Calendar·Risk Management·Operational Risk
Process Failure and Control Breakdowns
FACULTY OF RISK MANAGEMENTOperational Risk • ~50 min

How operational failures occur in Canadian organizations — process design flaws, control gaps, human error, and the conditions that allow small failures to become significant incidents.

Process Failure and Control Breakdowns

Price
$149
Lessons
6
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What this course covers

01How Process Failures Happen: The Anatomy of an Operational Breakdown
02Control Design: What Makes a Control Effective vs. Nominal
03Human Error: The Role of People in Operational Risk
04The Normalization of Deviance: How Unsafe Practices Become Standard
05Control Testing and Validation: Confirming Controls Actually Work
06Documenting Controls and Failures: Building the Operational Risk Record

Scenario

A regional food processing company in southwestern Ontario had operated for more than 15 years with a reputation for reliable production and steady growth. The company employed approximately 120 workers across 2 facilities, processing locally sourced agricultural products for distribution to grocery chains and food service operators throughout central Canada. Its operations depended on a series of interconnected processes: receiving raw materials from suppliers, inspecting inputs for quality and safety, processing and packaging products according to food safety protocols, and coordinating logistics for time-sensitive deliveries.

The company maintained a documented food safety management system, including hazard analysis and critical control point protocols, sanitation schedules, temperature monitoring procedures, and equipment maintenance checklists. Supervisors were responsible for verifying that workers followed established procedures, and the quality assurance manager conducted periodic internal audits. On paper, the control framework appeared comprehensive. In practice, the gap between documented procedures and daily operations had widened over several years without anyone formally acknowledging the drift.

A series of events over an 8-month period brought these gaps into sharp focus. Production line workers had developed informal shortcuts to meet throughput targets during peak seasons, including bypassing certain sanitation steps when equipment appeared visually clean and deferring temperature log entries until the end of shifts rather than recording them at prescribed intervals. Supervisors, facing pressure to maintain output volumes, had tacitly accepted these deviations. When a new quality assurance coordinator raised concerns about inconsistencies between documented procedures and observed practices, the production manager dismissed the concerns as academic, noting that the company had never experienced a serious incident.

The situation changed when a routine inspection by a provincial food safety authority identified multiple non-conformities, including incomplete sanitation records, temperature logs with retroactive entries, and equipment maintenance deferrals that exceeded manufacturer specifications. The inspector issued a compliance order requiring corrective action within 45 days and indicated that further violations could result in licence suspension. Within weeks, the company also received notification from a major grocery chain customer that it was conducting its own supplier audit in response to the regulatory findings.

Senior management now faces urgent questions about how the company's control framework eroded, why deviations became normalized across multiple production teams, whether existing controls were ever validated for effectiveness, and how to rebuild both the operational risk record and the credibility of the company's food safety assurance to regulators and customers. The executive team includes the founder serving as chief executive, a chief operating officer responsible for both facilities, and a recently hired risk and compliance director whose mandate suddenly expanded from policy development to crisis response.

More in this program

Operational Risk: Definition, Sources, and Exposure
~30 min · $79
Vendor and Third-Party Risk Management
~30 min · $79
Incident Response and Post-Incident Review
~50 min · $149

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