, Tactical and Operational
• Continual Process improvement
• Tools & templates matter
• Tailoring is essential
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Overview of ISO 31000
A global standard providing principles
& guidelines for managing risk.
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Integrate ISO 31000… don’t replace existing practices
How to integrate ISO 31000 (Risk Management) and ISO 9001 (Quality
Management)?
ISO 31000
& ISO 9001
Lab QA
Systems
• Unified Risk Assessment – ISO 31000 as single methodology for all
IATF16949
Objectives as defined in ISO 9001
• Address threats as well as opportunities – Threats to quality and
improvement opportunities both can addressed using ISO 31000
Enterprise wide robust and • ISO 31000 can manage inherent risks, residual risks and secondary
scalable Risk Management
risks to overall quality management objectives
• ISO 31000 and ISO 9001 both drive the continual improvements
addressing the quality issues and process optimisation
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Key Techniques and Templates
Define context & Identify threats and Prioritise Assess Plan Implement Review
objectives opportunities risks and
adapt
Balanced scorecard X X
Benefits mapping X
Cause and effect diagrams X X X
Generic risk responses X
Horizon scanning X X
Individual assessment X
Johari window X
PESTLE analysis X X
Risk breakdown structure X X
Risk Matrix X X
Swiss Cheese model X
SWOT analysis X X
Trend reporting X
Maturity assessment X
Sizing contingency X
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Risk Responses
making an uncertain situation certain
by removing the risk. removing the
cause of a threat, or by implementing Threats Opportunities
a factor that leads to an opportunity.
Avoid Exploit
Making the threat less likely
to occur or reduce the impact
if it occurs. Making the Reduce Enhance
opportunity more likely to
occur or increase the impact
if it did occur. Transfer aims to impart part of the risk to a third party.
it seeks for multiple parties, typically within a supply
Share chain, to share the risk on a pain or gain share basis.
the business ‘takes the chance’ that the risk will
Accept occur, managing its full
impact if it did.
preparing plans but waiting to take action. Prepare contingent plans
Reference from PRINCE2© v7 by Axelos 16
Key Risk Techniques – Swiss Cheese Model
Reference from M_o_R © v4 by Axelos 17
Key Risk Techniques – Stakeholder Analysis
Reference from M_o_R © v4 by Axelos 18
Key Risk Techniques – Johari Window
Reference from M_o_R © v4 by Axelos 19
Key Techniques and Templates
Risk Register Template Implementation Roadmap
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Poll Question
Which tool/technique do you currently use most often to
manage risks?
• FMEA
• 8D Reports
• CAPA System
• Excel/Manual tracking
• Other
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Case Study 2
A shipbuilder specializing in high-speed ferries uses complex composite materials for hulls
and superstructures. The ecosystem involves:
Tier 1: Resin manufacturers, fiber suppliers Results After Nine months
Tier 2: Composite panel fabricators
Tier 3/OEM: Shipyard assembling hull sections
• Reduction of composite panel defects by
The shipbuilder faced unpredictable quality issues with delamination and incomplete 72%
curing of composite panels.
• Improved consistency of cure profiles
Trigger for ISO 31000 Implementation • Faster certification from classification
During final inspection of two ferries, ultrasonic tests revealed extensive voids and weak society
bonding in composite panels. Root cause investigation showed: • Stronger supplier relationships due to
• Tier 1 resin supplier altered the curing accelerator due to REACH compliance changes
(uncommunicated to Tier 2) improved risk visibility
• Tier 2 panel fabricator had inconsistent vacuum bagging parameters • ISO 31000 adopted as central framework for
• OEM skipped random destructive tests due to pressure to meet delivery timelines
• Environmental conditions (humidity) were not monitored adequately all material-related decisions
This led to:
• 6-month project delay
• Full stripping and refabrication of panels
• Negative audit report from classification society
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Q & A, Open Discussion
This is the time for:
- open discussions and questions
- your own scenarios, examples to discuss
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Contact us :
IMPROV Consulting and Knowledge Solutions Pvt Ltd
info@[Link] | 9004 532 946
To know more about us visit our website :
[Link]
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