Quality Accreditation vs Risk Management

Amtrade’s Quality Accreditation focus is on compliance. The audit focus is on "what has happened" i.e. there is a written procedure, has the procedure not been followed, or their is a non-conformance.

Risk Managements is about maximising opportunities by managing risk. The audit focus is to examine what the risk makers and risk takers have been doing to manage the risks within the business, or their area or responsibility.

Quality accreditation is a management process system, which should be in place within a well managed company. Risk management is of importance to the short, medium and long-term success of the company and is concerned with identifying and managing risks. However suppliers and customers are interested in the risks to their business, that we do not cause issues for them, that we identify potential risks and manage them.

The food industry has a programme called Hazard Analysis & Critical Control Points (HACCP), Medical/Hospitals follows their version of Hazard and Risk Analysis.

An outline of the processes within each system are-

Quality Accreditation:
Management activities and resource availability
Measurement of business performance
Identification of Improvement Plans
Business Processes used to meet expectations
Systems management to support
Customer requirements and needs

Risk Management:
Establish the context
Identifying risks within the business, Assessing Risks (Analysing and Evaluating), Treating risks associated with any activity, function or process in a way that will enable the company to take advantage of opportunities and minimising losses.

Amtrade’s Risk Management approach covers such areas as
Business Risks -
Financial & Market:
Debt management
Interest rates
Services
Treasury
Socio-political:
War
Terrorism
State & Federal Legislation
Regulations

Hazard Risks
Operational:
Data
Consequential
Physical Damage
Outsourcing
Personnel
Criminal
Legal:
Contracts
Duty of Care
Outsourcing
Product Liability
Statutory Liability

Risk management is aligned to Due Diligence.