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The Role of Organizational Failure Mode, Effects & Analysis(FMEA) in Risk Management and Its Impact on the Company's Performance

The defects in the institutions, both on the national and global sectors, are usually shown in the performance and quality of the product, as institutions that have a weak risk management system are vulnerable to increased errors and points of failure. Thus, the weaker the risk management system, the lower the performance and the negative results increase in the institution. Undoubtedly all institutions are striving to have a strong risk management system with good performance. We have relied in our study on a chain strategy in collecting accurate information through a field experiment to prove the relationship between risk management and the performance of the institution, which has allowed us to discover that the most important reasons for the decline in performance in the institution are due to the failure points in the administration and some officials. These defects have a direct and indirect impact on the performance of the institution. Based on the relationship between risk management and performance, this paper emphasizes on strengthening risk management in companies through the use of the organization FMEA method in order to improve the performance of the organization and obtain positive results in various sectors of the institution with minimal loss and less time.