Improvement of Operational Controls to Prevent Avoidable Legal Compliance Situations which could Adversely Impact Company Performance

Abstract

Ineffective organizational controls could result in a variety of unexpected consequences for an organization as they could contribute to unclear direction and insufficient control mechanisms. The efforts of this project were centered on exploring an event where a business risk was materialized at a small company due to ineffective operational controls, the exploration of root causes that drove it to realization, and the implementation of potential risk mitigation efforts that could minimize the probability of occurrence and severity of consequence of similar future events. The DMAIC cycle in conjunction with industry standard quality tools and project management methods were leveraged to perform an improvement effort while demonstrating the value of structured process to company management. As a result, the importance of operational controls as a value-added risk mitigation technique was demonstrated. Various improvements related to policies, procedures, and management information systems were properly implemented while ensuring that an adequate cost-benefit approach was followed. Key Terms ⎯ 5 Whys, Cause-and-Effect Diagram, Cost Analysis, DMAIC, Ishikawa Diagram, Lessons Learned, Management Functions, Project Management Methods, Quality Toolbox, Risk Management, Risk Measurement, Voice of the Customer.