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Operational Risk Management

STEP #1 – IDENTIFY HAZARDS

DRIVER SCENARIO

  • What could go wrong during the trip?

WHY ORM WHEN DRIVING?

  • Average of 114 persons die each day in motor vehicle crashes – one every 13 minutes.

STEP #3 – MAKE RISK DECISIONS

Your unit has been working extremely hard.

CO is granting a 3-day weekend.

You plan a trip.

  • Outline the steps in your trip.
  • List hazards.
  • What could go wrong during the trip?
  • What causes things to go wrong?

-FATIGUE

-VEHICLE BREAKDOWN

-DRUNK DRIVERS

-SPEEDING

-DIRECTIONALLY CHALLENGED

-ROAD CONSTRUCTION

-WEATHER & OTHER CONDITIONS

FOUR MAJOR AREAS:

1. DEVELOP CONTROLS.

ORM AND SAFE DRIVING

  • Vehicle occupants accounted for 85.3% of traffic fatalities in 1998; remaining 14.7% were pedestrians, pedal cyclists, and other non-occupants.

2. REASSESS HAZARDS FOR RESIDUAL RISK.

3. DOES THE TASK BENEFIT OUTWEIGH THE RISK INVOLVED?

STEP #4 – IMPLEMENT CONTROLS

  • How can I prevent or diminish the associated risks?

4. SHOULD YOU CANCEL, POSTPONE, OR REVISE?

Perception: Driving is not a high risk activity.

Reality: Driving is a high risk activity.

  • The Naval Safety Center asserts that driver safety is our #1 readiness issue.

ORM is a proven and successful tool for operational use, but it has equal application to many types of activities where there is risk associated. A good example is driver safety.

  • MORAL COURAGE

STEP #5 - SUPERVISE

  • Sailors and Marines were among those casualties!

ORM Principles

  • JUDGMENT
  • COMMUNICATION SKILLS

Photo

  • Accept risk when benefits outweigh the cost.
  • Accept no unnecessary risk.
  • Anticipate and manage risk by planning.
  • Make risk decisions at the right level.
  • Enforce standards and controls.

  • Remain alert for changes.

  • Take corrective action when and where necessary.

ORM

QUESTIONS

ORM FIVE-STEP PROCESS

STEP #5: Supervise

  • Enforce your standards and controls.
  • Remain alert for changes and unexpected developments.
  • Take corrective action if needed.
  • Are your controls effective?

ORM FIVE-STEP PROCESS

STEP #4: Implement Controls

EXAMPLES

  • Incorporate your controls.
  • Communicate selected controls to the lowest level.

Questions?

ORM FIVE-STEP PROCESS

  • Make your plans, and let them be known.

STEP #3: Make Risk Decisions

SUMMARY

ORM FIVE-STEP PROCESS

STEP #2: Assess Hazards Determine degree of risk for each hazard.

Review Categories

Risk Assessment Codes

1 = Critical

2 = Serious

CAT I = Death, loss of asset

CAT II = Severe, injury

CAT III = Minor, injury

CAT IV = Minimal, injury

3 = Moderate

4 = Minor

5 = Negligible

ORM FIVE-STEP PROCESS :

STEP #1: Identify Hazards

  • List major steps in your operation/task.

-Legs of your driving trip, etc.

  • Conduct a preliminary hazard analysis.

-List hazards associated with each step/leg of your trip.

-List the possible causes of the hazards.

ORM TERMS continued...

Risk :

An expression of possible loss in terms of severity and probability.

Risk Assessment :

The process of detecting hazards and assessing associated risks.

Residual Risk :

The risk that remains after this 5 step process.

ORM TERMS

Hazard

- A condition with the potential to cause illness, injury, death, property damage, or mission degradation.

Cause

– Something that produces an effect, result, or consequence (i.e., the person, event or condition responsible for an action or result).

Why ORM?

In the year 1999....

Estimated 6,289,000 police reported traffic crashes.

Sailors and Marines were among those casualties!

3,200,000 people injured.

41,345 people killed.

Risk of crash involvement among drivers 16-19 years old is 4 times the risk among older drivers.

Operational Risk Management (ORM)

and the Driving Task

By: MIDN DEKEN

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