Risk Based Certification(TM) is DNV's new way of delivering accredited management system certification. It means focusing audits on identified risk areas in addition to the regular requirements. "We are the fist to take steps towards tailor made certification audits and reporting in the world," says Henrik Madsen, COO of DNV Certification.
Risk Based Certification is not a replacement for accredited certification, but a different approach in delivering the service. The end result of the certification process may still be a ticket-to-trade. However, DNV's new risk-based approach offers more.
"We will ask our customers to tell us what their most important business processes are because they know this best. Then, after discussions to identify the specifics and agree on the approach, we tailor the audit to focus especially on these identified processes. This goes beyond compliance to any standard, but is vital in assisting the business to identify key improvement areas," says Henrik Madsen, COO of DNV Certification.
An important part of the process is also the post-audit briefing, where the auditor provides direct feedback on the key issues. The feedback is summarised in a report and left with the customer. During the periodic audits and re-certification processes customers can focus on new issues, accommodating possible changes in priorities.
A vital change for certification
The certification business has shown signs of maturing in certain markets. Customers that have gained a high level of competency now expect more value from their certification partners. Henrik Madsen claims that a change in the certification process is of vital importance to move the business beyond compliance verification.
"This is almost a life and death question, I believe, for the industry. We must renew the certification process and offer real value to our customers. We cannot continue to perform the way we as an industry have in the past. I believe that the whole certification industry will benefit form this new approach, and indeed the feedback from the International Accreditation Forum (IAF) has been positive. It is very possible, therefore, that this way of doing things will develop and be added into the standards themselves in time," says Madsen.
Great strides
DNV Certification has mobilised the whole organisation to be able to deliver risk based certification. Everyone in the organisation, close to 2,500 auditors, sub-contractors and support staff around the world, has gone through the training program. In addition reporting formats have been updated and aligned in every market.
"Our entire staff has gone through the exact same training. This ensures a common understanding across all our offices. We have also used this process to go from 20 report formats to one standard, which is a fantastic improvement. This helps ensure that the same service is delivered worldwide. We have also started a monitoring process, where we will review and analyze 500 rapports over the next six months for quality and consistence," says Madsen.
Take-off with Korean Airlines
In Korea, the first customers have already been certified based on this new methodology. Korean Airlines has been certified by DNV for years. During the audit in late October of this year, the customer asked DNV to focus on two particular areas in addition to those normally covered by the ISO 14000 standard.
Young-Keun Kim of DNV Certification in Seoul explains that Korean Airlines' focus areas were the supplier control process and environmental awareness and training. The company believes that environmental awareness and training are essential to implement its environmental management system. How its suppliers handle waste and act in relation to environmental issues are also important.
"What's new about this is that we as an auditing team follow up more than we would through an ordinary audit," says Y. K. Kim. "In advance, we ask the customer's managers to specify some areas to be focused on. Together with the customer, we dive into all types of problems within the elected area. Finally, we summarise the auditing team's findings and hand over the report to the customer for further action."
For Korean Airline, which has outsourced its ticketing service and parts of its maintenance work, it is important to ensure that these tasks are carried out in line with the airline's policy.
"Through our findings, we concluded that there were some gaps to close - gaps that would not have been discovered without the new risk based certification regime," explains Y. K. Kim. "For example, the training sessions at the customer's head office are good, while those held at most of the local offices should be better."
Korean Airlines' comments on this new way of conducting the audit have been very positive. DNV is a neutral third party that has a better opportunity to identify risk and have a wider focus than the ISO regime alone.
Managing risk
The goal that all DNV's services have in common is to manage risk. It was therefore only natural that DNV Certification would be the first to use this approach in Certification.
"I think the risk approach is in our blood throughout the organisation and a part of our way of thinking. Being the first is not unusual for DNV, and we are glad that we now have this opportunity to move forward with something new," says Madsen.
DNV's main vision is to be the customers' first choice in services for managing risk. Time will show if customers go for Risk Based Certification.
Anders Øvreberg/Per Wiggo Richardsen
Date: 2005-01-06