Operational Risk
Management
1
Overview
• Operational Risk Management (ORM)
 Definition
 Purpose and Goal
 Principles
Overview (Continued)
• ORM Process






Step 1:
Step 2:
Step 3:
Step 4:
Step 5:
Step 6:
Identify the Hazards
Access the Risk
Analyze Risk Control Measures
Make Control Decisions
Implement Risk Controls
Supervise and Review
• ORM Responsibilities
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 offthe-job
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
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
ORM
6. Supervise
and Review
5. Risk
Control
Implement
4. Make
Control
Decisions
1. Identify
the Hazards
2. Assess
the Risks
3. Analyze
Risk Control
Measures
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
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
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
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
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
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
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
Responsibilities
•
•
•
•
Starts with the commander
Supported by the staff
Implemented by the supervisors
Rests with all individuals
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?
Questions?
17
Summary
• Operational Risk Management (ORM)
 Definition
 Purpose and Goal
 Principles
Summary (Continued)
• ORM Process






Step 1:
Step 2:
Step 3:
Step 4:
Step 5:
Step 6:
Identify the Hazards
Access the Risk
Analyze Risk Control Measures
Make Control Decisions
Implement Risk Controls
Supervise and Review
• ORM Responsibilities
ORM
6. Supervise
and Review
5. Risk
Control
Implement
4. Make
Control
Decisions
1. Identify
the Hazards
2. Assess
the Risks
3. Analyze
Risk Control
Measures
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.
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