Christian Harris hosts Professor Hernan Huwyler, Head of Risk at Milestone Systems (part of Canon), to discuss risk management and the limitations of qualitative risk management techniques, such as heat maps. This was a recording of a Safety Roundtable (www.safetyroundtable.co.uk) session, attended by 100+ safety and risk professionals.
Highlights:
- Hernan highlights the popularity of heat maps due to their simplicity, but also points out their pitfalls and limitations.
- What are the benefits of data-driven risk assessment include speaking the language of business, understanding different scenarios, minimizing biases, and adhering to ISO standards.
- Hernan discusses the issues with heat maps, such as the inability to aggregate risks, discretional values, and lack of clarity on scenarios being assessed.
- He proposes an alternative method, which involves using available data, generating and normalizing data, and creating a model to predict future risks and their costs.
- This data-driven approach enables better decision-making and planning, as well as providing a clear picture of causes and consequences.
- Hernan emphasizes the importance of being a data-driven professional in the risk management field.
- He shares a methodology and an Excel model to try out yourself
- We take views from attendees of the Safety Roundtable about the topic of ditching heat maps and quantifying operational and safety risks instead
Resources:
Connect with Hernan on LinkedIn: https://www.linkedin.com/in/hernanwyler/
Connect with Christian on LinkedIn: https://www.linkedin.com/in/christian-harris-slip-safety/
Download Hernan's slides and the Excel model (N.b. this is a basic, user-friendly model): https://www.linkedin.com/smart-links/AQEdJAs_XDFGvA
Actions:
1) Use the model and feed back the results on LinkedIn, @ tagging Hernan and Christian to discuss the results
2) Support the podcast: follow, like, comment, share etc!
3) Attend a future Safety Roundtable, every other Wednesday at 12:30pm
#safety #RiskManagement #insurance #OperationalRisk #ISO31000 #SafetyRiskSuccess
