Introduction
A study conducted in 2018 to understand the risk management capabilities of enterprises showed that out of all the participants, only 34% of the organizations were equipped with the certified risk management professionals and experts in security to manage internal threats.
Most companies did not have the necessary resources to help them achieve optimal functioning of their processes and services that were needed to help them succeed. Employees did not address the problems that arise in the organizations efficiently, leading to a threat to their operations. This is why it is advised for organizations to conduct a thorough root cause analysis to solve the problems from their very core and avoid any internal risks from getting materialized.
What Is Root Cause Analysis?
A root cause analysis is a series of steps and processes that organizations often use to solve any problems they face in their company. It is used to identify the underlying cause of any issue so that the relevant teams can work on eliminating it. Finding the root cause can seem fairly simple, but it is often ignored. This leads to problem-solving at only their face value, kind of like applying a band-aid to a situation. This solution is not permanent.
A root cause analysis is conducted to eliminate the problem altogether and prevent it from repeating. The many available methods to perform a root cause analysis help companies diagnose the main reason they face a particular issue by digging through all the possible causes. This way, the probability of the issue occurring is eliminated, and the problem is solved permanently.
A root cause analysis is also used to improve operations and processes within the company continuously. It can act as a preventative measure to help organizations avoid or mitigate any problem that might surface in the future. Root cause analysis needs to be conducted regularly and is considered an essential part of any risk management strategy.
Why Conduct A Root Cause Analysis?
A root cause analysis is often a time-consuming process, so many organizations choose not to participate in the activity or do it infrequently. This can affect the final deliveries of their projects negatively and cause a financial strain on the company.
A recent study from 2019 stated that all the participating organizations had to deal with a critical risk occurrence. Around 62% of them experienced a high drop in productivity, and nearly 60% of the companies had a significant impact on their operational efficiency. Root cause analysis helps organizations safeguard against these issues.
There are many reasons to conduct a root cause analysis, and some of them are listed below:
- Avoid financial losses to the organization
- Improve overall processes and operations within the company
- Prevent threats from materializing
- Getting a permanent solution to any problem
- Making sure the organization maintains compliance with all the laws and regulations
- Save time and resources of the company
Simply put, a root cause analysis is a highly effective problem-solving technique that is now a necessity for any organization. Now, let us explore how to conduct a root cause analysis.
How To Conduct A Root Cause Analysis?
There are many methods that organizations can choose to conduct root cause analysis. These include the 5 Whys method, the DMAIC method for root cause analysis, the fault tree method, and so on. These methods follow a series of similar steps concerned with the root cause analysis process. Let take a look at what those steps are.
Defining The Problem
The first step is to understand what the problem is and agreeing to make a defined problem statement. This problem statement is based on the specific issues that are taking place and gathering data about it. If the problem has occurred in the past, the investigative team needs to record its frequency and understand the impact of the issue. If the root cause analysis is being done as a preventative measure, then the investigation team needs to anticipate any possible problems that the end-user could face.
Identifying The Root Cause Of The Problem
Once the main problem statement is agreed upon and all the details have been collected, the next step is to identify the possible causes. Here is where the different methods of analysis come in. The various factors or reasons are identified for the problem, and possible causes are listed. This way, organizations can identify the root cause of the problem. If there are multiple causes, it is advised to prioritize them and then move on to the next step.
Identifying The Solutions And Implementing Them
The third step comes in once the root cause(s) have been identified. The investigative team needs to work with the affected team to develop a permanent solution for the problem. This will help in making sure the same issue does not arise again. Once the most viable and effective solution has been agreed upon, it needs to be adequately implemented into the existing processes to eliminate the issue.
Monitoring The Upgraded Processes
The final step is to make sure the implemented solution continues to work correctly. Sometimes the threats can evolve, and the executed solution to the problem won’t be useful anymore. With a regular monitoring system in place, the team can observe the adapted threat early on, and the organization can deal with it before it can turn into an actual problem.
These are the steps that organizations generally follow to conduct a rot cause analysis. So, now you know how to conduct a root cause analysis.
Final Thoughts
A root cause analysis is considered one of the most effective ways of problem-solving in any organization. There are many methods of conducting one, and companies can choose which method suits them best. To effectively conduct root cause analysis, organizations need to work with or hire certified risk management professionals to obtain the most value from the process and implement the best solutions.
