Navigating Challenges and Risks in Today's Complex Environment

In our increasingly complex world, challenges are omnipresent across all facets of life, including at work, at home, and within the broader society. Gaining a thorough understanding of the underlying causes of issues within workplace processes, systems, products, and services is fundamental to resolving them effectively.

My professional journey has been marked by a commitment to impart knowledge on preventive strategies to both teams and organisations, demonstrating that a proactive approach to risk management can significantly boost productivity and efficiency. This proactive stance not only addresses immediate problems but also establishes a solid foundation for continued operational success.

Despite advancements, it is evident that many businesses continue to face critical issues that result in product recalls, injuries, and even fatalities, leading to severe financial penalties and, in some cases, incarceration. This indicates a persistent failure to implement lessons learned, highlighting the need for continuous improvement in risk management practices.

Learning from Setbacks: An Analytical Review of Global Business Challenges

Case Studies of Business Failures, recalls, incidents, issues from Australia and around the world.

Volt Bank : Despite being the first Australian neobank licensed in 2019, it closed in 2022 due to financial shortfalls.

Delivr : As a local food delivery service, Delivr initially saw success during the COVID-19 pandemic due to increased demand for delivery services. However, the lack of drivers and high operational costs compared to bigger, international rivals led to its downfall

Automotive Sector

Takata Airbag Recall : Airbags produced by Takata could explode upon deployment, sending metal shrapnel into the vehicle cabin. Over 100 million vehicles were recalled, resulting in at least 27 deaths since 2009 and hundreds of injuries worldwide. (Vehicle Recalls – Australia )

Healthcare Sector

Boston Scientific to pay $188.6M to settle mesh claims in 47 states : Surgical mesh caused severe complications, including chronic pain and infections, leading to massive legal settlements.

General Engineering Sector

Hyatt Regency Walkway Collapse : Walkways in the Hyatt Regency hotel collapsed in 1981, resulting in 114 deaths and over 200 injuries, making it one of the deadliest structural failures in U.S. history.

BP Deepwater Horizon Oil Spill : The explosion and sinking of the Deepwater Horizon oil rig in 2010 caused the largest marine oil spill in history, resulting in 11 worker deaths and extensive environmental damage.

These examples underscore the importance of rigorous risk assessment, thorough testing, and proactive management to prevent such catastrophic failures across various sectors.

Understanding Issues & Problems

It’s not a perfect world, and issues are bound to occur for various reasons. Some common causes are:

1. Insufficient Management Support: Without strong leadership backing, issues can arise from a lack of authority and resources.
2. Poor Planning and Resource Allocation: Inadequate financial, human, or technological resources can lead to ineffective solutions.
3. Ineffective Risk Assessment: Overlooking potential risks can compromise solutions.
4. Rushed Implementations: Launching without adequate preparation can lead to costly failures.
5. Non-compliance with Regulations: Ignoring legal requirements can result in ineffective and illegal solutions.
6. Ignoring Lessons Learned: Failing to use past data can lead to repeated mistakes.
7. Human Error: Errors due to inadequate training or supervision.
8. Poor Communication: Miscommunication can cause delays and errors.
9. Equipment Failure: Malfunctioning technology can disrupt processes.
10. Supplier Issues: Problems with suppliers can impact product quality.
11. Design Flaws: Inadequate design can lead to operational issues.
12. Environmental Factors: External changes can disrupt operations.
13. Regulatory Compliance Issues: Non-compliance can lead to serious consequences.
14. Lack of Process Controls: Without robust controls, processes are prone to errors.
15. Organisational Culture: Cultural resistance can hinder quality improvement.
16. Incompetence: Insufficient training can lead to execution errors.

Enhancing Compliance and Risk Management

Launching new projects requires comprehensive risk assessments, utilising standards like ISO 31000:2018, and tools such as FMEAs and SWOT analysis. Prioritising risks based on severity and occurrence, and securing strong leadership support, are crucial for success.

When initiating a new project, product development, or process—especially for the first time—it's essential to conduct a thorough risk assessment. Utilising expert advice, the experience of team members, and cross-functional involvement is key. Employing standards like ISO 31000:2018 and tools such as FMEAs, SWMS, and JSAs, along with techniques like brainstorming, Ishikawa diagrams, and SWOT analysis, can help identify potential risks and hazards. This process allows the team to prioritise risks based on factors such as severity, detection, and occurrence, helping to establish a well-documented process with robust measures and controls. Strong leadership support significantly enhances the likelihood of achieving conformance, compliance, and meeting the specified requirements.

This approach is applicable across all industries and businesses and is an effective way to prevent failures in processes, products, projects, etc. However, businesses, industries, and individuals frequently face day-to-day issues and problems. So, how do we address these issues and prevent them from recurring?

Solving Day-to-Day Issues

A systematic approach can help organisation to effectively address problems, prevent recurrence, and drive continuous improvement. It's essential to involve stakeholders at all levels, communicate transparently, and foster a culture of accountability and collaboration to ensure the success of problem-solving efforts.

1. Use a Team: Involve experts for new perspectives.
2. Identify the Problem: Clearly define the issue and gather data.
3. Develop Interim Containment: Isolate the problem temporarily.
4. Analyse Root Cause: Use methods and techniques like the 5 Whys, Ishikawa, deep-drill, A3 Problem Solving etc.
5. Develop & Implement Correction: Address immediate issues, act promptly and assign responsibilities.
6. Verify Effectiveness: Monitor and measure results.
7. Prevent Recurrence: Implement long-term solutions.
8. Develop Corrective Actions: Address systemic issues to prevent future recurrences.
9. Monitor and Review: Continuously track effectiveness.
10. Continuous Improvement: Learn from problem-solving efforts.

Proactive risk management allows us to identify potential issues early and implement measures to prevent or mitigate them. By taking a proactive approach, we can enhance resilience, reduce the impact of problems, and improve overall success.