Risk Management

1
Risk Management
Risk
Benefit

• CPT J. Craig
• SG 190

2
Purpose

• Introduce the concept of risk management

• References
• FM 101-5, Appendix J
• http//safety.army.mil/

3
Outline

• What is Risk Management?
• Why Risk Management?
• Key Definitions
• The Risk Management Process
• Risk Management Integration
• Summary
• Conclusion

4
What is Risk Management?

• Originally for high-risk complex activities
  (Space, Aviation)
• Applicable to all Army operations at all levels
• Systems based concept
• Not a Science not Common Sense

Not Risk Avoidance!
5
Why Risk Management?

• Preserve combat power
• Because it works!
• Korean cold weather example
• Dramatic decrease in accidents Army-wide
• FY 96 Accident Rates

Total Accident Rate 4.22 per 1000 soldiers
record low according to Army Safety Center, Jan
97
6
Key Definitions

• Hazard
• Risk
• Probability
• Severity
• Risk Assessment
• Risk Management
• Residual Risk
• Gambling

Bold, Aggressive Risk Taker vs. Gambler ?
7
The Process
5. Supervise
8
The Process

• Compressible, flexible
• Level of detail depends on
• Time available
• Level of risk
• Control all risks that can be controlled
• Accept no unnecessary risks
• Make decisions at appropriate level

9
Risk Management Integration
The Next Generation

• Embed RM in all Army does
• Incorporates AAR
• Were controls communicated?
• Were controls implemented?
• Was Risk Management effective?
• Risk Management Integration Plan
• Draft dated 24 Dec 97

10
Summary

• What Risk Management is
• Why Risk Management is important
• Definitions
• The Risk Management process
• Risk Management Integration

Questions?
11
Conclusion

• Risk management helps us preserve combat power
  and retain the flexibility for bold and decisive
  action. Proper risk management is a combat
  multiplier that we can ill afford to squander.
• General Reimer