OPERATIONAL RISKOPERATIONAL RISKMANAGEMENTMANAGEMENT

The Benefits of Risk The Benefits of Risk ManagementManagement

• Reduction in Material and Property Damage.

• Effective Mission Accomplishment.

• Reduction in Serious Injuries and Fatalities.

Risk Management TermsRisk Management Terms

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

HazardHazard

A Condition With the PotentialFor Causing Injury, Damage,Or Mission Degradation.

RISKRISK

AN EXPRESSION OF POSSIBLE

LOSS IN TERMS OF SEVERITY

AND PROBABILITY

RISK ASSESSMENTRISK ASSESSMENT

Using sound concepts to Detect,

HAZARDS and Estimate the Risk

they Pose.

OPERATIONAL RISK OPERATIONAL RISK MANAGEMENTMANAGEMENT

The Process of Dealing With Risk Associated With

Military Operations, Which Includes

Risk Assessment,

Risk Decision Making

Implementation of Risk Controls.

GAMBLINGGAMBLING

Making Risk Decisions Without

Reasonable or Prudent Assessment

or Management of the Risk Involved

RISK MANAGEMENT RISK MANAGEMENT PROCESSPROCESS

IDENTIFY HAZARDSIDENTIFY HAZARDS

ASSESS HAZARDSASSESS HAZARDS

MAKE RISK DECISIONSMAKE RISK DECISIONS

IMPLEMENT CONTROLSIMPLEMENT CONTROLS

SUPERVISESUPERVISE

IDENTIFY HAZARDSIDENTIFY HAZARDS

Operational Analysis

Preliminary Hazard Analysis 1. List Hazards 2. List Possible Causes of Hazards

Tools

ASSESS HAZARDSASSESS HAZARDS

• Prioritize Identified Hazards

Severity of Possible Loss

Probability of Possible Loss

• Tool

Risk Assessment Matrix

MAKE RISK DECISIONSMAKE 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 CONTROLSIMPLEMENT CONTROLS

• Administrative Controls

• Engineering Controls

• Personal Protective Equipment

SUPERVISESUPERVISE

• Monitor for Effectiveness of Controls

• Watch for Changes

OPERATIONAL RISK OPERATIONAL RISK MANAGEMENTMANAGEMENT

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 RISK MANAGEMENT RULESRULES

~ Integrate Into Planning

~ Accept No Unnecessary Risks

~ Make Risk Decisions at the Proper Level

~ Accept Risk If Benefits Outweigh the Cost

SUMMARYSUMMARY

RISK MANAGEMENT IS A SYSTEMATIC WAY OF THINKING

THE RISK MANAGEMENT PROCESS INCREASES AWARENESS OF HAZARDS AND RISKS INVOLVED IN AN OPERATION