Operational Risk Management (Orm)

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ORM works to:

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Minimizes risk to acceptable levels commensurate with
accomplishment

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Correct application of the ORM process will

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reduce mishaps and associated costs.

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Hazard

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Any issue, real or potential, that can cause
personal injury, death, property damage, mission degradation or damage to environment.

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Risk

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Chance of adverse outcome or bad consequences;
such as injury, illness, or loss. Risk level is expressed in terms of hazard probability or severity.

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Risk Assessment Code (RAC)

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An expression of risk
associated with a hazard that combines the hazard severity and mishap probability into a single Arabic numeral.

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The five-step ORM process includes:

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Identify Hazards (Step 1) Assess Hazards (Step 2) Make Risk Decisions (Step 3)Implement Controls (Step 4)
Supervise (Step 5)

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Deliberate

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Application of the complete five-step
process will aid in planning procedures.

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Accept Risk When

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Benefits Outweigh The Cost

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Accept No

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Unnecessary Risk

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Anticipate And Manage Risk By

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Planning

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Make Risk Decisions At The

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Right Level

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Category I

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The hazard may cause death, loss of or result in grave damage to national interests.

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Category II

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The hazard may cause severe injury, illness, property damage, damage to national or service interests, or degradation to efficient use of assets

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Category III

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The hazard may cause minor injury, illness, property damage, damage to national, service, or command interests, or degradation to efficient use of assets.

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Category IV

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The hazard presents a minimal threat to
personnel safety or health property, national, service, or command interests or efficient use of assets

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Subcategory A

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Likely to occur immediately or within a short period of time. Expected to occur frequently to an individual item or person or ontinuously to a fleet, inventory, or group.

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Subcategory B

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Probably will occur in time. Expected to occur several times to an individual item or person or frequently to a fleet, inventory, or group.

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Subcategory C

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May occur in time. Can reasonably be
expected to occur some time to an individual item or person or several times to a fleet, inventory, or group.

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Subcategory D

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Unlikely to occur.

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RAC Definitions: 5

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1 - Critical risk
2 – Serious risk
3 – Moderate risk
4 – Minor risk
5 – Negligible risk