Aerospace Physiologist Internship Board

Front 1

State the pupose of Operational Risk Management (ORM).

Back 1

Navy Operational Risk Management (ORM) Program

The Navy's ORM program is directed by OPNAVINST 3500.39A. It states that the ORM process:

Is a decision-making tool used by people at all levels to increase operational effectiveness by anticipating hazards and reducing the potential for loss, thereby increasing the probability of a successful mission.

Increases our ability to make informed decisions by providing the best baseline of knowledge and experience available.

Minimizes risks to acceptable levels, commensurate with mission accomplishment. The amount of risk we will take in war is much greater than that we should be willing to take in peace, but the process is the same. Applying the ORM process will reduce mishaps, lower costs, and provide for more efficient use of resources.

Front 2

List the five-step process of ORM.

Back 2

The Five Step ORM Process

Later we will examine each of the steps in detail, but in a nutshell, the steps involved in performing a risk assessment are:

Step 1: Identify Hazards - Consider the major steps in an operation, identify any real or potential condition that can cause mission degradation, injury, illness, death to personnel or damage or loss of equipment or property.

Step 2: Assess Hazards - For each hazard determine the degree of risk in terms of probability and severity of loss from exposure to the hazard.

Step 3: Make Risk Decisions - Develop possible risk control options and evaluate their cost and benefit. The appropriate decision-maker uses cost versus benefit analysis to choose the best controls.

Step 4: Implement Risk Controls - Plan for the commitment of resources to implement control(s) to eliminate the hazard or reduce the risk.

Step 5: Supervise - Proactive and personal follow-up on effectiveness of
control(s).

Front 3

Identify the three levels the ORM process utilizes based upon time and assets available.

Back 3

1. Time-critical
2. Deliberate
3. In-depth

Front 4

Identify the four principles which guide the ORM process.

Back 4

ORM Principles

ORM has four key principles that govern its application. These underlying principles should be considered before, during, and after every application of the five-step process.

1. Accept risk when benefits outweigh the cost.

Even high-risk endeavors may be undertaken when there is a clear knowledge that the sum of the benefits exceeds the sum of the costs. ORM is about controlling risk, not avoiding all risk.

2. Accept no unnecessary risk.

Of course, all Navy missions and daily routines involve risk. You must accept necessary risk required to successfully complete the mission or task. Unnecessary risk comes without a commensurate return, in terms of real benefits or available opportunities. ORM exposes and avoids unnecessary risks.

3. Anticipate and manage risk by planning.

Risks are more easily controlled when they are identified early in the planning process.

4. Make risk decisions at the right level.

Those accountable for the success or failure of the mission must be included in the risk decision process. This establishes clear accountability. Commanders must ensure that subordinates know how much risk they can accept and when they must elevate the decision to a higher level.