OPERATIONAL RISK MANAGEMENT
OPERATIONAL RISK MANAGEMENT
(ORM)
• ORM is a tool to be used In support of OSHA’s Voluntary Protection Program (VPP) and Marine Corps Base Camp Lejeune’ s desire to Improve workplace safety. – ORM training is a Tool for Managers and Employees to use to ensure hazards and risks have been identified
– it gives all MCCS employees a way to approach tasks with a better Awareness of the obstacles and enables us to Control the risk of encountering those obstacles. ORM Topics
 Purpose of ORM
 ORM Terms
 Risk Assessment
 5-Step ORM Process
 Benefits of ORM
 Summary
Purpose of ORM
To Ensure only Necessary Risks are Taken
Purpose of ORM cont.
IS the process of dealing with risk operations,
Which include;
 Risk assessment
 Risk decision
 Making, and implementation of effective risk
controls.
ORM Terms
Hazard:
A condition with the potential to cause
personal injury or death, property
damage, or work degradation.
ORM TERMS cont. Examples of Hazards
•
Knife - Cuts
•
Asbestos - Mesothelioma
•
Electricity - Shock
•
Wet floor - Slips, falls
ORM Terms cont. Risk:
•An expression of possible loss in
terms of severity and probability.
ORM Terms cont. Examples of Risk
•
Knife ‐ Cuts
•
Asbestos ‐ Mesothelioma
•
Electricity ‐ Shock
•
Wet floor ‐ Slips, falls
RISK ASSESSMENT The process of detecting Hazards and
assessing associated Risks.
–
• Hot iron
• Children in the area.
Risk –
• Burns from iron
• Hit by falling iron
RISK ASSESSMENT cont. Control:
A method for reducing risk for an identified hazard by
lowering the probability of occurrence, decreasing
potential severity, or both.
–
• Hot iron
• Children in the area.
RISK –
• Hit by falling iron
• Burns from iron
Control • Keep the child out of the room containing the iron
• Keep the iron and cord out of reach of child
RISK ASSESSMENT cont.
SEVERITY & PROBABILITY Chart
RISK ASSESSMENT CONT.
SEVERITY & PROBABILITY Severity:
 The worst credible consequence which can occur
as a result of a hazard.
 Catastrophic
 Critical
 Moderate
 Negligible
RISK ASSESSMENT CONT. SEVERITY & PROBABILITY Probability:
 The likelihood that a hazard will result in a
mishap or loss.
 Likely
 Probably
 May
 Unlikely
The 5 step ORM Process
1. Identify Hazards
2. Assess Risks
3. Controls
4. Implement Controls
5. Supervise
Lets see how this process works step by step;
The 5 step ORM Process cont.
1. Identify Hazards
Motor vehicle mishap (new car)
• Car problem
• Flat tire
• Out of gas
• Lost
• Late
The 5 step ORM Process cont.
2. Assess Risks – Using the Risk assessment matrix (severity and probability), select the possible risks •
•
•
•
•
Car problem - 2
Flat tire - 2
Out of gas - 3
Lost - 5
Late – 3
Note: These codes may be Different each time,
depending On the situation i.e. Time of day,
Location, age of car etc.
The 5 step ORM Process cont.
3. Develop Controls & Make Decisions
•
•
•
•
•
Car problem – Operational (OP)
check of vehicle
Flat tire – Check tires, check spare
Out of gas – OP check
Lost – Get map/GPS
Late – Leave early, plan route
The 5 step ORM Process cont.
3. (cont.) Develop Controls & Make Decisions
• The use of these (4) principles should
assist you in your decision making
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.
The 5 step ORM Process cont.
4. Implement Controls
• Car problem - Make repairs
• Flat tire - Spare tire & equipment
to change tire
• Out of gas - Put gas in vehicle
• Lost - Plan route, have a map,
carry a cell phone.
• Late - Leave early
5 step ORM Process cont.
5. Supervise & Evaluate
•
•
•
•
•
Car problem – Spot check repairs
Flat tire – Use checklist
Out of gas – Spot checks
Lost – Use buddy system for route plan
Late – Self discipline
5 step ORM Process cont.
• Goal:
 Improved Decision Making

Increase the Ability to Make Informed
decisions

Reducing risks to acceptable Levels
The Benefits of ORM
> Reduction in Mishaps
> Improved Job Performance
QUIZ
1. A condition with the potential to cause personal injury or death, property damage, or work degradation is called what?
a. Risk
b. Hazard
2. ORM is a ________ step process.
a. 3
b. 4
c. 5
3. The second step in the ORM process would be what?
a. Develop Controls & Make Decisions b. Implement Controls
c. Assess Risks Summary
•
ORM is a five step process. When followed it gives all MCCS employees a way to approach tasks at hand with a better awareness of the obstacles along the way that may cause us to fail and enables us to control the risk of encountering those obstacles.
QUIZ Answers
1. A condition with the potential to cause personal injury or death, property damage, or work degradation is called what?
b. Hazard
2. ORM is a ________ step process.
c. 5
3. The second step in the ORM process would be what?
c. Assess Risks