Conversations about success in the corporate world often revolve around people, profits, and business expansion. Yet, beneath the surface, two silent powerhouses determine whether an organization thrives or falters—risk and quality. These twin pillars are not mere checkboxes in a compliance framework; they are the DNA of sustainable business excellence. (In business, DNA1 is a metaphor for a company's culture, values, and guiding principles…the internal genetic code that governs how a business functions.)
As W. Edwards Deming, the father of quality management, famously said, “Quality is everyone’s responsibility,” Organizations that embed risk awareness and quality consciousness into their culture set themselves apart in an era defined by complexity and disruption.2
Cost of overlooking risk – a lesson in business fragility
In today’s high-stakes business environment, firms operate in a minefield of challenges—tight deadlines, evolving regulations, and increasing client expectations. A minor oversight can spiral into a major crisis. Consider the 1999 NASA Mars Climate Orbiter disaster.3 A simple unit conversion error—metric versus imperial—led to a $327 million failure.
This single lapse underscores a fundamental truth: risk management isn’t just about mitigation—it’s about survival. The real cost of ignoring risk is not just financial—it erodes trust, damages credibility, and limits future opportunities.
Organizations that proactively identify and mitigate risks safeguard their reputation and ensure business continuity. A well-structured risk management framework allows businesses to anticipate disruptions, rather than react to them when it’s too late. Proactive risk management is not an expense – it’s an investment in resilience.
Quality – the ultimate growth catalyst
Many leaders mistakenly view quality assurance as an operational burden. In reality, it is a strategic driver of profitability and market leadership. According to the American Society for Quality (ASQ), companies that prioritize quality experience 4-6% higher revenue growth than those that don’t.4 Why? Because poor quality results in costly rework, dissatisfied clients, and reputational harm.
We believe Toyota is a shining example of how their emphasis on quality has produced a competitive advantage for them. The Toyota Production System’s continuous improvement has positioned the company as a global leader in reliability and innovation.5 As Toyota’s founder, Kiichiro Toyoda, asserted, “We must stop living day to day and start thinking in terms of long-term profit.”
The drain on profits from fixing mistakes far exceeds the cost of embedding quality from the outset. That’s why organizations that view quality as a core principle rather than a compliance requirement reap tangible benefits: enhanced efficiency, improved customer loyalty, and a stronger bottom line.
How quality assurance shields businesses from costly pitfalls
A well-structured Quality Assurance (QA) system is more than a safeguard—it is a competitive differentiator that delivers benefits such as:
- seamless consistency to standardize processes across all deliverables -- which ensures reliability and enhances client confidence;
- early error detection to identify and resolve issues before they escalate -- which prevents costly rework and protects brand reputation;
- regulatory readiness to produce strong QA processes to ensure compliance with industry and legal standards -- which reduces exposure to fines and legal risks; and
- reputation reinforcement to consistently deliver superior quality -- which fosters trust, leading to client retention and referrals.
Industries like IT, consulting, and healthcare have demonstrated that rigorous QA processes enhance efficiency and reduce last-minute corrections, ultimately boosting client satisfaction and profitability.
Risk management plus quality assurance equals organizational resilience
Risk management and quality assurance are not separate silos. They form an interconnected framework to strengthen an organization’s resilience. Their integration fuels success by creating:
- proactive risk mitigation to embed risk assessment into quality processes and prevent costly failures before they occur;
- continuous monitoring to perform regular assessments and ensure early detection of potential disruptions;
- stronger client relationships to manage risks while maintaining top-tier quality and cultivate long-term trust; and
- sustainable growth to earn a strong reputation for reliability and attract premium clients and repeat business.
Peter Drucker wisely noted, “The greatest risk is not taking one.”6 However, unmanaged risks can sink a business like a slow leak in a ship. By embedding both risk awareness and quality excellence into their DNA, organizations can position themselves to navigate complexities and seize new opportunities with confidence.
A culture of quality is a mindset, not an obligation
Quality isn’t just a box to tick to pass an audit. It’s a mindset seeking to build a legacy that stands the test of time. It cannot be enforced through rules alone but must be ingrained into the organizational culture. Businesses that embed quality into their ethos inspire excellence at every level. Employees taking ownership of quality transforms their thinking from seeing quality as a compliance necessity to seeing it as a shared value that drives long-term success.
In conclusion, quality is the true measure of success
In the relentless pursuit of growth and profitability, organizations often overlook the silent forces that sustain success — risk and quality. History has proven that firms with a zero-tolerance approach to risk exposure and a deeply embedded culture of quality are the ones that endure and excel.
The lesson is clear. Risk and quality are not departments. They are the foundation of lasting success. The question isn’t whether organizations can afford to prioritize risk and quality — it’s whether they can afford not to.
END NOTES
- See Strategy$, Part of the PwC network, article titled Organizational DNA: The key to unlocking your company’s potential.)
- ASQ online review titled Quality Quotes referencing article titled Quality is everyone’s responsibility, W. Edwards Deming
- National Aeronautics and Space Administration (NASA) article titled Lost in Translation, August 2009, Vol. 3, Issue 05
- ASQ defined. See Wikipedia report. See also Forbes article titled Quality efforts boost sales, profits and efficiency… Ref also ASQ report, Executive Guide to Understanding and Implementing Lean Six Sigma, a .pdf document
- Toyota Production System, commentary from Toyota
- Medium article titled The art of navigating risk for success
About the Authors
Mohit Khullar, an Executive Director with Grant Thornton Bharat LLP, Mohit brings more than two decades of experience in Risk and Quality, Contracts management, Strategy and advisory. He is a member of the Chartered Institute of Arbitrators, UK, and the Indian Council of Arbitration. As an accredited coach from the European Mentoring and Coaching Council (EMCC), Mohit is also recognized among the top voices in risk management, contracts, and mentoring on LinkedIn. Mohit has also written a book titled “BossvsCoach” which will be released globally in March 2025.
Arpita Maggon, a distinguished member of the Risk & Quality Team at Grant Thornton Bharat LLP, is a CMMI Level 3-certified professional with over a decade of expertise in contract management, dispute resolution, compliance, procurement operations, and risk management. Her deep industry knowledge, combined with diverse experience, equips her with a holistic perspective on navigating the evolving landscape of risk, quality, and business excellence.
