Operational Risk Management ORM and the Driving Task

Operational Risk Management (ORM) and the Driving Task 1

Why ORM? 1999 • Estimated 6, 289, 000 police reported traffic crashes. • 41, 345 people killed. • 3, 200, 000 people injured. • Risk of crash involvement among drivers 16 -19 years old is 4 times the risk among older drivers. Sailors and Marines were among those casualties! 2

ORM TERMS Ù Hazard - A condition with the potential to cause illness, injury, death, property damage, or mission degradation. Ù Cause – Something that produces and effect, result, or consequence (i. e. , the person, event or condition responsible for an action or result). HAZARDS CAUSES Operating Equipment Operator Error - Mechanical Failure Weather LTA Clothing - Limited Visibility Change New hazards & reduced effectiveness of controls 3

ORM TERMS Ù Risk - An expression of possible loss in terms of severity and probability. Ù Risk Assessment - The process of detecting hazards and assessing associated risks. 4

ORM FIVE-STEP PROCESS • STEP #1: Identify Hazards • List major steps in your operation/task. • Legs of your driving trip, etc. • Conduct a preliminary hazard analysis. • List hazards associated with each step/leg of your trip. • List the possible causes of the hazards. 5

ORM FIVE-STEP PROCESS • STEP #2: Assess Hazards Determine degree of risk for each hazard. • Review Categories • Risk Assessment Codes • 1 = Critical • 2 = Serious • 3 = Moderate • 4 = Minor • 5 = Negligible • CAT I = Death, loss of asset • CAT II = Severe, injury • CAT III = Minor, injury • CAT IV = Minimal, injury MISHAP PROBABILITY RAC MATRIX HAZARD SEVERITY LIKELY PROBABLY MAY UNLIKELY CRITICAL 1 1 2 3 SERIOUS 1 2 3 4 MODERATE 2 3 4 5 MINOR 3 4 5 5 RISK ASSESSMENT CODE (RAC) 1 -Critical 2 -Serious 3 -Moderate 4 -Minor 5 -Negligible 6

ORM FIVE-STEP PROCESS • STEP #3: Make Risk Decisions • Develop controls for each hazard. • Reduce until benefit>risk. • Develop controls for most serious hazard first. • Assess each hazard again with controls in place. • Is the task worth the risk? 7

ORM FIVE-STEP PROCESS • STEP #4: Implement Controls • Incorporate your controls. • Communicate selected controls to the lowest level. 8

ORM FIVE-STEP PROCESS • STEP #5: Supervise • Enforce your standards and controls. • Remain alert for changes and unexpected developments. • Take corrective action if needed. 9

ORM QUESTIONS 10

ORM Principles ´ Accept risk when benefits outweigh the cost. ´ Accept no unnecessary risk. ´ Anticipate and manage risk by planning. ´ Make risk decisions at the right level. 11

ORM AND SAFE DRIVING ORM is a proven and successful tool for operational use, but it has equal application to many types of activities where there is risk associated. A good example is driver safety. Photo 12

WHY ORM WHEN DRIVING? • Average of 114 persons die each day in motor vehicle crashes – one every 13 minutes. • Vehicle occupants accounted for 85. 3% of traffic fatalities in 1998; remaining 14. 7% were pedestrians, pedal cyclists, and other non-occupants. • The Naval Safety Center asserts that driver safety is our #1 readiness issue. Sailors and Marines were among those casualties! 13

DRIVER SCENARIO • Your unit has been working extremely hard. • CO is granting a 3 -day weekend. • You plan a trip. Perception: Driving is not a high risk activity. Reality: Driving is a high risk activity. 14

STEP #1 – IDENTIFY HAZARDS • Outline the steps in your trip. • List hazards. • What could go wrong during the trip? • What causes things to go wrong? 15

STEP #1 – IDENTIFY HAZARDS • What could go wrong during the trip? Ø Ø Ø Ø FATIGUE VEHICLE BREAKDOWN DRUNK DRIVERS SPEEDING DIRECTIONALLY CHALLENGED ROAD CONSTRUCTION WEATHER & OTHER CONDITIONS • How can I prevent or diminish the associated risks? 16

STEP #2 – ASSESS HAZARDS MISHAP PROBABILITY RAC MATRIX HAZARD SEVERITY LIKELY PROBABLY MAY UNLIKELY CRITICAL 1 1 2 3 SERIOUS 1 2 3 4 MODERATE 2 3 4 5 MINOR 3 4 5 5 RISK ASSESSMENT CODE (RAC) 1 -Critical 2 -Serious 3 -Moderate 4 -Minor 5 -Negligible FATIGUE – 1/1 VEHICLE BREAKDOWN – 3/5 WEATHER & OTHER CONDITIONS – 1/1 DRUNK DRIVERS – 1/2 SPEEDING – 1/3 DIRECTIONALLY CHALLENGED – 3/5 ROAD CONSTRUCTION – 3/4 DIRECTIONALLY CHALLENGED – 3/5 WEATHER & OTHER CONDITIONS – 1/1 VEHICLE BREAKDOWN – 3/5 17

STEP #3 – MAKE RISK DECISIONS FOUR MAJOR AREAS: 1. 2. 3. 4. REVISE? DEVELOP CONTROLS. REASSESS HAZARDS FOR RESIDUAL RISK. DOES THE TASK BENEFIT OUTWEIGH THE RISK INVOLVED? SHOULD YOU CANCEL, POSTPONE, OR 18

STEP #4 – IMPLEMENT CONTROLS • MORAL COURAGE • JUDGMENT • COMMUNICATION SKILLS 19

STEP #5 - SUPERVISE ü Enforce standards and controls. ü Remain alert for changes. ü Take corrective action when and where necessary. 20

REVIEW Principles Accept risk when benefits outweigh the cost. Values Accountable for actions. . . Be there for your shipmates… Accept no unnecessary risk. ‘Work smart’ avoid shortcuts/steps that may cause injury or damage… Minimize risk taking … Anticipate and manage risk by planning. Plan ahead. . . Take time to plan… Ask yourself the right questions. . . Make risk decisions at the right level. Honor Support the chain of command. . . Know that you have choices… Do the right thing. . . right… Courage Commitment 21

SUMMARY 22