risk management cpt j. craig sg 190 risk benefit
TRANSCRIPT
Risk Management
Risk Management
CPT J. Craig
SG 190
RiskBenefit
Risk Management
Purpose
Introduce the concept of risk management
References:•FM 101-5, Appendix J•http://safety.army.mil/
Risk Management
Outline
• What is Risk Management?
• Why Risk Management?
• Key Definitions
• The Risk Management Process
• Risk Management Integration
• Summary
• Conclusion
Risk Management
What is Risk Management?
• Originally for high-risk complex activities (Space, Aviation)
• Applicable to all Army operations at all levels
• Systems based concept
• Not a Science; not “Common Sense”
Not Risk Avoidance!
Risk Management
Why Risk Management?
• Preserve combat power
• Because it works!– Korean cold weather example– Dramatic decrease in accidents Army-wide
• FY 96 Accident Rates
Total Accident Rate 4.22 per 1000 soldiers record lowaccording to Army Safety Center, Jan 97
Total Accident Rate 4.22 per 1000 soldiers record lowaccording to Army Safety Center, Jan 97
Risk Management
Key Definitions
• Hazard
• Risk– Probability– Severity
• Risk Assessment
• Risk Management
• Residual Risk
• Gambling
Bold, Aggressive Risk Taker
vs.Gambler
?
Risk Management
The Process
Event
Hazard 1Hazard 2Hazard 3
1. Hazard Identification
Hazard 1 - Probability/SeverityHazard 2 - Probability/SeverityHazard 3 - Probability/Severity
2. Hazard Assessment
OptionsControl AControl BControl CControl D
3. Options and Decisions
PlansOrdersSOPs
4. Implementation
5. Supervise
Risk Management
The Process
• Compressible, flexible
• Level of detail depends on:– Time available– Level of risk
• Control all risks that can be controlled
• Accept no unnecessary risks
• Make decisions at appropriate level
Risk Management
Risk Management Integration
• Embed RM in all Army does
• Incorporates AAR– Were controls communicated?– Were controls implemented?– Was Risk Management effective?
• Risk Management Integration Plan– Draft dated 24 Dec 97
The Next Generation
Risk Management
Summary
• What Risk Management is
• Why Risk Management is important
• Definitions
• The Risk Management process
• Risk Management Integration
Questions?
Risk Management
Conclusion
“Risk management helps us preserve combat power and retain the flexibility for bold and decisive action. Proper risk management is a combat multiplier that we can ill afford to squander….”
General Reimer