Concept Of Risk Management In Navy Management Essay

Concept Of fortune dealment In navy vigilance EssayThe concept of contract chances bring home the baconment has been roughly the Navy since its inception. During the drawdown of the 1990s, the take a chance centering concept was formalized into the actional venture Management (ORM) program. This merged overture was initiated to moderate the take chancess associated with such(prenominal) a commodious re reach out-up. run a risk is inherent in entirely labors, schooling, directions, operations, and in personal activities no matter how routine. The most common ca subprogram of task degradation or mission break upure is valet error, specific every last(predicate)y the inability to consistently exert risk. ORM reduces or appendages risks bysystematically identifying threatens and assessing and controlling the associated risks allowing ends to be made that measure risks against mission or task benefits. As professionals, Navy force argon obligated for managing risk in all tasks while leaders at all takes atomic number 18 responsible for ensuring proper procedures ar in property and that allow resources ar available for their personnel to perform defineed tasks. The Navy vision is to condition an environment in which all(prenominal) officer, enlisted, or noncombatant person is practised and motivated to personally maintain risk in everything they do This includes on- and off-duty evolutions in peacetime and during conflict, thereby enabling successful completion of each task and mission.Integrate Safety and bump Management into all on and off-duty evolutions to maximize mission readiness and to establish DON as an organization with world class safety where no mishap is accepted as the cost of doing businessEstablish a risk management training continuum to ensure all DON personnel receive targeted ORM training and that all formal professional training courses be infused with examples of how effective risk management improv es both(prenominal) safety and mission readiness.DON Objectives for FY 2008 and Beyond (9 Oct 07)Benefits of ORMReduction of practicable difference.Lower compliance/auditing costs.Early contracting of unlawful activities.Reduced flick to future risks.Table of ContentsI. Statement of the Issue or riddle (1 page)II. Signifi terminatece of the Issue / Problem Why the issue / problem is signifi puket to aviation merciful factors (1 page)III. Review of Relevant Research (include references to at least volt aviation human factors journal articles and / or aviation human factors texts, such as those found in ebrary at the ERAU Hunt subroutine library (5 pages)IV. Summary of Major Findings and Conclusions (1 page)V. Recommendations for future research to address the issue / problem (1 page)*********************What is ORM?The term Operational adventure Management (ORM) is defined as a continual cyclic work out which includes risk assessment, risk decision making, and executin g of risk controls, which results in acceptance, mitigation, or avoidance of risk. ORM is the oversight of in operation(p) risk, including the risk of loss resulting from inadequate or failed internal subroutinees and systems human factors or impertinent events.+++++++++++++++++++++HowThe ORM process assists you in making smart and informed decisions. Actually, you apply ORM every day. At times, you may not even be aw are of it as you carry out a task or mission. An example of this is as simple as crossing the street you look both shipway be score you were taught this at a young age. However, today you dont even look at this as risk management, but something that you k forthwith is the right thing to do before crossing the street.Every boater has a role to move in managing risk during a commands task or mission, and every Sailor is vital to the success of the Navy team.PurposeThe ORM process minifys risks to delicious levels, fitted with task or mission accomplishment. Corre ct operation of the ORM process forgeting reduce losses and associated costs resulting in more efficient use of resources. Zero risk is not the intent of ORM.GoalThe Goal of ORM is to expatiate an environment in which every officer, enlisted, or civilian person is trained and motivated to personally manage risk in everything they do to manage risk and move forward to accomplish the mission while safeguarding our deal and infrastructure.Risk management is a continuous process that is integral from the strategical level of readying through the tactical level and performance. It is a scratch to help improve mission readiness and mission accomplishment.The figure shows the deuce-ace levels of ORM defined primarily by time. There is no definitive separating short letter between the leash levels (in-depth, deliberate, and time critical) represented by the transition in color flowing from one level to another as you approach the task or event.It is primary(prenominal) to know we have resources to tap into. At each level of the planning process, hazards and associated risks are identified and appropriate controls are developed and implemented. These controls become resources upon which you laughingstock draw for the next level of planning and ultimately for execution.The ORM process is a systematic, continuous, and repeatable process that consists of five staple fibre step.Identify hazardsAssess hazards get at risk decisionsImplement controlsSupervise (and lookout man for changes)The first two steps comprise the risk assessment delegate of ORM and provide enhanced sensation and understanding of a given situation. This consciousness builds confidence and allows for timely, efficient, and effective protective measures. The remaining three steps are the essential follow-through actions to either disapprove the hazard or mitigate the risks.Risk Assessment MatrixORM Matrix CardORM incorporates the following cardinal principlesAccept Risk When Benefit s exceed the CostAccept No inessential RiskAnticipate and Manage Risk by PlanningMake Risk Decisions at the Right LevelAccept Risk When Benefits Outweigh the CostThe process of weighing risks against the