The Role of Operational Risk Management in Quality Assurance

Abstract

As an integral part of business activities, operational risks have a multifaceted impact on the development, efficiency, and functioning of an organization. Failures in internal processes, human errors, system failures, or external factors can significantly impact service levels, production stability, and the conformity of products or services to requirements. Given that quality is a fundamental factor in competitiveness, effective operational risk management is a key element of a quality assurance system. This study presents a comprehensive analysis of the factors through which a risk management system impacts quality indicators and identifies the relationship between the components of a risk management system and quality management. Based on theoretical analysis conclusions are drawn regarding the need to integrate a risk management system into an organizations operations to ensure quality at various stages of business processes. A structured scientific theory and comparative analysis of literature, as well as international standards, were proposed to study how operational risk management mechanisms influence quality indicators. The use of the Ishikawa diagram and the FMEA method made it possible to demonstrate this relationship. Furthermore, the study substantiates the need to transition from a reactive to a proactive management model that enables the prediction, prevention, and mitigation of risks at early stages. The results of the study demonstrate that operational risk management and its integration into the quality management system improves process stability, reduces the likelihood of defects and service failures, and, accordingly, strengthens preventive control mechanisms. The analysis resulted in the development of a set of recommendations for improving the quality management system through operational risk management. UDC: 005.334:005.6; JEL: M11, M14, L15