Qualitative risk assessment of RFID

Below is a short qualitative risk assessment of RFID (Radio Frequency Identification) I have pieced together.  In order to highlight strengths, weaknesses and benefits.

May it help you come to a conclusion on how would you deploy this technology while minimizing its risks?

Category Risk Impact Probability Affects
Customer QoS for customers declines because decrease in staff Medium Low Customers, Company rep.
Customer Customers may be dissatisfied with change Medium Medium Company rep, customers
Fraud Scale to RFID Fraud Low High inventory
Fraud Hackers making there own RFID tags High Low Revenue, company rep, emp trust
Inventory Management Mis-tagged or no RFID tag High Medium Inventory, revenue
Employees Adaptability Very High High Employee trust
Employees Lose or trust Medium Medium Employee loyalty
Employees strike Low Low Company rep, employee loyalty, revenue
Employees Productivity to meet new expectations Medium Low Inventory, company rep, customer loyalty
Pricing Lack or pricing from no supervision of ID creator Low Medium Revenue, company rep.
Pricing Inconsistencies Medium Medium revenue
Pricing Scanners not scanning all items Low Low Inventory, revenue
Inventory Management Mis-counts or stock and poor inventory control Medium Low Inventory control
Technical Issues RFID not functioning Very High Medium Data, company rep, employee trust, customer trust.
Technical Issues RFID limitations Medium Low data
Technical Issues Lack of knowledge for RFID or when system goes down High Medium Customer loyalty, company rep.
Technical Issues Designing Standards and processes Medium Medium Employee trust
Inventory Management RFID supplies not delivered on time Low High Inventory, customers, inventory
Inventory Management Lack of knowledge for RFID inventory processing Medium Low Employee, company rep.

 

Srength:

  • Become a leader through technology
  • Improve process flow
  • Customer satisfaction by adding value to customer services

Weaknesses:

  • Lack of technical support knowledge
  • RFID tagging on devices and produce
  • Major inventory fluctuations
  • Internal fraud
  • Damage to reputation of RFID is not effective

Benefits

  • Better real time data and additional data to make assumptions by
  • Possible opening to new market segments

Cost would be on schedule and worth the cost if all negative risks had a contingency plan. Costs can be fixed in the system and validated during pilot program to ensure cost consistency.

 

Reference:

Amber Russell, Curt Ireton, Damon Mulligan, Jan Bondoc, Tyler Rudolph. (November 2009). Risk Management Plan. RFID Implementation for Fresh Foods. Retrieved from http:// www.curtireton.com/Assets/Fresh_Foods_Risk.pdf

 

 

About Adam M. Erickson

Geek, Dad, Life-Student, Biker & DIY Enthusiast Application Developer Attended Ferris State University Lives in Muskegon, MI
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