Risk Benefit Risk Management SSG MACK

Introduce the concept of risk management Purpose Introduce the concept of risk management References: FM 101-5, Appendix J http://safety.army.mil/

Task, Conditions, Standards Task: Verify the implementation of the risk management process at company level. Conditions: Given a scenario, with a complete risk management worksheet, in a classroom environment and student handouts. Standards: Make a written report that correctly identifies the hazards associated with the mission or task, the level of risk for each identified hazard, and the initial overall level of risk. I intend to step through the key elements of the Army’s Risk Management program and briefly cover the process involved, starting with what is Risk Management and where did it come from? After talking about the process itself, I’ll briefly discuss the next step in Risk Management - Risk Management Integration. <SLIDE>

Outline What Risk Management Why Risk Management Definitions The Risk Management process Risk Management Integration Risk Management Matrix Video/Scenario Summary conclusion I intend to step through the key elements of the Army’s Risk Management program and briefly cover the process involved, starting with what is Risk Management and where did it come from? After talking about the process itself, I’ll briefly discuss the next step in Risk Management - Risk Management Integration. <SLIDE>

What is Risk Management? Risk management is the best process for protecting the force. It provides a systematic, logical approach to identifying and controlling hazards that endanger our resources. Risk management supports and encourages initiative allowing flexibility, adaptability and eagerness to act. It is not just related to safety; it applies to all elements or force protection in all situations and environments

Why Risk Management? Preserve combat power Because it works! - Dramatic decrease in accidents Army-wide FY 96 Accident Rates Total Accident Rate 4.22 per 1000 soldiers record low according to Army Safety Center, Jan 97

Key Definitions Hazard – A condition with potential of causing injury to personnel, damage to equipment. Risk – An expression of possible loss over a specific period of time or number of operational cycles. Risk Assessment – The process of detecting hazards systematically assessing their overall risk Gambling – The process of making risk decisions without apply the risk management process

Key Definitions Tactical Risk: Risk associated with hazards that exist because of the presence of the enemy or an adversary. Accident Risk: Includes all operation risk considerations other than tactical risk, and can include activities associated with hazards concerning friendly personnel, equipment readiness, and environment conditions.

Risk Management Process IDENTIFY HAZARDS ASSESS HAZARDS MAKE RISK DECISION/DEVELOP CONTROLS IMPLEMENT CONTROLS SUPERVISE <BUILD> A Hazard is any real or potential condition that can cause injury, illness or death of personnel; damage to or loss of equipment or property; or mission degradation. <BUILD> A Risk is the chance of hazard or bad consequences; it’s exposure to the chance of injury or loss. It is expressed in terms of hazard probability - how likely it is to occur?, and severity - how bad is it if it does happen. <BUILD> Risk Assessment comprises the first two steps of risk management. It is the process where we identify hazards and systematically assess their overall level of risk. <BUILD> Risk Management, on the other hand, includes the process of making decisions and taking actions to reduce the effects of the identified hazards. <BUILD> Residual Risk is the level of risk remaining after controls and countermeasures have been implemented. Risk management attempts to bring residual risk down to acceptable levels. <BUILD> Gambling, compared to risk management, is making non-systematic risk decisions. The difference between a bold aggressive risk taker and a gambler is that the risk taker has done the risk management process and can reasonably predict the outcome. The gambler is only guessing. Let’s look at the actual risk management process itself. <SLIDE>

The Process RISK MANAGEMENT PROCESS 2. Assess Hazards 3. Develop Controls RISK MANAGEMENT PROCESS 4. Implement controls 1. Identify Hazards 5. Supervise

The Process Step 1 - Identify Hazards: Consider all aspects of current and future situations, environment, and know historical problem areas. Example of some Hazards: Time for mission prep & execution Terrain(rough, hills, swamp, etc Transportation to and from the operation site Skill level of personnel Intensity of operation(probability of taking shortcuts

