Risk & Quality: The Hidden Engines of Business Excellence

In the corporate world, everyone talks about people, profits, and new business wins as the ultimate markers of success. Yet, there’s an unsung hero that holds it all together—Risk and Quality. Without them, even the most promising ventures can collapse like a house of cards. As W. Edwards Deming, the father of quality management, famously said, “Quality is everyone’s responsibility.” The sooner we recognize that risk and quality are not checkboxes but the soul of any business, the sooner we can achieve sustained success.

The Risk of Ignoring Risk

In the world of consultancy, firms navigate a minefield of challenges—tight deadlines, budget constraints, and demanding clients. Then, out of nowhere, disruptions such as regulatory shifts or resource shortages strike, threatening project delivery. Without a robust risk management framework, these disruptions can snowball into major financial and reputational losses.

A classic example is the 1999 NASA Mars Climate Orbiter failure. A simple unit conversion error between metric and imperial measurements led to a catastrophic loss of a $327 million spacecraft. This debacle highlights how small quality lapses can trigger immense risks, reinforcing Aristotle’s wisdom that “Quality is not an act, it is a habit.”

Organizations that fail to proactively identify and manage risks often find themselves responding to problems too late. The true cost of neglecting risk management is not just financial; it undermines trust, damages credibility, and limits future opportunities. By addressing potential risks early through solid risk management and quality processes, firms can avoid the fallout from failures. Proactively managing risk helps businesses navigate challenges and secure long-term growth, safeguarding both their reputation and profitability.

Quality: The Ultimate Profit Multiplier

Some leaders see quality assurance as an added expense, but in reality, it’s a profit multiplier. According to the American Society for Quality (ASQ), organizations that emphasize quality see an average of 4-6% revenue growth compared to those that don’t. Why? Because poor quality leads to rework, client dissatisfaction, and reputational damage.

Take Toyota’s legendary commitment to quality. The Toyota Production System’s relentless focus on continuous improvement (Kaizen) has made it one of the most trusted car brands worldwide. As Toyota’s founder, Kiichiro Toyoda, put it, “We must stop living day to day and start thinking in terms of long-term profit.” This philosophy has allowed Toyota to turn quality into a competitive advantage, rather than a compliance necessity.

The cost of poor quality is substantial. Firms that don’t embed quality into their culture ultimately face consequences like customer churn, regulatory fines, and declining market share. Additionally, fixing mistakes after the fact is far more expensive than ensuring quality from the outset. Organizations that invest in quality from the start avoid unnecessary costs, improve efficiency, and strengthen their bottom line.

As Philip Crosby, a pioneer in quality management, stated, “Quality is free. It’s not a gift, but it’s free. What costs money are the unquality things—all the actions that involve not doing jobs right the first time.” The drain on profits from fixing mistakes is far greater than the cost of embedding quality from the start.

Four Ways Quality Assurance Shields Your Business from Costly Pitfalls

A well-structured Quality Assurance (QA) system is more than just a safeguard—it’s a strategic asset that ensures:

1. Seamless Consistency – Establishing uniform standards across all deliverables eliminates variability and ensures reliability in every client interaction.
2. Early Error Detection – Catching potential issues before they escalate saves time, money, and client trust, reducing the need for expensive last-minute fixes.
3. Regulatory Readiness – Robust QA processes ensure compliance with industry and legal standards, reducing the risk of penalties and operational disruptions.
4. Reputation Reinforcement – Consistently delivering top-tier quality builds credibility, fosters client confidence, and strengthens long-term business relationships.

For example, in the IT sector, a well-implemented QA system ensures that all deliverables meet predefined specifications, reducing the need for last-minute revisions and enhancing overall client satisfaction.

Risk Management + Quality Assurance = Business Resilience

Risk management and quality assurance aren’t separate functions; they are two sides of the same coin. When integrated properly, they create a synergy that strengthens the organization’s resilience. Here’s how:

1. Proactive Risk Mitigation – By embedding risk identification into QA processes, firms can prevent disasters before they happen.
2. Continuous Monitoring – Ongoing assessments allow early detection of issues before they escalate.
3. Stronger Client Relationships – Firms that manage risks without compromising quality foster trust and long-term client retention.
4. Sustainable Growth – Organizations that prioritize risk and quality build reputations of reliability, attracting repeat business and premium clients.

As Mark Zuckerberg put it, “The greatest risk is not taking one.” But unmanaged risks are like leaks in a ship—they might start small, but left unchecked, they will sink the entire business. Risk-aware organizations not only protect themselves from disaster but also create a foundation for sustained growth. Firms that prioritize both risk management and quality assurance are better positioned to navigate complex projects, earn repeat business, and secure new opportunities.

Culture of Quality: Not an Obligation, but a Mindset

A business can’t enforce quality; it must be ingrained in its culture. High standards aren’t a burden; they are the foundation of lasting success.

Firms that embed quality into their DNA don’t just reduce errors—they inspire excellence. When employees take ownership of quality, it transforms from a set of rules into a shared ethos that drives success. Achieving quality is not about passing inspections—it’s about building a reputation that stands the test of time.

Conclusion: The True Measure of Success

In the corporate race for profits and growth, Risk and Quality are often overlooked. Yet, history proves that organizations with a zero-tolerance approach to risk and a culture of embedded quality are the ones that stand the test of time. As Peter Drucker wisely put it, “Quality in a service or product is not what you put into it. It is what the client or customer gets out of it.”

For businesses looking to thrive in today’s volatile world, the lesson is clear: Quality isn’t a department, and risk isn’t just a compliance issue. They are the foundation of sustainable success. The question isn’t whether you can afford to prioritize them—it’s whether you can afford not to.

Authored by Mohit Khullar, Executive Director with Grant Thornton Bharat LLP and Arpita Maggon, Manager-Risk & Quality with Grant Thornton Bharat LLP