Operational Risk Management

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Operational Risk Management
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Overview

• Operational Risk Management (ORM)
• Definition
• Purpose and Goal
• Principles

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Overview (Continued)

• ORM Process
• Step 1 Identify the Hazards
• Step 2 Access the Risk
• Step 3 Analyze Risk Control Measures
• Step 4 Make Control Decisions
• Step 5 Implement Risk Controls
• Step 6 Supervise and Review
• ORM Responsibilities

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Definition

• ORM is a logic-based, common sense approach to
  making calculated decisions on human, materiel,
  and environmental factors before, during, and
  after Air Force mission activities and
  operations, i.e., on- and off-the-job

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Purpose and Goal

• Purpose To enable commanders, functional
  managers, supervisors, and individuals to
  maximize operational capabilities while
  minimizing risks
• Goal To enhance mission effectiveness at all
  levels, while preserving assets and safeguarding
  health and welfare

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Principles

• 1. Accept no unnecessary risk
• 2. Make risk decisions at the
• appropriate level
• 3. Accept risk when benefits outweigh
• the costs
• 4. Integrate ORM into Air Force Doctrine
• and Planning at all levels

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ORM
1. Identify the Hazards
6. Supervise and Review
2. Assess the Risks
5. Risk Control Implement
3. Analyze Risk Control Measures
4. Make Control Decisions
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Step 1 Identify the Hazards

• Any real or potential condition that can cause
  injury, illness, death to personnel or damage to
  or loss of equipment or property
• Purpose Identify as many as possible
• Ideas on how to identify hazards

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Step 2 Assess the Risks

• Probability and severity of an undesirable event
  that could result from the hazard
• Three Components of Risk
• Methods and Tools

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Step 3 Analyze Risk Control Measures

• Investigate specific strategies and tools that
  reduce, mitigate, or eliminate the risk
• Effective control measures reduce or eliminate
  one of the three components (probability,
  severity, or exposure) of risk

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Step 4 Make Control Decisions

• The earlier in the process risk controls are
  implemented, the cheaper the cost
• Control decisions must be made at the appropriate
  level
• Safety advisors and consultants do not control
  the necessary resources to implement the control
  decisions

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Step 5 Implement Risk Controls

• Assets must be made available to implement to
  specific controls
• Inform the personnel in the system of the risk
  management process results and subsequent
  decisions
• To be effective, control measures must be
  implemented in an appropriate and understandable
  way

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Step 6 Supervise and Review

• ORM process continues throughout the life cycle
  of the system, mission, or activity
• Once controls are in place, the process must be
  periodically re-evaluated to ensure their
  effectiveness

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Step 6 Supervise and Review (Continued)

• Supervise Monitor the operation to ensure the
  controls are effective and remain in place
• Review Changes in the system should be
  recognized, and appropriate risk management
  controls must be applied

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Responsibilities

• Starts with the commander
• Supported by the staff
• Implemented by the supervisors
• Rests with all individuals

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Operational Example

• RAF Lakenheath Runway needed extensive repairs
• Temporary operations were moving to RAF
  Honnington
• How did the personnel safely accomplish this move
  with the use of ORM?

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Questions?
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Summary

• Operational Risk Management (ORM)
• Definition
• Purpose and Goal
• Principles

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Summary (Continued)

• ORM Process
• Step 1 Identify the Hazards
• Step 2 Access the Risk
• Step 3 Analyze Risk Control Measures
• Step 4 Make Control Decisions
• Step 5 Implement Risk Controls
• Step 6 Supervise and Review
• ORM Responsibilities

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ORM
1. Identify the Hazards
6. Supervise and Review
2. Assess the Risks
5. Risk Control Implement
3. Analyze Risk Control Measures
4. Make Control Decisions
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• ORM provides a logical and systematic means of
  identifying and controlling risk. It does,
  however, require individual and organizational
  dedication to its basic precepts, along with the
  discipline to apply them on a continuing basis.