OPERATIONAL RISK MANAGEMENT

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OPERATIONAL RISK MANAGEMENT
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(No Transcript)
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Why have ORM for NJROTC?

• Summer Camp

• Drill

• PRT

• NJROTC picnic

• Orientation trip

• AMI

• Sword Teams

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What well cover today
5-Step ORM Process Causes of Risk 4 ORM
Principles 3 Levels of ORM Risk Assessment
Matrix
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Operational Risk Management

• ORM is the process of dealing with risk
  associated with NJROTC Unit operations, which
  includes risk assessment, risk decision making,
  and implementation of effective risk controls.

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ORM

• A Decision Making Tool
• Should we do this or not?
• Increases Ability to Make
• Informed Decisions
• Reduces Risks to Acceptable
• Levels

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ORM Goal

• The goal of ORM is to optimize operational
  capability and readiness by managing risk to
  accomplish the mission with minimal loss.

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ORM Terms
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ORM Terms
Hazard A condition with the potential to cause
personal injury or death, property damage, or
mission degradation.
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ORM Terms

• Risk
• An expression of possible loss in terms of
  severity and probability.

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ORM Terms
Severity
The worst credible
consequence which can occur as a result of a
hazard.
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ORM Terms
Probability The likelihood
that a hazard will result in a mishap or loss.
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Physical Training Example
Hazard
Risk
Bad Weather
Slipping on track
Chance of muscle strain
Improper Stretching Before Exercise
Chance of knee injury
Running on Hard Pavement
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ORM Terms
Control A method for reducing risk for an
identified hazard by lowering the probability of
occurrence, decreasing potential severity, or
both.
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ORM Terms

• Risk Assessment
• The process of detecting hazards and assessing
  associated risks.

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ORM Process
1. Identify Hazards
2. Assess Hazards
3. Make Risk Decisions
4. Implement Controls
5. Supervise
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Causes of Risk

• Change - The Mother of Risk
• Resource Constraints
• New Technology
• Complexity
• Stress

TEENAGERS!!!!
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Causes of Risk

• Societal Constraints
• Environmental Influences
• Human Nature
• Speed/Tempo of Operation
• High Energy Levels

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Four ORM Principles

• 1. Accept risk only when the benefits outweigh
  the probable costs.
• 2. Accept no unnecessary risk.
• 3. Anticipate and manage risk by planning.
• 4. Empower and train subordinates to make risk
  decisions at the right level.

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ORM Levels of Application
1. Time-critical - On the run
consideration of the 5 Steps 2. Deliberate -
Application of the complete 5-Step
Process 3. In-depth - Complete 5-Step
Process with Detailed Analysis
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Risk Assessment Matrix

• When conducting a risk assessment, you must
  factor in the severity of the hazard, the
  probability of occurrence, and assign a risk
  assessment code to determine the risk level.

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Risk Assessment Matrix

• Severity
• Category I (Critical)
• Hazard may cause death, loss of facility/asset
  or result in grave damage to national interests.

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Risk Assessment Matrix

• Severity
• Category II (Serious)
• Hazard may cause severe injury, illness,
  property damage, damage to national or service
  interests or degradation to efficient use of
  assets.

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Risk Assessment Matrix

• Severity
• Category III (Moderate)
• Hazard may cause minor injury, illness, minor
  property damage, minor damage to national,
  service or command interests or minor degradation
  to efficient use of assets.

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Risk Assessment Matrix

• Severity
• Category IV (Minor)
• Hazard presents a minimal threat to personnel
  safety or health, property, national, service or
  command interests or efficient use of assets.

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Risk Assessment Matrix

• Probability
• Sub Category A
• Likely to occur immediately or within a short
  period of time. Expected to occur frequently to
  an individual item or person or continuously to a
  group.

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Risk Assessment Matrix

• Probability
• Sub Category B
• Probably will occur in time. Expected to occur
  several times to an individual item or person or
  frequently to a group.

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Risk Assessment Matrix

• Probability
• Sub Category C
• May occur in time. Can reasonably be expected
  to occur some time to an individual or several
  times to a group.

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Risk Assessment Matrix

• Probability
• Sub Category D
• Unlikely to occur.

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Risk Assessment Matrix

• Risk Assessment Code (RAC)
• The RAC is an expression of risk which combines
  hazard severity and mishap probability. Using
  the matrix, the RAC is expressed as a single
  number that can be used to help determine hazard
  abatement priorities.

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Risk Assessment Matrix
PROBABILITY OF OCCURENCE
Likely Probably May
Unlikely
A B C
D
S E V E R I T Y
Critical
1
1
2
3
Serious
1
2
3
4
Moderate
2
3
4
5
3
4
5
5
Minor
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ORM vs. Non-standard Approach
Systematic Random, Individual-Dependent
Proactive Reactive
Safety As After-thought Once Plan is Done
Integrates All Types of Risk Into Plan
Common Non-standard Process Terms
Conscious Decision Can Do Regardless of
Risk Based on Risk Benefit
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The Benefits of ORM
gt Reduction in Mishaps
gt Improved Mission Effectiveness
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Questions??