Risk Management

Risk Management is not only about finding and minimizing potential problems, but accepting the reality of risk in pursuit of opportunities.

When is it advantageous to take a risk?

Example: If an early prototype is redesigned to add a new feature, the extra complexity might overheat the electronics in the existing shell, or the plastic around the new buttons could warp in the updated tool.

Result: Either it works, or the prototype design is modified. The cost is time and new tooling. The alternative is to avoid making any changes.

Verdict: Acceptable risk.

Now imagine the same scenario in the middle of mass production. Is it still an acceptable risk? Yes, if confined to a sample. But scrapping the current build and starting full production with updated, untested tooling would be an unacceptable risk. If the redesign failed, the extra cost would be huge material waste.

In any design, introducing a new part, material, or function carries the risk of failure – but the only way to eliminate the risk is to avoid change entirely. 

They say that “good is the enemy of great.” The best products push the envelope; and they would not exist without taking a risk.

You could say that the design phase is a playground for calculated risk-taking.

Here’s how we do it:

1. Plan (your risk management strategy)

2. Identify (potential risks)

3. Analyze (quantify and prioritize)

4. Respond (take preventative measures, or fix what is broken)

5. Control (monitor the situation to prevent future risk, and don’t forget to review your controls)

Risk is a part of design – but if you’re proactive, it doesn’t have to control the process.