DISCUSS THE CONCEPT OF OPERATIONAL RISK MANAGEMENT (ORM)
ORM IS A DECISION MAKING PROCESS THAT ENHANCES OPERATIONAL CAPABILITY. NAVAL WARFARE PUBLICATION 1 STATES, "RISK MANAGEMENT AND RISK ASSESSMENT ARE FORMAL, ESSENTIAL TOOLS OF OPERATIONAL PLANNING. SOUND DECISION MAKING REQUIRES THE USE OF THESE TOOLS BOTH IN BATTLE AND IN TRAINING. "ORM, DESCRIBED IN ENCLOSURE (1), IS A METHOD FOR INDENTIFYING HAZARDS, ASSESSING RISKS AND IMPLEMENTING CONTROLS TO REDUCE THE RISK ASSOCIATED WITH ANY OPERATION.
EXPLAIN THE FOLLOWING AS THEY APPLY TO ORM
A. IDENTIFYING HAZARDS
BEGIN WITH AN OUTLINE OR CHART OF THE MAJOR STEPS IN THE OPERATION (OPERATIONAL ANALYSIS). NEXT, CONDUCT A PRELIMINARY HAZARD ANALYSIS BY LISTING ALL OF THE HAZARDS ASSOCIATED WITH EACH STEP IN THE OPERATIONAL ANALYSIS ALONG WITH POSSIBLE CAUSES FOR THOSE HAZARDS.
B. ASSESSING HAZARDS
FOR EACH HAZARD IDENTIFIED, DETERMINE THE ASSOCIATED DEGREE OF RISK IN TERMS OF PROBABILITY AND SEVERITY. ALTHOUGH NOT REQUIRED, THE USE OF A MATRIX MAY BE HELPFUL IN ASSESSING HAZARDS DESCRIBED FURTHER IN PARAGRAPH D.
C. MAKING RISK DECISIONS
FIRST, DEVELOP RISK CONTROL OPTIONS. START WITH THE MOST SERIOUS RISK FIRST AND SELECT CONTROLS THAT WILL REDUCE THE RISK TO A MINIMUM CONSISTENT WITH MISSION ACCOMPLISHMENT. WITH SELECTED CONTROLS IN PLACE, DECIDE IF THE BENEFIT OF THE OPERATION OUTWEIGHS THE RISK. IF RISK OUTWEIGHS BENEFIT OR IF ASSISTANCE IS REQUIRED TO IMPLEMENT CONTROLS, COMMUNICATE WITH HIGHER AUTHORITY IN THE CHAIN OF COMMAND.
D. IMPLEMENTING CONTROLS
THE FOLLOWING MEASURES CAN BE USED TO ELIMINATE HAZARDS OR REDUCE THE DEGREE OF RISK. THESE ARE LISTED BY ORDER OF PREFERENCE:
1. ADMINISTRATIVE CONTROLS - CONTROLS THAT REDUCE THE RISKS THROUGH SPECIFIC ADMINISTRATIVE ACTIONS, SUCH AS:
A. PROVIDING SUITABLE WARNINGS, MARKINGS, PLACARDS, SIGNS, AND NOTICES
B. ESTABLISHING WRITTEN POLICIES, PROGRAMS INSTRUCTIONS AND STANDARD OPERATING PROCEDURES (SOP)
C. TRAINING PERSONNEL TO RECOGNIZE HAZARDS AND TAKE APPROPRIATE PRECAUTIONARY MEASURES
D. LIMITING THE EXPOSURE TO A HAZARD (EITHER BY REDUCING THE NUMBER OF PERSONNEL/ASSETS OR THE LENGTH OF TIME THEY ARE EXPOSED)
2. ENGINEERING CONTROLS - CONTROLS THAT USE ENGINEERING METHODS TO REDUCE RISKS BY DESIGN, MATERIAL SELECTION OR SUBSTITUTION WHEN TECHNICALLY OR ECONOMICALLY FEASIBLE.
3. PERSONAL PROTECTIVE EQUIPMENT - SERVES AS A BARRIER BETWEEN PERSONNEL AND A HAZARD. IT SHOULD BE USED WHEN OTHER CONTROLS DO NOT REDUCE THE HAZARD TO AN ACCEPTABLE LEVEL.
E. SUPERVISING
CONDUCT FOLLOW-UP EVALUATIONS OF THE CONTROLS TO ENSURE THEY REMAIN IN PLACE AND HAVE THE DESIRED EFFECT. MONITOR FOR CHANGES, WHICH MAY REQUIRE FURTHER ORM. TAKE CORRECTIVE ACTION WHEN NECESSARY.