Operational Risk Management

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Overview

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

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

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

Purpose and Goal

• Purpose: To enable commander’s, 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

Principles

1. Accept no unnecessary risk2. Make risk decisions at the appropriate level3. Accept risk when benefits outweigh the costs4. Integrate ORM into Air Force Doctrine and Planning at all levels

ORM

1. Identifythe Hazards

2. Assessthe Risks

3. Analyze Risk ControlMeasures

4. MakeControlDecisions

5. Risk ControlImplement

6. Superviseand Review

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

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

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

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

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

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

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

Responsibilities

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

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?

Questions?17

Summary

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

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

ORM

1. Identifythe Hazards

2. Assessthe Risks

3. Analyze Risk ControlMeasures

4. MakeControlDecisions

5. Risk ControlImplement

6. Superviseand Review

ORM provides a logical and systematic means of identifying and controlling risk. It does, however, require individual and organizational dedication to it’s basic precepts, along with the discipline to apply them on a continuing basis.

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