Operational Risk Management

Refresher Training

30 SW/SEG
 Why ORM?

• You've done it a thousand times.

• It comes naturally to you.

• Nothing could possibly go wrong, right ?

Think Again!
ORM is just Common Sense!!
 What is ORM?

• Definition
• Safety vs ORM
• The Basic Principles of ORM
• ORM Six Steps
• Three Levels of ORM
• Questions
 Operational Risk Management

A way to identify hazards and assess risks,

revealing what actions will maximize mission
effectiveness and minimize losses.
 Safety’s Place

MAX
COMBAT
CAPABILITY
CONSERVE
PERSONNEL &
RESOURCES
PREVENT OR
MITIGATE ADVANCE OR
LOSSES OPTMIZE GAIN

EVALUATE
AND MINIMIZE EVALUATE AND
RISKS MAXIMIZE GAIN

IDENTIFY, CONTROL, IDENTIFY, CONTROL,

AND DOCUMENT AND DOCUMENT
HAZARDS OPPORTUNITIES

Hazards, risks, and losses associated with the safety of

personnel and property are an essential part of any RA,
but ...
 Basic Principles of Risk Management

1. Accept no Unnecessary Risks

2. Make Risk Decisions at the Appropriate Level

3. Accept Risk When Benefits Outweigh the Costs

4. Integrate ORM into Operations and Planning at all

Levels
 Three Levels of ORM

• Time Critical
• Deliberate
• Strategic

• Each requires a different amount of time and detail

• Can Range from 1 minute to 1 week

• All are ORM and use the Six Steps

 Time Critical ORM

 Individuals taking time to think before acting

 DDD (dumb, different, dangerous)
 Start Step 1, “What could go wrong” – rest
follow
 On-and Off-Duty applications
 Risk Management culture
 Deliberate Process ORM

 Focus on a problem/improvement area

 Run through first three steps to provide
options for decision maker
 Primarily for on-duty purposes

 Checklist ORM
 Integrates ORM into everyday operations
 Requires ORM process to start
 Duty applications – also works for
leaves, TDYs, high risk activities
 Strategic ORM

 Focus on planning process

 Evaluate risks before operations start
 Save money and time

 Takes the longest amount of time –

produces greatest results
ORM Six Step Process
 Step 1 - Identify the Hazard

• What could go wrong?

• Make sure you understand the task and scope of

the operation

• Use the experts to identify hazards

Use Your Resources
 Step 2 - Assess the Risk

• How likely and how big a loss is possible?

• Attempt to measure “expected loss”

• Severity x Probability
Sample Risk Matrix
 Step 3 - Analyze Risk Control Measures

• What can we do?

• Produce as many viable options as possible

for leadership to consider

• Include all parties projected to be affected by,

or take part in any proposed changes

• Devise a game-plan to avoid, reduce/

eliminate, spread, transfer, or delay the risk
 Step 4 - Make Control Decisions

• What are the best options?

• Risk decisions should be made by the person

directly responsible for the operation

• Solution: Provide supervisors with the best

situational awareness possible
 Step 5 - Implement Control Measures

• How do we make it happen?

• Brief to affected parties and integrate into daily

operations

• Commit necessary resources to plan

• Time, Money, People
 Step 6 - Supervise and Review

• Evaluate implementation and effectiveness of

game-plan

• Determine if objectives are met

• Document entire effort to ensure validity and

preservation for future assessments
What’s my role in ORM
 Personal Risk Management

• You don’t have to do a formal assessment

• Run these steps in your mind

• Think before you Act

• Dumb, Different, Dangerous

• Use ORM--Protect Yourself--Have more Fun!

 Way Ahead

• Use Personal Risk Management

• IDENTIFY HAZARDS!

• Use risk management to improve effectiveness and

safety
 ORM Resources

• 30 SW ORM Training Guide

• 30 SWI 90-901, ORM
• AFI 90-901 ORM Program
• AFPAM 90-902 Guidelines and Tools
• USAF Risk Management Information System
(AFSC website: https://rmis.kirtland.af.mil/index.asp)
• 30 SW ORM website – link on the VAFB Intranet
Questions / Comments