benefits and value of the mission or task helps to maximize success. Balancing costs and benefits locoweed be a ingrained process. Therefore, personnel with knowledge and experience of the mission or task must be engaged when making risk decisions.The goal of ORM is not to eliminate risk but to manage the risk so that the mission or task both on- and off-duty stinker be successful. The bottom line is, if no benefit can be achieved then do not take the risk.Accept No Unnecessary RiskOperational Naval mastery (OPNAVINST) 3500.39 (series) statesIf all detectable hazards have not been identified, then unnecessary risks are being accepted. Additionally, an unnecessary risk is any that, if taken, will not give meaningfully to mission or task accomplishment or will needlessly jeopa rdize personnel or material. The risk management process identifies hazards that might otherwise go unidentified and provides dents to reduce or offset risk. The acceptance of risk does not equate to the imprudent willingness to gamble. Take barely risks that are necessary to accomplish the mission or task.Anticipate and Manage Risk by PlanningIntegrating risk management into planning as early as possible provides the greatest opportunity to make well-informed risk decisions and implement effective risk controls. This enhances the overall long suit of ORM and often reduces costs for your organization and yourself when off duty.Make Risk Decisions at the Right LevelAnyone can make a risk decision. However, the appropriate decision maker is the individual who can eliminate or minimize the hazard, implement controls to reduce the risk, or accept the risk. Leaders at all levels must ensure that their personnel know how much risk they can accept and when to elevate the decision to a h igher level. Ensuring that risk decisions are made at the appropriate level will establish decipherable accountability. Therefore, those accountable for the mission must be included in the risk management process. If the commander, leader, or individual responsible for executing the mission or task determines that the controls available to them will not reduce risk to an acceptable level, they must elevate the risk decisions to the next level in the drawstring of command.3 LEVELS ==========================================The risk management process is applied on three levels in-depth, deliberate, and time critical. The staple fiber factor that differentiates each level is time that is the sum of time available to dedicate to the preparation and planning of missions or tasks. cadence Critical Risk Management (TCRM)Personnel know ORM. They develop plans and truncated the crew on task procedures. However, we often fail to execute the plans as briefed. We do not manage change as it occurs, and those changes affect the trustworthy plans. Usually, the personnel injured during a task are those who were not entangled in the original planning.Recent studies of the ORM process have found that personnel have a firm grasp of the In-Depth and Deliberate levels of ORM. Unfortunately, personnel fail to execute Time Critical Risk Management (TCRM) during tasks as events change.You are accustomed to the 5-step process during In-Depth and Deliberate ORM processes however, realistically it is difficult to execute the 5-step process during the time critical level effectively. Therefore, we are introducing a new tool for the execution of TCRM. This tool will help you improve communication, custody change, and manage risk to ensure mission success. We are NOT eliminating the 5-step process rather, the five steps are incorporated into this new, easy-to-use tool.This model consists of various graphic representations for situational awareness (target), stacked blocks (resourc es), a swooping arrow (a return to good SA) and a quadruplet letter box mnemotechnic (ABCD) that will help you improve communication, handle change, and manage risk to ensure mission or task success. Its called the ABCD model.The ABCD mnemonic in the model is not a re belongingsment for the 5-step ORM process or a different process of risk management, but it is the practical application of the 5-step process in a time-critical environment.Off-duty mishaps are extremely detrimental to the Navys operational capability.Because we are part of the Navy team 24/7, the actions we take off-duty can affect the readiness and operational capability of our commands mission or task, so affecting the Navy as a whole. Thus, we must constantly be aware of all risks involved in our everyday off-duty activities.ORM applies off-duty the same as on-duty. By consistently using the A-B-C-D loop in our individual activities, we can reduce the number of off-duty mishaps thereby improving the Navys readin ess and operational capabilities. These few mishaps will also allow individuals to meet personal and professional challenges now and in the future.Benefits of ORMReduction of operational loss.Lower compliance/auditing costs.Early detection of unlawful activities.Reduced exposure to future risks.*****************Glossary of TermsABCD The mneomic for the quadruplet actions of Time Critical Risk Management (TCRM). A-Assess the situation, B-Balance your resources, C-Communicate to others, D-Do and Debrief the event.Acceptable Risk The portion of identified risk that is allowed to persist during the mission or task. one-dimensional Condition Refers to all items that compete for an individual or crews attention during the execution of a mission or task. Examples include equipment malfunctions, change in weather, binary players, unpredictable information, and change to the mission. Additive conditions may increase task fill or uncertainty and lead to distraction or channelized focus.Co mmand (unit or organizational) ORM Integration Integrating ORM into the command relates to reviewing procedures, instructions, and processes identifying hazards and creating controls associated with those hazardsCommand ORM Manager Designated unit level individual, qualified in consistency with OPNAVINST 1500.75(series), who is responsible for implementing risk management principles, concepts, and