Manufacturing.net

[Mat] Allen also suggests that companies with multiple requirements, such as those in various global locations, for example, focus on the end-product, or what the governments require. "The end-product defines the process," Allen said. "Take a look at what you need, then you can go back and figure out what data and steps are required to get you to that point."

Allen outlines four steps for a risk assessment:

1- Collect data via interviews, surveys, etc.
2- Have a platform for assessment — filter the data for all levels of management
3- Perform the assessment and determine the dollar impact and the probability of a problem
4- Check to be sure you have adequate controls in place to deal with the potential problem

* * * * *

"Risk assessments are continual, fluid, and flexible," Allen added. "The economy is bad and companies should be doing anything they can to control balance sheet volatility. Anything that interrupts cash flow is a big problem right now for manufacturing companies."