logo image


Previously established and reissue policy for Operational Risk Management (ORM) as an integral part of the decision-making process for all navy military and civilian personnel, on or off duty. It involves training and planning at all levels in order to optimize operational capability and readiness by teaching personnel to make sound decisions regardless of the activity in which they are involved.
is a method to identify hazards, assess risks and implement controls to reduce the risk associated with any operation.
CNO (N09F)
shall provide policy for ORM in the Navy and ensure specific applications of the ORM process are integrated into Navy Occupational Standards.
Fleet Commanders, Echelon II Commanders and Type Commanders
provide uniform force wide guidance for identifying areas where existing instructions, standard operating procedures and command-specific applicatons and requirements be augmented with ORM as per this instruction
Naval Education Training Command (NETC) shall
(1) Develop curricula for, and incorporate ORM
instruction at all points of accession and each level of formal
leadership training, General Military Training (GMT), and all
courses where safety or force protection is addressed, i.e.,
initial warfare qualification schools, war-fighting tactics or
strategy courses, etc. Serve as the course curriculum model
manager and the course control authority for ORM.
(2) Integrate the ORM process and its specific
application to pertinent subjects into fleet tactical training
and Personnel Qualification Standards (PQS).
(3) Integrate specific applicatons of the ORM process
into Navy Occupational Standards for the Navys Individual
Training Standards.
(4) Include ORM in the orientation and training of all
personnel, military and civilian. The level of training will be
commensurate with rank, experience and leadership position.
Naval Manpower Analysis Center
shall incorporate the ORM process into Naval Standards, curricula, and where ever specific applications warrant additional requirements.
Commander, Commanding Officer (COs) or Officer-in-Charge (OICs) shall:
One officer and one senior enlisted are qualified
as ORM instructors (additional officer and senior enlisted
qualified members are encouraged based on number of personnel and
unit size). They should hold significant leadership and
supervisory positions in Major Departments such as Supply, OPS,
Maintenance, Air, Engineering and Weapons/Combat Sytems.
This instruction is effective immediately upon signature. Commands shall publish and update existing instructions or standard operating procedures to augment this instruction with command-specific applications and requirements as appropriate.
a. Is a decision making tool used by personnel at all levels
to increase operational effectiveness by identifying, assessing,
and managing risks. By reducing the potential for loss, the
probability of a successful mission is increased.
b. Increases our ability to make informed decisions by
providing a formal operational risk management process.
c. Minimizes risks to acceptable levels, commensurate with
mission accomplishment. The amount of risk we will accept in war
is much greater than what we should accept in peace, but the
process is the same. Correct application of the ORM process will
reduce mishaps and associated costs resulting in more efficient
use of resources.
a. Hazard – Any real or potential that can cause personal injury or death, property damage or mission degradation or damage to enviorment.
b. Hazard Severity – An assessment of the expected consequence, defined by degree of injury or occupational illness that could occur from exposure to a hazard.
c. Mishap Probability – An assessment of the likelihood that, given exposure to a hazard, an accident will result.
d. Risk – Chance of adverse outcome or bad consequences; such as injury, illness, or loss. Risk level is expressed in terms of hasard probability or severity.
e. Risk Assessment – A structured process to identify and assess hazards. An expression of potential harm, discribed in terms of hazard severity, accident probability, and exposure to hazards.
f. Residual Risk – Risk remaining after controls have been identified and selected.
g. Operational Risk Management (ORM) – The process of dealing with risk associated within military operations, which includes risk assessment, risk decision making and implementation of effective risk controls.
Risk Assessment Code (RAC)
An expression of the risk associated with a hazard that combines the hazard severity and mishap probability into a single arabic numeral.
a. Identify Hazards (Step 1)
Assess Hazards (Step 2)
Make Risk Decisions (Step 3)
Implement Controls (Step 4)
Supervise (Step 5)
ORM Process Levels
Time-Critical – An “on the run” mental or oral review of the situation using the five step process without recording the information on paper.
Risk Assessment Matrix.
A matrix can be used to accomplish
the second step of the ORM process. Using a matrix to quantify
and prioritize the risks does not lessen the inherently
subjective nature of risk assessment. However, a matrix does
provide a consistent framework for evaluating risk.
Hazard Severity
(1) Category I – The hazard may cause death, loss of
facility/asset or result in grave damage to national interests.
(2) Category II – The hazard may cause severe injury,
illness, property damage, damage to national or service interests
or degradation to efficient use of assets.
(3) Category III – The hazard may cause minor injury,
illness, property damage, damage to national, service or command
interests or degradation to efficient use of assets.
(4) Category IV – The hazard presents a minimal threat to
personnel safety or health property, national, service or command
interests or efficient use of assets.
Mishap Probability
The probability that a hazard will
result in a mishap or loss, based on an assessment of such
factors as location exposure (cycles or hours of operation),
affected populations, experience or previously established
statistical information.
Sub-category A –
Likly to occur immediately or
within a short period of time. Expected to occur frequently to
an individual item or person or continuously to a fleet,
inventory or group.
(2) Sub-category B –
Probably will occur in time.
Expected to occur several times to an individual item or person
or frequently to a fleet, inventory or group.
Sub-category C –
May occur in time. Can reasonably
be expected to occur some time to an individual item or person or
several times to a fleet, inventory or group.
Sub-category D –
Unlikely to occur.
Risk Assessment Code (RAC)
The RAC is an expression of
risk that combines the elements of hazard severity and mishap
I 1 1 2 3
II 1 2 3 4
III 2 3 4 5
IV 3 4 5 5
RAC Definitions:
1 – Critical risk
2 – Serious risk
3 – Moderate risk
4 – Minor risk
5 – Negligible risk
Last pg
read orm flow chart

Need essay sample on "OPERATIONAL RISK MANAGEMENT (ORM)"? We will write a custom essay sample specifically for you for only $ 13.90/page

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
Complete Buyer Protection
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy