1 / 21

Operational Risk Management

Operational Risk Management. 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

gen
Download Presentation

Operational Risk Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Operational Risk Management

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

  3. 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

  4. 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

  5. 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

  6. 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

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

  8. 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

  9. 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

  10. 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

  11. 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

  12. 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

  13. 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

  14. 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

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

  16. 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?

  17. Questions?

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

  19. 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

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

  21. 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.

More Related