OPERATIONAL RISK MANAGEMENT (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
(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.
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.
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.
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.
Assess Hazards (Step 2)
Make Risk Decisions (Step 3)
Implement Controls (Step 4)
Supervise (Step 5)
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.
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.
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
within a short period of time. Expected to occur frequently to
an individual item or person or continuously to a fleet,
inventory or group.
Expected to occur several times to an individual item or person
or frequently to a fleet, inventory or group.
be expected to occur some time to an individual item or person or
several times to a fleet, inventory or group.
risk that combines the elements of hazard severity and mishap
A B C D
I 1 1 2 3
II 1 2 3 4
III 2 3 4 5
IV 3 4 5 5
2 – Serious risk
3 – Moderate risk
4 – Minor risk
5 – Negligible risk
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