FMEA Part 1 - Intro. Not All Project Risks Are Created Equal.

All good managers know that there are risks in everyday business. Projects can turn south, processes can break. If you are in Finance, those risks can be critical. Imagine a breakdown in your monthly closing process. Or a new sub-ledger you want to roll-out. But can you identify those risks and the impact to your business?

This article will cover a fundamental tool used by project managers and Six Sigma professionals to identify risks, quantify the impact, and brainstorm how to mitigate those potentially nasty results. FMEA stands for Failure Modes and Effects Analysis. It's a simple tool and methodology to help ensure you have your bases covered and that risks are clearly understood by everyone.

Below is an brief overview of the FMEA process:

In future posts, we will discuss these steps in detail and I’ll share an FMEA template example to get you going. If your business needs immediate help with a project or process risk analysis, let’s connect.

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