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OPERATIONAL RISK MANAGEMENT

OPERATIONAL RISK MANAGEMENT. OBJECTIVES. Establish a common ORM language Train all hands on ORM basics: 3 application levels 4 ORM principles 5 steps of ORM process Group Sessions - ORM Scenario Applications. WHAT IS ORM ?.

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OPERATIONAL RISK MANAGEMENT

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  1. OPERATIONAL RISK MANAGEMENT

  2. OBJECTIVES • Establish a common ORM language • Train all hands on ORM basics: • 3 application levels • 4 ORM principles • 5 steps of ORM process • Group Sessions - ORM Scenario Applications

  3. WHAT IS ORM ? A leadership tool used to accomplish the mission with the least risk.

  4. ORM GOAL To strive for operational readiness & effectiveness by managing risk to accomplish the mission with minimal loss.

  5. USN & USMCSHORE/GROUND MISHAPS 108 dead over last 5 years

  6. USN & USMCAVIATION MISHAPS 133 dead over last 5 years

  7. USN & USMCRECREATIONAL MISHAPS 157 dead over last 5 years

  8. USN & USMCSUICIDES ? ? ? Why? 350 dead over last 5 years

  9. USN & USMCPMV MISHAPS 631 dead over last 5 years

  10. TOP CAUSESOF DEATHS (1995-1999) 1,846 Deaths

  11. NAVY/MARINEAIRCRAFT LOSSES FY 95-99 TYPE AIRCRAFT# LOST JETS 106 HELOS 37 PROPS 5 TOTAL LOST 148

  12. ORM IN SIMPLE TERMS ORM can be as simple as taking a few seconds to review your current situation.

  13. 776 aircraft destroyed in 1954 22 aircraft destroyed in 1999 Rate 1.44 ORM IS NOT NEW Angled decks Aviation Safety Center Naval Aviation Maintenance Program (NAMP), 1959 RAG concept initiated NATOPS Program, 1961 Squadron Safety program System Safety Designated Aircraft ACT Aircraft Mishap rate 50 65 80 95 FY

  14. WHAT GOT US TO THE PLATEAU? • Tried and true principles: • Leadership • Accountability • Creativity

  15. RATE PER 100K FLT HRS FY NAVAL FLIGHT MISHAP CONTRIBUTING CAUSE FACTORS

  16. WHAT CAN WE DO TO IMPROVE? • Concepts that will help us break through the plateau. • Operational Risk Management • Human Factors Considerations • Technology

  17. ORM TERMS HAZARD A condition with potential to cause mission degradation, personal injury or death, or property damage.

  18. ORM TERMS RISK An expression of the potential impact of a hazard in terms of severityand probability.

  19. ORM TERMS SEVERITY The worst credible consequence which can occur as a result of a hazard.

  20. SEVERITY CATASTROPHIC CRITICAL MODERATE NEGLIGIBLE

  21. ORM TERMS PROBABILITY An expression of the likelihood that a hazard will cause mission degradation or result in a mishap or loss.

  22. PROBABILITY DEFINITIONSExample Breakdown • LIKELY to occur very soon • PROBABLY will occur in time • MAY occur in time • UNLIKELY to occur

  23. ORM TERMS RISKASSESSMENT The process of evaluating the associated risks of identified hazards.

  24. ORM TERMS CONTROL A measure for reducing risk for an identified hazard by lowering the probability and/or severity.

  25. Risk Control Desired Effect Drive probability down Drive Severity Down

  26. 3 APPLICATION LEVELS • Time Critical • Little time, done on the run. • Deliberate • For situations that allow more planning. • In Depth • Long term process with extensive research and planning.

  27. 4 KEY ORMPRINCIPLES 1. Accept risks when benefits outweigh costs. 2. Accept no unnecessary risk. 3. Anticipate and manage risk by planning. 4. Make risk decisions at the right level.

  28. 5. Supervise 2. Assess Risks 4. Implement Controls 3. Make Control Decisions 5 STEP ORM PROCESS 1. Identify Hazards

  29. CAUSES OF RISK * Change - The “Mother” of Risk * Resource Constraints * New Technology * Complexity * Stress * Environmental Influences * Speed or Tempo of Ops * Societal Constraints * High Energy Levels * Human Nature

  30. CULTURAL CHALLENGES • Can do “anything, anywhere, anytime, at any cost” mentality. • “Do more with less” mindset. • Reluctance to say “no.” • Making decisions based on “the way we’ve always done it.” • Letting others worry about our mission hazards. • Doing only what we “have to” and not what we “should do.”

  31. ORM TOOLS • SHARP/SARA/SQOM • NAMP/NATOPS/SOP’S • ACT/GCT • HFC/HFB • SURVEYS (SAFETY/MCAS/CSA) • TRAINING (Standdowns, GMT, etc.) • ORM Corner stories in magazines

  32. ORM Website

  33. Make ORM our way of doing business ORM VISION: Three Questions: What can happen that can hurt me or my mission? What am I going to do about it? If I can’t … who am I going to tell?

  34. TOP CAUSESOF DEATHS (1995-1999) 1. Identify Hazards 2. Assess Risks 5. Supervise 4. Implement Controls 3. Make Control Decisions

  35. “And...you gotta try not to get famous while you’re in the act.” If there is any doubt…then there is no doubt. Stop what you are doing and and brief it !!!! Any Questions???

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