OPERATIONAL RISK MANAGEMENT ASSESSMENT

CORE0101

OVERVIEW
Background, Definitions and terms, Purposes and goals, Why we use ORM, Five step ORM process, Three levels of applying ORM, Principles of the ORM process, Responsibilities of implementing.

ORM BACKGROUND
Originally developed to improve safety. Adopted by Army. ORM was implemented in Marine Corps.

ORM BACKGROUND
ALMAR 210/97 states. Commanders Shall Incorporate ORM:
 Crisis action  Exercise planning  Commanders intent  Discussion at decision briefs

DEFINITION OF OPERATION RISK MANAGEMENT

Process of Dealing With Risk Associated With Military Operations. Is Decision Making Tool. Effective Tool for Maintaining Readiness

DEFINITION OF OPERATION RISK MANAGEMENT

Not Just an S-3 or S-4 Function. Force Reductions. Moral Responsibility.

PURPOSE & GOAL OF THE ORM PROCESS

Purpose:
Minimize risk.

Goal:
Manage risk so mission can be accomplished.

WHY USE THE ORM PROCESS?

To prevent Unnecessary losses. Common mishap causes:
Individual failure. Support failure . Leader failure. Training failure. Standards failure.

WHY USE THE ORM PROCESS?

Mishap injuries
Reported USMC Ground mishap injuries during FY 1991-1999 Category Mishaps Fatalities Permanent Total Disability Permanent Partial Disability Lost Time Injury (1 + days) Hospital Days Lost Days (Non-Hospital) Marine 14,049 962 111 364 14,046 22,946 95,568

NOTE: Marine includes Sailors & Soldiers attached to Marine Corps units. Table does NOT include light duty or follow-up treatment. Statistics include on and off duty mishaps.

WHY USE THE ORM PROCESS?

Mishap costs
Reported USMC Ground mishap dollar costs during FY 1994-99 Category Injury and Fatality Cost Property Damage Injury and Fatality Plus Property Damage Total $188,700,836 $30,073,474

$218,774,310

WHY USE THE ORM PROCESS?

Combat losses
WWII 1942-45 Mishaps Friendly Fire Enemy Action 56% 1% Korea 1950-53 44% 1% Vietnam 1965-72 54% 1% DS/DS 1990-91 75% 5%

43%

55%

45%

20%

WHY USE THE ORM PROCESS?

Weve always done it!
The risk and degree of success has varied depending on level of training and experience. Different evaluation of course of action.
Mission GO/NO GO criteria Mission/confirmation briefings Common sense

WHY USE THE ORM PROCESS?

Traditional versus ORM approach to managing risk
Traditional Random, Individual Dependent Common Sense Uninformed Decision Can do regardless of risk Compliance Based Reactive ORM Systematic Methodical Informed Decision Conscious decision based on risk vs. benefit Involvement & Empowerment Proactive

WHY USE THE ORM PROCESS?

Two Goals of Leadership.
Leadership failures contribute to unnecessary mishaps causes. If principles of ORM taught and effectively applied.

ORM TERMS
Hazard
Condition with the potential to cause.

Cause
Produces effect, result, or consequence.

ORM TERMS
Hazard versus cause
Method of clarifying if hazard or cause. If more specific causes are not identified. Hazard at one echelon may be a Cause at another echelon.

ORM TERMS
Risk
Expression of possible loss in terms Severity and probability.

Risk Assessment
Detecting hazards/assessing associated risks.

ORM TERMS
Severity
Expected consequence of an event

Controls
Actions to eliminate hazards, or reduce their risk.

ORM TERMS
Three types of control
Engineering. Administrative. Personal protective equipment.

ORM TERMS
Engineering
Design, material selection, or substitution. Usually eliminate hazard. May not be technically/economically feasible.

ORM TERMS
Administrative
Specific administrative actions. Train Marines recognize hazards. Limit number exposure to a hazard. Effective in reducing risk when used properly

ORM TERMS
Personal Protective Equipment
Serves as a barrier. Least effective type of control. Used when other controls do not reduce risk to an acceptable level.