form _or_ system of government within the unit.Consequential Error An error which leads to undesired consequences to property, personnel, or mission (e.g., mishap, personal injury, mission failure, etc.).Controls Actions taken or measures put in place to eliminate a hazard or reduce the associated identified risk. roughly type of controls include engineering controls, administrative controls, and physical controls.Crew Factors Refers to human factors which affect the capabilities of the individual, crew, or team and can increase the potential for errors. This includes such things as att itudes, personalities, level of training, experience, fatigue, and physiological factors.CRM Crew Resource Management word-painting An expression that considers the frequency, length of time, and percentage of people or assests subjected to a hazard. painting is a component of risk, but not directly used to assign a level of risk. Rather, it is a consideration in determining prospect and severity.Hazard Any real or potential condition that can cause injury, illness, or death to personnel damage to or loss of equipment or property degradation of mission capability or invasion to mission accomplishment or damage to the environment. (Synonymous with the term threat.)Operational compend A chronological or sequential list of the major events or elements in a mission or task. This is the complete picture of what is expect to happen and assures all elements of a mission or task are evaluated for all potential hazardsOPNAV Office of the Chief of Naval OperationsOPORD Operation OrderOPS OperationsORM Operational Risk ManagementOperational Risk Management A process that assists organizations and individuals in making informed risk decisions in order to reduce or offset risk thereby increasing operational effectiveness and the probability of mission success. It is a systematic, circular process of identifying hazards and assessing and controlling the associated risks. The process is applicable across the spectrum of operations and tasks, both on and off duty.ORM Assistant Designated unit level individual who is a subject matter expert (SME) on ORM principles and concepts, qualified in accordance with OPNAVINST 1500.75(series), and supports the command ORM manager in implementing risk management within the unit.PHA forward Hazard AnalysisPPE Personal Protective EquipmentPO Petty officeholderPQS Personal Qualification StandardPreliminary Hazard Analysis A means to create an initial list of hazards that may exist in an operation, task, or mission. This builds on the operational analysis and entails listing hazards and associated causes.Probability A measure of the likelihood that a potential consequence will occur.RAC Risk Assessment CodeResidual Risk Risk remaining later on controls have been identified and selected.Resource Something that can be used to develop controls and includes time, money, people or equipment. With respect to Time Critical Risk Management (TCRM), a resource is something used to prevent errors, speed up decision making, or improve team coordination. Resources are typically developed as controls at the in-depth or deliberate levels of risk management. They are broadly grouped into the following categories Policies, procedures and routines checklists automation briefings and external resources and knowledge, skills and techniques.Risk An expression of possible loss, untoward outcome, or negative consequences such as injury or illness in terms of probability and severity.Risk Assessment A structured process to identify and assess hazards. An expression of potential harm, described in terms of severity, probability, and exposure to hazards. Accomplished in the first two steps of the ORM process.Risk Assessment Code An expression of the risk associated with a hazard that combines its severity and probability into a single Arabic numeral which can be used to help determine hazard abatement priorities. This is typically accomplished through the use of a risk assessment matrix. The basic RACs are 1-Critical, 2-Serious, 3-Moderate, 4-Minor, and 5-Negligible.Risk Decision The decision to accept or not accept the risk(s) associated with an action made by the commander, leader, or individual responsible for performing that action.Root cause Any basic underlying cause that was not in turn a result of more important underlying causes. Describes the depth in the causal chain where an intervention could slightly be implemented to change performance and prevent an undesirable outcome. The analysis of a hazard may identify multiple causes however applying controls to the get back cause is ultimately more effective that merely addressing an intermediate cause. harshness An assessment of the potential consequence intensity that can occur as a result of exposure to a hazard and is defined by the stage of injury, illness, property damage, loss of asset (time, money, personnel) or mission or task impairing factors. When analyzing risk, it is based on the worst credible outcome.Situational Awareness (SA) Refers to the degree of accuracy by which ones perception of the current environment mirrors reality project Loading The number of tasks to complete, given a set period of time. high task loading increases the potential for error. Task loading can be reduced by either reducing the number of tasks or winning more time.TCRM Time Critical Risk ManagementTFOM Training conception of MeritThreat See hazard. With respect to ORM, threat and hazard are considered synomynous.TORIS Training and Oper ational Readiness Information ServicesTRACS Total Risk Assessment and Control SystemUnacceptable Risk The risk when mensural versus the benefit or value of the mission or task that cannot be tolerated and must be eliminated or controled.What If Tool A means of idea about what may go wrong and stating it as a psyche beginning with the phraseWhat if? This method is most useful for personnel who are in truth involved in the operation being analyzed and adds insight to some of the more significant hazards identified with the preliminary hazard analysis (PHA). notice What IF tool