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Operational Risk Management (ORM) 721 Air Mobility Operations Group. 1. Identify the Threats of Harm 2. Assess the Risk 3. Analyze Risk Control Measures.

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Presentation on theme: "Operational Risk Management (ORM) 721 Air Mobility Operations Group. 1. Identify the Threats of Harm 2. Assess the Risk 3. Analyze Risk Control Measures."— Presentation transcript:

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2 Operational Risk Management (ORM) 721 Air Mobility Operations Group. 1. Identify the Threats of Harm 2. Assess the Risk 3. Analyze Risk Control Measures 4. Make Control Decisions 5. Implement Risk Controls 6. Supervise and Review

3 ORM PUBLICATIONS AFPD 90-9, Operational Risk Management AFI , Operational Risk Management AFPAM , Operational Risk Management Guidelines and Tools. 1. Identify the Threats of Harm 2. Assess the Risk 3. Analyze Risk Control Measures 6. Supervise and Review 5. Implement Risk Controls 4. Make Control decisions

4 WHAT IS ORM? ORM is a logic-based common- sense approach to making calculated decisions on human and material factors before, during, and after missions, activities, and operations both on- and off-duty.. 1. Identify the Threats of Harm 2. Assess the Risk 3. Analyze Risk Control Measures 6. Supervise and Review 5. Implement Risk Controls 4. Make Control decisions

5 WHAT IS ORM?. 2. Assess the Risk 3. Analyze Risk Control Measures 6. Supervise and Review 5. Implement Risk Controls 4. Make Control decisions 1. Identify the Threats of Harm Using common sense and not being stupid! Problem -- Common sense isnt always common and to some people it doesnt always make sense.

6 OPERATIONAL RISK MANAGEMENT Why do I need it? –It could save your life Who should use it? –Everyone When do I use it? –All of the time--on-and-off duty How do I use it? –Read on. 2. Assess the Risk 3. Analyze Risk Control Measures 6. Supervise and Review 5. Implement Risk Controls 4. Make Control decisions 1. Identify the Threats of Harm

7 TYPES OF ORM Time- Critical (done in your head) –Takes only a minute or so to do –You do this each day (hopefully) Deliberate –This may take a few hours or it could take weeks Strategic –Very long term (could take months or years). 2. Assess the Risk 3. Analyze Risk Control Measures 6. Supervise and Review 5. Implement Risk Controls 4. Make Control decisions 1. Identify the Threats of Harm

8 Example of Time-Critical ORM You just finished working a 12- hour shift and your buddy says, Why dont we drive to Dallas? What are the risks? How serious are the risks? Analyze the situation Make your decisions and implement risk controls. 1. Identify the Threats of Harm 2. Assess the Risk 3. Analyze Risk Control Measures 6. Supervise and Review 5. Implement Risk Controls 4. Make Control decisions

9 Example of Time-Critical ORM Risks –Falling asleep while driving –Running off the road –Colliding with an on-coming vehicle How serious? –Very, you could kill someone - maybe you Analyze the situation... –Sure, Ill go to Dallas---but first I need some sleep. 2. Assess the Risk 3. Analyze Risk Control Measures 6. Supervise and Review 5. Implement Risk Controls 4. Make Control decisions 1. Identify the Threats of Harm

10 Fundamental Goals of ORM Enhance mission effectiveness Integrate ORM into mission processes Train all AF personnel to manage risks in all their on-and off-duty activities Identify opportunities to increase Air Force combat effectiveness. 2. Assess the Risk 3. Analyze Risk Control Measures 6. Supervise and Review 5. Implement Risk Controls 4. Make Control decisions 1. Identify the Threats of Harm

11 ORM PRINCIPLES Accept no unnecessary risks Make risk decisions at the appropriate level Accept risks when benefits outweigh costs Integrate ORM into AF doctrine and planning at all levels. 2. Assess the Risk 3. Analyze Risk Control Measures 6. Supervise and Review 5. Implement Risk Controls 4. Make Control decisions 1. Identify the Threats of Harm

12 Accept No Unnecessary Risk Risk is the probability and severity of failure or loss resulting from exposure to various threats of harm Three reasons for unnecessary risk: –Not aware of the risk –An incorrect assessment of cost versus benefit –Interpreting bold risk taking as gambling. 2. Assess the Risk 3. Analyze Risk Control Measures 6. Supervise and Review 5. Implement Risk Controls 4. Make Control decisions 1. Identify the Threats of Harm

13 Make Risk Decisions at the Appropriate Level Who will answer in the event of an accident? Who is the senior person at the scene of the task? Who knows the full benefits and cost of a risk? What level makes the most operational sense?. 2. Assess the Risk 3. Analyze Risk Control Measures 6. Supervise and Review 5. Implement Risk Controls 4. Make Control decisions 1. Identify the Threats of Harm

14 Accept Risks When Benefits Outweigh the Costs The three key questions are: –What is the potential cost of a risk versus the benefit it may produce? –What is the cost of taking a risk versus the cost of not taking a risk? –Do the total benefits outweigh the total costs?. 2. Assess the Risk 3. Analyze Risk Control Measures 6. Supervise and Review 5. Implement Risk Controls 4. Make Control decisions 1. Identify the Threats of Harm

15 Integrate ORM Into AF Doctrine and Planning At all Levels Risks are more easily assessed and managed in the planning stages of a task Early integration provides the decision maker the greatest opportunity to apply ORM principles Use the Air Force 6-Step Process. 2. Assess the Risk 3. Analyze Risk Control Measures 6. Supervise and Review 5. Implement Risk Controls 4. Make Control decisions 1. Identify the Threats of Harm

16 Step 1 - Hazard ID  Threats of Harm – Any real or potential condition that can cause mission degradation, injury, illness, or death to personnel or property damage to or loss of equipment or property

17 Step 2 - Risk Assessment  Use the Risk Assessment Matrix to assign a Value to threats of harm (AFPAM ) Assessment Pitfalls: –Over Optimism - It cant happen to us. Were already doing it. –Inaccuracy - Misunderstood data –Alarmism - The skys falling! –Prejudice - Hidden agenda vs facts

18 Step 3 - Analyze Risk Control Measures  There are three actions involved in this step: – Identify Control Options –Determine Control Effects –Prioritize Risk Controls

19 Action 1 - Identify Control Measures  Reject - Risk Outweighs the Benefit Avoid - Do it a Different Way Delay - Problem May Go Away Transfer - Contract Out the Task Reduce - Incorporate Safety Devices

20 Action 2 - Determine Control Effects What is the impact on the probability and severity of the threat of harm? What will the risk control cost? How will various risk control options work together?

21 Action 3 - Prioritize Risk Controls  Get operator input  The best controls minimize the threats of harm to an acceptable level, while allowing completion of the mission.

22 Step 4 - Make Control Decisions  Select the best risk control Choose the right time to implement the control Decide on the appropriate level of implementation.

23 Step 5 - Implement Risk Controls  Make implementation clear –Involve all personnel and coordinate as needed Establish accountability –Who will be responsible Provide support –Give feedback on results

24 Why Implementation Sometimes Fails  Operators dislike it Leaders dislike it Its too costly Its misunderstood Wrong control for the problem

25 Step 6 - Supervise & Review Supervise - Assure controls are effective and detect needed changes Review - Was the benefit worth the cost Feedback - Cross talk and supply feedback up and down the chain of command

26 Final Thoughts  All AF instructions/directives incorporate ORM into processes and need continued emphasis  Some level of risk management must be used for all tasks and operations ORM is simply applying common sense on and off-duty

27 ORM Information For additional information Go to the Air Force Safety Center website at


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