FIVE STEP PROCESS OF ORM

5-step Process
Identify hazards Assess hazards Make risk decisions Implement controls Supervise

FIVE STEP PROCESS OF ORM

Identify Hazards
Begins by conducting Operational analysis. List major steps of the Operation. Preliminary hazard analysis:
List all hazards List all possible causes

FIVE STEP PROCESS OF ORM

Assess Hazards
Degree of risk identified Determine in terms of Severity and Probability Risk assessment matrix (RAC)
Provides consistent framework Show comparison of perceived risk Prioritizes hazards

RISK ASSESSMENT CODE MATRIX

Risk Assessment Code 1 - CRITICAL
2 - SERIOUS 3 - MODERATE 4 - MINOR 5 - NEGLIGABLE

Mishap Probability
Frequent Likely Occasional Unlikely A B C D

Hazard Severity

Catastrophic - I Critical - II Marginal III Negligible - IV

1 1 2 3

1 2 3 4

2 3 4 5

3 4 5 5

RISK ASSESSMENT CODE (RAC)

Determine Hazard Severity:
Catastrophic Critical Marginal Negligible I II III IV

RISK ASSESSMENT CODE (RAC)

Determine Mishap Probability:
Frequent Likely Occasional Unlikely A B C D

RISK ASSESSMENT CODE (RAC)

Determine Risk Assessment Code:
Critical Serious Moderate Minor 1 2 3 4

Negligible 5

RISK ASSESSMENT CODE (RAC)

Make Risk Decisions
Develop controls for each hazard. Controls developed for most serious hazards first. Determine residual risk. Make risk decisions. Accept risk. Communicate with higher authority.

RISK ASSESSMENT CODE (RAC)

Implement Controls
Engineering, administrative, and/or personal protective equipment Incorporate selected controls:
SOP, LOI, orders, briefs, training, rehearsals

Communicate selected controls to lowest level:

Who will do what by when?

RISK ASSESSMENT CODE (RAC)

Supervise
Enforce standards and controls:
Ensure Marines are performing tasks to standard. Ensure controls are in place.

Take corrective action.

Remain alert for changes/unexpected developments.

RISK ASSESSMENT CODE (RAC)

ORM in BAMCIS
BAMCIS Begin Planning Arrange Recon Make Recon Complete the Plan Issue the Order Supervise ORM Identify Hazards Assess the Hazards Make Risk Decisions Implement Controls Supervise

THREE LEVELS OF APPLYING ORM

Commanders determine which level based on time available, proficiency, and assets.
Time Critical Deliberate In-Depth

THREE LEVELS OF APPLYING ORM

Time Critical ORM
On-the-run mental/oral review. Not recorded on paper. Normally applied in execution phase. Unexpected events and changes.

THREE LEVELS OF APPLYING ORM

Deliberate ORM
Application of complete 5 step process. Recorded on paper. Applied in planning operations. Used for evaluating SOPs, training, maintenance procedures, damage control.

THREE LEVELS OF APPLYING ORM

In-depth ORM
More detailed risk assessment. Advanced tools. Professional expertise needed. Used in long term planning.
Complex operations. Introducing new equipment, tactics, or training curriculum.

PRINCIPLES OF THE ORM PROCESS

Accept Risk When Benefits Outweigh the Cost Accept No Unnecessary Risk Anticipate and Manage Risk by Planning Make Risk Decisions at the Right Level

RESPONSIBILITIES OF IMPLEMENTING ORM

Unit commanders
Provide ORM training. Incorporate into briefs, notices, and written plans. Risk assessment for all new/complex evolutions. Address ORM.
Safety, training, and lessons learned reports.

RESPONSIBILITIES OF IMPLEMENTING ORM

SNCOs
Most experience/subject matter experts. Active role in identifying hazards/appropriate controls. Supervision/enforcement of standards.

RESPONSIBILITIES OF IMPLEMENTING ORM

NCOs
First line of supervision Make risk decisions daily

Individual Marine
Self-supervision (self-discipline) Perform assigned tasks to standard Recognize unsafe acts/conditions Take corrective action or report discrepancies

Questions
???

42