OPERATIONAL RISK MANAGEMENT Operational Risk Management (ORM) is the process of dealing with risk associated with NJROTC training activities, which includes risk assessment, risk decision making, and implementation of effective risk controls. The goal of our ORM Program is to optimize our training opportunities by managing risk to accomplish the mission with minimal to no injuries. ORM Terminology - Hazard : A condition with the potential to cause personal injury or death, property damage, or mission degradation. - Risk : An expression of possible loss in terms of severity and probability. - Severity : The worst credible consequence which can occur as a result of a hazard. - Probability : The likelihood that a hazard will result in a mishap or loss. - Risk Assessment : The process of detecting hazards and assessing associated risks. ORM Process 1. Identify Hazards 2. Assess Hazards 3. Make Risk Decisions 4. Implement Controls 5. Supervise Four Guiding Principles of the ORM Program 1. Accept risk when benefits outweigh the cost. 2. Accept no unnecessary risk. 3. Anticipate and manage risk by planning. 4. Make risk decisions at the right level. Levels of Application 1. Time-critical = On the run consideration of the 5 Steps 2. Deliberate = Application of the complete 5-Step Process 3 . In-depth = Complete 5-Step process with detailed analysis Risk Assessment Matrix When conducting a risk assessment, we factor in the severity of the hazard with the probability of occurrence, and then arrive at a risk assessment code to determine the risk level for our decision-making. Event:______________________________________________ Date/Time: ________/_________ Anticipated Environmental Conditions: _____________________________________________________________________________________________ _____________________________________________________________________________________________ _____________________________________________________________________________________________ Identified Hazard(s): _____________________________________________________________________________________________ _____________________________________________________________________________________________ _____________________________________________________________________________________________ Risk Assessment: Severity Categories (Circle One) - Category I: Hazard may cause death, loss of facility/asset or result in grave damage to school and/or NETC interests. - Category II: Hazard may cause severe injury, illness, property damage, damage to school and/or NETC interests or degradation to efficient use of assets. - Category III: Hazard may cause minor injury, illness, property damage, damage to school and/or NETC interests or degradation to efficient use of assets. - Category IV: Hazard presents a minimal threat to personnel safety or health, property, school and/or NETC interests or efficient use of assets. Probability Categories (Circle One) - Category A: Likely to occur immediately or within a short period of time. Expected to occur frequently to an individual or continuously to a group. - Category B: Probably will occur in time. Expected to occur several times to an individual frequently to a group. - Category C: May occur in time. Can reasonably be expected to occur some time to an individual or several times to a group. - Category D: Unlikely to occur. Risk Assessment: 5 – Negligible Risk 4 – Minor Risk 3 – Moderate Risk 2 – Serious Risk 1 – Critical Risk Local Controls to Mitigate: _____________________________________________________________________________________________ _____________________________________________________________________________________________ _____________________________________________________________________________________________ Pre-Planned Response: _____________________________________________________________________________________________ _____________________________________________________________________________________________ _____________________________________________________________________________________________ Emergency Contact Information: _____________________________________________________________________________________________ _____________________________________________________________________________________________ _____________________________________________________________________________________________ Lessons Learned: _____________________________________________________________________________________________ _____________________________________________________________________________________________ _____________________________________________________________________________________________