1. Operational Risk Management

2. Overview Operational Risk Management (ORM) Definition Purpose and Goal
Principles 2

3. Overview (Continued) ORM Process ORM Responsibilities
Step 1: Identify the Hazards
Step 2: Access the Risk
Step 3: Analyze Risk Control Measures
Step 4: Make Control Decisions
Step 5: Implement Risk Controls
Step 6: Supervise and Review
ORM Responsibilities 3

4. Definition
ORM is a logic-based, common sense approach to making calculated decisions on human, materiel, and environmental factors before, during, and after Air Force mission activities and operations, i.e., on- and off-the-job 4

5. Purpose and Goal
Purpose: To enable commander’s, functional managers, supervisors, and individuals to maximize operational capabilities while minimizing risks
Goal: To enhance mission effectiveness at all levels, while preserving assets and safeguarding health and welfare 5

6. Principles
1. Accept no unnecessary risk 2. Make risk decisions at the appropriate level 3. Accept risk when benefits outweigh the costs 4. Integrate ORM into Air Force Doctrine and Planning at all levels 7

7. ORM 1. Identify the Hazards 6. Supervise and Review 5. Risk Control
Implement
2. Assess
the Risks
The ORM process. Each of the six steps of the process offer significance benefits over the traditional safety approaches.
RM is a continuous, sequential methodology with a discrete number of steps that define the process.
The number of steps may be tailored to meet mission requirements, take advantage of personnel expertise, and accommodate time constraints.
AFI lists the 6-step ORM process. AETC has adopted the 6-step process. The Army, AFSOC, and 58 SOW are using a 5-step process. (They combine steps 3 & 4).
4. Make
Control
Decisions
3. Analyze
Risk Control
Measures 30 1 30

8. Step 1: Identify the Hazards
Any real or potential condition that can cause injury, illness, death to personnel or damage to or loss of equipment or property
Purpose: Identify as many as possible
Ideas on how to identify hazards 9

9. Step 2: Assess the Risks
Probability and severity of an undesirable event that could result from the hazard
Three Components of Risk
Methods and Tools 10

10. Step 3: Analyze Risk Control Measures
Investigate specific strategies and tools that reduce, mitigate, or eliminate the risk
Effective control measures reduce or eliminate one of the three components (probability, severity, or exposure) of risk 11

11. Step 4: Make Control Decisions
The earlier in the process risk controls are implemented, the cheaper the cost
Control decisions must be made at the appropriate level
Safety advisors and consultants do not control the necessary resources to implement the control decisions 13

12. Step 5: Implement Risk Controls
Assets must be made available to implement to specific controls
Inform the personnel in the system of the risk management process results and subsequent decisions
To be effective, control measures must be implemented in an appropriate and understandable way 14

13. Step 6: Supervise and Review
ORM process continues throughout the life cycle of the system, mission, or activity
Once controls are in place, the process must be periodically re-evaluated to ensure their effectiveness 17

14. Step 6: Supervise and Review (Continued)
Supervise: Monitor the operation to ensure the controls are effective and remain in place
Review: Changes in the system should be recognized, and appropriate risk management controls must be applied 18

15. Responsibilities Starts with the commander Supported by the staff
Implemented by the supervisors
Rests with all individuals

16. Operational Example RAF Lakenheath Runway needed extensive repairs
Temporary operations were moving to RAF Honnington
How did the personnel safely accomplish this move with the use of ORM? 19

17. Questions? 20

18. Summary Operational Risk Management (ORM) Definition Purpose and Goal
Principles 2

19. Summary (Continued) ORM Process ORM Responsibilities
Step 1: Identify the Hazards
Step 2: Access the Risk
Step 3: Analyze Risk Control Measures
Step 4: Make Control Decisions
Step 5: Implement Risk Controls
Step 6: Supervise and Review
ORM Responsibilities 3

20. ORM 1. Identify the Hazards 6. Supervise and Review 5. Risk Control
Implement
2. Assess
the Risks
The ORM process. Each of the six steps of the process offer significance benefits over the traditional safety approaches.
RM is a continuous, sequential methodology with a discrete number of steps that define the process.
The number of steps may be tailored to meet mission requirements, take advantage of personnel expertise, and accommodate time constraints.
AFI lists the 6-step ORM process. AETC has adopted the 6-step process. The Army, AFSOC, and 58 SOW are using a 5-step process. (They combine steps 3 & 4).
4. Make
Control
Decisions
3. Analyze
Risk Control
Measures 30 1 30

21. ORM provides a logical and systematic means of identifying and controlling risk. It does, however, require individual and organizational dedication to it’s basic precepts, along with the discipline to apply them on a continuing basis.