2. Risk
Benefit
Risk Management

3. Introduce the concept of risk management
Purpose
Introduce the concept of risk management
References:
FM 101-5, Appendix J

4. 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>

5. 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>

6. 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

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

8. 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

9. 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.

10. 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>

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

12. 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

13. 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

14. 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

15. 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

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

17. 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

18. 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

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

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

21. 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

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

23. RISK MANAGEMENT WORKSHEET
Task: Swamp/River Crossing DTG BEGIN: DATE:
Operations END: Dec 02
4. Prepared By: SFC SMITH/PLATOON SERGEANT
RANK/LAST NAME/DUTY POSITION
5. Hazards Initial Control Residual How to How to 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) Risk Decision Authority
LOW MODERATE HIGH EXTREMELY HIGH
COL I. M. King, BDE Commander
Rank/Last Name/Duty Position

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

25. 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?

26. 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.