The Process Step 2 – Assess Hazards: Assess hazards to determine their level of risk on the mission/task. Determine the initial overall level of risk. Mission – routine, complex, “ no sweat” Enemy – combat or training Terrain – water, cliffs, swamps mountains Troops – training, physical condition, sleep plans, morale Time – adequate for planning, for the mission Hill vs Mountain

The Process Step 3 – Develop controls: Decide what controls are needed to reduce the hazards. There will always be some element of risk; we can never completely eliminate it, but we must minimize risk by controlling all the elements that we can. Reduce Risks Modify plan Modify Training Inform the troops Do mission benefits outweigh the risk The senior leader makes the final decision on risk acceptance

The Process Step 4 – Implement Controls: Decide how each control will be put into effect or communicated. Implementing controls includes coordination and communication with superiors, subordinates, and individuals executing the mission/task. Plans SOPs Standards Rehearsals Ensure all know the risk and how to avoid or reduce

The Process Step 5 – Supervise and Evaluate: Ensure controls are working Determine effectiveness Safety performance during AAR Improve controls as required

Risk Management Integration The Next Generation 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

RISK ASSESSMENT MATRIX PROBABILITY FREQUENT LIKELY OCCASIONAL SELDOM UNLIKELY A B C D E I II III IV CATASTROPHIC CRITICAL MODERATE NEGLIGIBLE EXTREMELY EXTREMELY HIGH HIGH MEDIUM HIGH HIGH EXTREMELY HIGH HIGH MEDIUM LOW HIGH HIGH MEDIUM MEDIUM LOW LOW MEDIUM LOW LOW LOW LOW SEVERITY

PROBABILITY A – FREQUENT = OCCURS OFTEN B – LIKELY = OCCURS FREQUENTLY C – OCCASIONAL = OCCURS SOMETIMES D – SELDOM – REMOTE OCCURRENCE E - UNLIKELY

SEVERITY CATASTROPHIC – DEATH OR PERMANENT DISABILITY CRITICAL – TEMPORARY OR PARTIAL DISABILITY MODERATE – MINOR INJURY, LOST WORKDAYS NEGLIGIBLE – FIRST AID TREATMENT

RISK LEVELS EXTREMELY HIGH – LOSS OF ABILITY TO ACCOMPLISH THE MISSION HIGH - SIGNIFICANTLY DEGRADES MISSION CAPABILITY MEDIUM – DEGRADES MISSION CAPABILITY LOW – LITTLE OR NO IMPACT TO MISSION CAPABILITY

APPROVING AUTHORITY EXTREMELY HIGH – CG HIGH – BDE COMMANDER MEDIUM – BN COMMANDER LOW – CO COMMANDER

RISK MANAGEMENT WORKSHEET Task: Swamp/River Crossing 2. DTG BEGIN: 070700 3. DATE: Operations END: 071200 12 Dec 02 4. Prepared By: SFC SMITH/PLATOON SERGEANT RANK/LAST NAME/DUTY POSITION 5. Hazards 6. Initial 7. Control 8. Residual 11. How to 12. How to 13.Controls Risk Risk Implement Supervise Effective Hypothermia (Exposure) EH Monitor water H SOP Direct Good and air temperatures Supv Non/weak swimmer EH Swimming classes H Rehearsals Direct Good Supv Fatigue H Enforce minimum M Rest Plan Direct Good rest periods during training 9. Overall Risk Level After controls are implemented (circle one) 10. Risk Decision Authority LOW MODERATE HIGH EXTREMELY HIGH COL I. M. King, BDE Commander Rank/Last Name/Duty Position

Reducing the Risk in Training SCENARIO Reducing the Risk in Training NOBODY’S FAULT VIDEO

Summary Questions? What Risk Management is Why Risk Management is important Definitions The Risk Management process Risk Management Integration Risk Management Matrix Video/Scenario Questions?

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 If there are no more questions, I would like to conclude with a quote from the Chief-of-Staff of the Army on the importance of Risk Management while still being able to take bold, decisive action. Thank you.