Operational Risk Management (ORM)

1. . Operational Risk Management(ORM) 1. Identify the Threats of Harm 6. Supervise and Review 2. Assess the Risk 5. Implement Risk Controls 3. Analyze Risk Control Measures 721 Air Mobility Operations Group 4. Make Control Decisions

2. . 1. Identify the Threats of Harm ORM PUBLICATIONS 6. Supervise and Review 2. Assess the Risk 5. Implement Risk Controls 3. Analyze Risk Control Measures 4. Make Control decisions AFPD 90-9, Operational Risk Management AFI 90-901, Operational Risk Management AFPAM 90-902, Operational Risk Management Guidelines and Tools

3. . 1. Identify the Threats of Harm WHAT IS ORM? 6. Supervise and Review 2. Assess the Risk 5. Implement Risk Controls 3. Analyze Risk Control Measures 4. Make Control decisions ORM is a logic-based common-sense approach to making calculated decisions on human and material factors before, during, and after missions, activities, and operations both on- and off-duty.

4. . 1. Identify the Threats of Harm WHAT IS ORM? 6. Supervise and Review 2. Assess the Risk 5. Implement Risk Controls 3. Analyze Risk Control Measures 4. Make Control decisions Using common sense and not being stupid! Problem -- Common sense isn’t always common and to some people it doesn’t always make sense.

5. . 1. Identify the Threats of Harm OPERATIONAL RISK MANAGEMENT 6. Supervise and Review 2. Assess the Risk 5. Implement Risk Controls 3. Analyze Risk Control Measures 4. Make Control decisions Why do I need it? It could save your life Who should use it? Everyone When do I use it? All of the time--on-and-off duty How do I use it? Read on

6. . 1. Identify the Threats of Harm TYPES OF ORM 6. Supervise and Review 2. Assess the Risk 5. Implement Risk Controls 3. Analyze Risk Control Measures 4. Make Control decisions Time- Critical (done in your head) Takes only a minute or so to do You do this each day (hopefully) Deliberate This may take a few hours or it could take weeks Strategic Very long term (could take months or years)

7. . 1. Identify the Threats of Harm Example of Time-Critical ORM 6. Supervise and Review 2. Assess the Risk 5. Implement Risk Controls 3. Analyze Risk Control Measures 4. Make Control decisions You just finished working a 12-hour shift and your buddy says, “Why don’t we drive to Dallas?” What are the risks? How serious are the risks? Analyze the situation Make your decisions and implement risk controls

8. . 1. Identify the Threats of Harm Example of Time-Critical ORM 6. Supervise and Review 2. Assess the Risk 5. Implement Risk Controls 3. Analyze Risk Control Measures 4. Make Control decisions Risks Falling asleep while driving Running off the road Colliding with an on-coming vehicle How serious? Very, you could kill someone - maybe you Analyze the situation... Sure, I’ll go to Dallas---but first I need some sleep

9. . 1. Identify the Threats of Harm Fundamental Goals of ORM 6. Supervise and Review 2. Assess the Risk 5. Implement Risk Controls 3. Analyze Risk Control Measures 4. Make Control decisions Enhance mission effectiveness Integrate ORM into mission processes Train all AF personnel to manage risks in all their on-and off-duty activities Identify opportunities to increase Air Force combat effectiveness

10. . 1. Identify the Threats of Harm ORM PRINCIPLES 6. Supervise and Review 2. Assess the Risk 5. Implement Risk Controls 3. Analyze Risk Control Measures 4. Make Control decisions Accept no unnecessary risks Make risk decisions at the appropriate level Accept risks when benefits outweigh costs Integrate ORM into AF doctrine and planning at all levels

11. . 1. Identify the Threats of Harm Accept No Unnecessary Risk 6. Supervise and Review 2. Assess the Risk 5. Implement Risk Controls 3. Analyze Risk Control Measures 4. Make Control decisions Risk is the probability and severity of failure or loss resulting from exposure to various threats of harm Three reasons for unnecessary risk: Not aware of the risk An incorrect assessment of cost versus benefit Interpreting “bold risk taking” as gambling

12. . 1. Identify the Threats of Harm Make Risk Decisions at theAppropriate Level 6. Supervise and Review 2. Assess the Risk 5. Implement Risk Controls 3. Analyze Risk Control Measures 4. Make Control decisions Who will answer in the event of an accident? Who is the senior person at the scene of the task? Who knows the full benefits and cost of a risk? What level makes the most operational sense?

13. . 1. Identify the Threats of Harm Accept Risks When BenefitsOutweigh the Costs 6. Supervise and Review 2. Assess the Risk 5. Implement Risk Controls 3. Analyze Risk Control Measures 4. Make Control decisions The three key questions are: What is the potential cost of a risk versus the benefit it may produce? What is the cost of taking a risk versus the cost of not taking a risk? Do the total benefits outweigh the total costs?

14. . 1. Identify the Threats of Harm Integrate ORM Into AF Doctrine and PlanningAt all Levels 6. Supervise and Review 2. Assess the Risk 5. Implement Risk Controls 3. Analyze Risk Control Measures 4. Make Control decisions Risks are more easily assessed and managed in the planning stages of a task Early integration provides the decision maker the greatest opportunity to apply ORM principles Use the Air Force 6-Step Process

15. Step 1 - Hazard ID • Threats of Harm – Any real or potential condition that can cause mission degradation, injury, illness, or death to personnel or property damage to or loss of equipment or property

16. Step 2 - Risk Assessment • Use the Risk Assessment Matrix to assign a “Value” to threats of harm (AFPAM 91-215) • Assessment Pitfalls: • Over Optimism - “It can’t happen to us. We’re already doing it.” • Inaccuracy - Misunderstood data • Alarmism - “The sky’s falling!” • Prejudice - Hidden agenda vs facts

17. Step 3 - Analyze Risk ControlMeasures • There are three actions involved in this step: • Identify Control Options • Determine Control Effects • Prioritize Risk Controls

18. Action 1 - Identify ControlMeasures • Reject - Risk Outweighs the Benefit • Avoid - Do it a Different Way • Delay - Problem May Go Away • Transfer - Contract Out the Task • Reduce - Incorporate Safety Devices

19. Action 2 - Determine ControlEffects • What is the impact on the probability and severity of the threat of harm? • What will the risk control cost? • How will various risk control options work together?

20. Action 3 - Prioritize RiskControls • Get operator input • The best controls minimize the threats of harm to an acceptable level, while allowing completion of the mission.

21. Step 4 - Make Control Decisions • Select the best risk control • Choose the right time to implement the control • Decide on the appropriate level of implementation.

22. Step 5 - Implement RiskControls • Make implementation clear • Involve all personnel and coordinate as needed • Establish accountability • Who will be responsible • Provide support • Give feedback on results

23. Why Implementation Sometimes Fails • Operators dislike it • Leaders dislike it • It’s too costly • It’s misunderstood • Wrong control for the problem

24. Step 6 - Supervise & Review • Supervise - Assure controls are effective and detect needed changes • Review - Was the benefit worth the cost • Feedback - Cross talk and supply feedback up and down the chain of command

25. Final Thoughts • All AF instructions/directives incorporate ORM into processes and need continued emphasis • Some level of risk management must be used for all tasks and operations • ORM is simply applying common sense on and off-duty

26. ORM Information • For additional information • Go to the Air Force Safety Center website • at http://www-afsc.saia.af.mil/