The goal of using this template is to capture a snapshot of the current process steps & their associated risks. The tool shows you what process steps could have a significant negative impact on the performance of the business. The tool enables facilitates corrective action planning to mitigate the risks & present the new risk outlook.
Brief description of the process step (providing clear identity of the step for all the team)
Potential Failure Mode
What is the direct result if the process step fails?
What is the potential impact to the rest of the process or business if the step fails?
What is / are the possible contributing factors to the process step failure?
What controls (if any) are currently in place to prevent a process step failure?
Severity, Occurrence, Detection
How big is the impact? How often does it likely occur? What chance of detection is there?
Severity & Occurrence rate as (1 = low, 2=medium, 3 = high). Detection rate as (1 = high, 2=medium, 3 = low, ie. 3 = low likelihood of detecting the failure)
Risk Priority Number (RPN)
This is calculated by multiplying the value assigned for Severity x Occurrence x Detection.
RPN Range 1-4 = low risk, 6-8 = medium risk, 9-27 = high risk,
Action Planning, Owner & Date
Clearly describe the corrective action being taken, assign one owner to the task (always only one owner!) & the deadline. Track the status.
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