OPERATIONAL RISK MANAGEMENT Why have ORM for NJROTC

OPERATIONAL RISK MANAGEMENT

Why have ORM for NJROTC? Summer Camp Ø Drill Ø PRT Ø NJROTC picnic Ø Orientation trip Ø AMI Ø Sword Teams Ø

What we’ll cover today… * 5 -Step ORM Process * Causes of Risk * 4 ORM Principles * 3 Levels of ORM * Risk Assessment Matrix

Operational Risk Management ORM is the process of dealing with risk associated with NJROTC Unit operations, which includes risk assessment, risk decision making, and implementation of effective risk controls.

ORM ü A Decision Making Tool Should we do this or not? ü ü Increases Ability to Make Informed Decisions Reduces Risks to Acceptable Levels

ORM Goal The goal of ORM is to optimize operational capability and readiness by managing risk to accomplish the mission with minimal loss.

ORM Terms

ORM Terms Hazard: A condition with the potential to cause personal injury or death, property damage, or mission degradation.

ORM Terms Risk: An expression of possible loss in terms of severity and probability.

ORM Terms Severity: The worst credible consequence which can occur as a result of a hazard.

ORM Terms Probability: The likelihood that a hazard will result in a mishap or loss.

Physical Training Example Hazard Risk Bad Weather Slipping on track Improper Stretching Chance of muscle strain Before Exercise Running on Hard Pavement Chance of knee injury

ORM Terms Control: A method for reducing risk for an identified hazard by lowering the probability of occurrence, decreasing potential severity, or both.

ORM Terms Risk Assessment: The process of detecting hazards and assessing associated risks.

ORM Process Risk Assessment 1. 2. 3. 4. 5. Identify Hazards Assess Hazards Make Risk Decisions Implement Controls Supervise

Causes of Risk * Change - The “Mother” of Risk * Resource Constraints * New Technology * Complexity * Stress * TEENAGERS!!!!

Causes of Risk * Societal Constraints * Environmental Influences * Human Nature * Speed/Tempo of Operation * High Energy Levels

Four ORM Principles 1. Accept risk only when the benefits outweigh the probable costs. 2. Accept no unnecessary risk. 3. Anticipate and manage risk by planning. 4. Empower and train subordinates to make risk decisions at the right level.

ORM Levels of Application 1. Time-critical - On the run consideration of the 5 Steps 2. Deliberate - Application of the complete 5 -Step Process 3. In-depth - Complete 5 -Step Process with Detailed Analysis f

Risk Assessment Matrix When conducting a risk assessment, you must factor in the severity of the hazard, the probability of occurrence, and assign a risk assessment code to determine the risk level.

Risk Assessment Matrix Severity: ü Category I (Critical) Hazard may cause death, loss of facility/asset or result in grave damage to national interests.

Risk Assessment Matrix Severity: ü Category II (Serious) Hazard may cause severe injury, illness, property damage, damage to national or service interests or degradation to efficient use of assets.

Risk Assessment Matrix Severity: ü Category III (Moderate) Hazard may cause minor injury, illness, minor property damage, minor damage to national, service or command interests or minor degradation to efficient use of assets.

Risk Assessment Matrix Severity: ü Category IV (Minor) Hazard presents a minimal threat to personnel safety or health, property, national, service or command interests or efficient use of assets.

Risk Assessment Matrix Probability: ü Sub Category A Likely to occur immediately or within a short period of time. Expected to occur frequently to an individual item or person or continuously to a group.

Risk Assessment Matrix Probability: ü Sub Category B Probably will occur in time. Expected to occur several times to an individual item or person or frequently to a group.

Risk Assessment Matrix Probability: ü Sub Category C May occur in time. Can reasonably be expected to occur some time to an individual or several times to a group.

Risk Assessment Matrix Probability: ü Sub Category D Unlikely to occur.

Risk Assessment Matrix Risk Assessment Code (RAC): The RAC is an expression of risk which combines hazard severity and mishap probability. Using the matrix, the RAC is expressed as a single number that can be used to help determine hazard abatement priorities.

Risk Assessment Matrix PROBABILITY OF OCCURENCE S E V E R I Likely Probably May Unlikely A B C D Critical 1 1 2 3 Serious 1 2 3 4 Moderate 2 3 4 5 Minor 3 4 5 5 T Y

ORM vs. Non-standard Approach Systematic Random, Individual-Dependent Proactive Reactive Integrates All Types of Risk Into Plan Safety As After-thought Once Plan is Done Common Process Terms Non-standard Conscious Decision “Can Do” Regardless of Risk Based on Risk & Benefit

The Benefits of ORM > Reduction in Mishaps > Improved Mission Effectiveness

Questions? ?