OPERATIONAL RISK MANAGEMENT The Benefits of Risk Management

OPERATIONAL RISK MANAGEMENT

The Benefits of Risk Management • Reduction in Material and Property Damage. • Effective Mission Accomplishment. • Reduction in Serious Injuries and Fatalities.

Risk Management Terms • Hazard • Risk Assessment • Risk Management • Gambling

Hazard A Condition With the Potential For Causing Injury, Damage, Or Mission Degradation.

RISK AN EXPRESSION OF POSSIBLE LOSS IN TERMS OF SEVERITY AND PROBABILITY

RISK ASSESSMENT Using sound concepts to Detect, HAZARDS and Estimate the Risk they Pose.

OPERATIONAL RISK MANAGEMENT The Process of Dealing With Risk Associated With Military Operations, Which Includes Risk Assessment, Risk Decision Making Implementation of Risk Controls.

GAMBLING Making Risk Decisions Without Reasonable or Prudent Assessment or Management of the Risk Involved

RISK MANAGEMENT PROCESS IDENTIFY HAZARDS ASSESS HAZARDS MAKE RISK DECISIONS IMPLEMENT CONTROLS SUPERVISE

IDENTIFY HAZARDS Operational Analysis Preliminary Hazard Analysis 1. List Hazards 2. List Possible Causes of Hazards Tools

ASSESS HAZARDS • Prioritize Identified Hazards Severity of Possible Loss Probability of Possible Loss • Tool Risk Assessment Matrix

MAKE RISK DECISIONS • Consider Risk Control Options – Start with Most Serious Risk First – Refer to preliminary Hazard Analysis Causes • Does Benefit Outweigh Risk • Communicate with Higher Authority if Required

IMPLEMENT CONTROLS • Administrative Controls • Engineering Controls • Personal Protective Equipment

SUPERVISE • Monitor for Effectiveness of Controls • Watch for Changes

OPERATIONAL RISK MANAGEMENT Levels of Application • Hasty- On the Run Consideration • Deliberate- Application of the Complete 5 -Step Process • In-Depth- Complete 5 -Step Process With Detailed Analysis

RISK MANAGEMENT RULES ~ Integrate Into Planning ~ Accept No Unnecessary Risks ~ Make Risk Decisions at the Proper Level ~ Accept Risk If Benefits Outweigh the Cost

SUMMARY RISK MANAGEMENT IS A SYSTEMATIC WAY OF THINKING THE RISK MANAGEMENT PROCESS INCREASES AWARENESS OF HAZARDS AND RISKS INVOLVED IN AN OPERATION