Manufacturing Industry Risk Management

Manufacturing Industry Risk Engineering

Exploring critical risks to the manufacturing industry and how to effectively manage them

Exploring critical risks to the manufacturing industry and how to effectively manage them


When it comes to the manufacturing industry, proactive risk mitigation is critical in ensuring that safety, maintainability and operability are upheld. As industries continue to innovate and welcome new technologies such as 3-D printing and smart factory devices, there are also a variety of traditional fire and personnel hazards that must all be managed to reduce any damages to personnel safety, properties or business operations.

Risks companies in the manufacturing industry can face include:

  • Supply chain and third-party risks
  • Product recalls
  • Automation and smart factories
  • 3D printing and industrial additive manufacturing
  • Cyber threats and breaches to data
  • Fire and explosion risks in the manufacturing processes
  • Compliance and regulatory standards risks


In order to mitigate hazards in the manufacturing industry, it is critical to take a comprehensive approach due to the varied nature of risks this industry faces. In order to mitigate risks, identifying them must be the first step.

TÜV SÜD GRC works in collaboration with our clients with manufacturing operations to understand the hazards present and markets companies serve, the relative significance of key products, the manufacturing process, and locations to enable us to identify business risks and ensure that those risks are minimized. This is often accomplished through:

Fire and other safety hazards:

Managing fire and explosion risks is a critical component of any property risk engineering program for protecting personnel, facility assets, supply chain and market share. Our engineers and account managers work with the client to learn more about their unique businesses and needs. Each fire protection program is uniquely tailored to the client’s facilities, safety protocols, employees, and specific industry standards and product compliance needs.

Natural hazards are also a key area of concern for manufacturing clients since some areas that are attractive for pharmaceutical manufacturing are in areas with known earthquake and/or windstorm exposures. TÜV SÜD GRC can not only provide detailed analysis of the exposures but can also offer engineered solutions.

Supply chain and business continuity risks:

Identifying business interruption risk, quantifying the potential impact to your company, developing mitigation strategies, and preplanning for a disaster are the keys to property risk engineering. Our experts will use our knowledge of your company, industry, equipment, production bottlenecks, and exposures as the key components of the BCP process and work to help you foresee and mitigate market and supply chain risks.

Smart factories:

After industry automation, innovative technologies, such as smart robots, machine learning, additive manufacturing and Internet of Things (IoT), platforms are now ready for deployment in the industrial space where physical and digital production means are converging towards cyber-physical systems. While these innovations can invite new risks such as cyber threats, implementing the Smart Industry Readiness Index serves as a guide for companies looking to start on their digital transformation.

Electrical risks:

If not properly managed, electrical hazards have the potential to unexpectedly shut down your business or expose workers to unsafe conditions. Minimizing threats to operations and creating a safe environment for employees is of utmost importance to companies, and there are steps businesses can take to ensure their electrical practices are optimized. Implementing programs such as infrared surveys, arc flash assessments and electrical safety training can help keep your personnel safe and operations running smoothly.

Compliance risks:

If you are looking to manufacture and sell your products overseas, you will be faced with challenging compliance risks and regulatory requirements. These standards will vary country-by-country and depending on your equipment. A thorough understanding of your specific needs is critical to gaining global market access for your equipment.


In addition to the experiences gained by working closely with our clients, TÜV SÜD Global Risk Consultants (GRC) also attends and contributes to numerous conferences and seminars within the industry in order to gain further education and industry knowledge.

TÜV SÜD GRC has representatives on 30+ NFPA Committees who meet regularly to update and review industry trends and protection criteria in the fire protection community. This involvement in the industry makes GRC very familiar with the inherent risks associated with this industry and are particularly experienced in the following processes:

  • Special Hazards
  • Flammable Liquids Handling
  • Refrigeration - Ammonia Systems
  • Electrical Systems
  • Battery Charging
  • Hydraulic Systems
  • Boilers and Gas-Fired Equipment
  • Plastics Storage and Manufacturing
  • Rack Storage and Distribution
  • ESFR Fire Protection Systems
  • Computer Rooms
  • Conveyor/Auto-Picking Systems
  • Aerosol Protection
  • Dust Systems and Collectors
  • Electronics
  • Heat Treating

We have over 200+ consultants in core Practice Groups worldwide with expertise in the Manufacturing Industry Sector. This sector represents a significant portion of our current client base.


TÜV SÜD Global Risk Consultants (GRC) is the leading unbundled property loss control provider worldwide, offering a complete portfolio of property risk engineering solutions, including operational, natural hazard and business continuity planning. With a focus on developing long-term partnerships, TÜV SÜD GRC provides innovative solutions to help our clients continuously reduce the risk to their business.

TÜV SÜD GRC’s approach to providing risk control services incorporates a formal team structure, ensuring established goals are met as well as effectively addressing local and corporate needs.

The team is supervised by an Account Service Leader, who provides a single point of contact, and Technical Account Engineers. The Manufacturing industry is a main area of focus for TÜV SÜD GRC, and developments in this industry are overseen by an internal focus group who are dedicated to providing the best solutions for your business.

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