Risk Management In Naval Operations

assay prudence In Naval OperationsThe concept of essay arrangement has been around the naval forces since its inception. During the drawdown of the 1990s, the attempt precaution concept was formalized into the Operational essay wipe outment (ORM) program. This approach was initiated to mitigate the attempts associated with such a massive reorganization.This paper examines the Naval Directive Office of the capitulum of Naval Operations Instruction 3500.39C OPNAVINST 3500.39C (02 July, 2010) that explains the ORM appendage as tailfin basic steps, quaternion principles and a put on the line management turn and measurement that is applied on three levels of operation in-depth, deliberate, and time critical. As state in OPNAVINST 3500.39C run a venture is expected in each(prenominal) military taxs, training, com flushings, operations, and personal activities. The most common exertion of labor degradation or flush trouble is human error, specific all(prenominal)y the inability to regularly manage essay. ORM gelds the take chancess by identifying hazards and measuring and controlling the expected risks, allowing decisions to be made that comp atomic quash 18 risks against the kick benefits. dark blue military force are responsible for managing risk in all tasks while leaders are responsible for ensuring puritanical procedures are in place and grab resources are available for personnel to perform assigned tasks. The Navy vision according OPNAVINST 3500.39C is to develop an milieu in which every officer, enlisted, or noncombatant person is happy and motivated to personally manage risk in everything they do, including on- and off- profession evolutions in peacetime and during conflict, therefrom enabling successful finis of any task and explosive charge.Keywords Operational Risk Management, OPNAVINST 3500.39CI. Statement and significance of the IssueThe ORM origins goes back to 1994 when The US Navy team made ORM an integral par t of planning, training, and operations. This stemmed from a need to improve operational quickness in peacetime-and to achieve success in combat-during a period of reduced resources and personnel.The Department of the Navy (DON) galosh Objectives for FY 2008 and Beyond(9 Oct 07) stated Integrate pencil eraser and Risk 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 misadventure is strikeed as the cost of doing businessEstablish a risk management training continuum to train all DON personnel receive targeted ORM training and that all formal professional training courses are inf utilizationd with examples of how effective risk management improves both safety and mission readiness..Risk is common nature in all military tasks, training, missions, operations, and personal activities. The most common bowel movement of task degradation or mission failure is human error, specifically the inability to regularly manage risk (OPNAVINST 3500.39C, 2010).Navys goal is to develop an environment in which every officer, enlisted, or civilian person is trained and motivated to personally manage risk in everything they do, including on- and off-duty evolutions in peacetime and during conflict, therefore enabling successful completion of any task and mission (OPNAVINST 3500.39C, 2010).The ORM process minimizes risks to acceptable levels, commensurate with task or mission accomplishment. regenerate application of the ORM process will reduce losses and associated costs resulting in more efficient recitation of resources. Zero risk is not the intent of ORM.Risk management is a continuous process that is integral from the strategic level of planning done the tactical level and execution. It is a tool to help improve mission readiness and mission accomplishment.The ORM benefits when applying the ORM process ensures mission or task success by providing more effective utilisa tion of resources, improving on- and off-duty risk decision making, reducing injury and property damage, and improving the readiness of all personnel (FAA System Safety Handbook, Chapter 15, 2000)ORM is 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. The ORM process is applicable across the spectrum of operations and tasks. It should be used by everyone all the time, whether on- or off-duty in their military or civilian life.II. Review of Relevant ResearchWhat is ORM?The term Operational Risk Management (ORM) is defined as a continual cyclic process which includes risk assessment, risk decision making, and implementation of risk controls, which results in adoption, mitigation, or avoidance of risk, (OPNAVINST 3500.39C, 2010). ORM is the oversight of operational risk, including the risk of loss resulting from inadequate or f ailed internal processes and systems human operators or external events.How does it work?The ORM process assists you in making smart and informed decisions. Actually, we apply ORM every day. At times, we may not even be aware of it as you carry out a task or mission. An example of this is as simple as crossing the street we look both shipway because we were taught this at a young age. However, today we dont even look at this as risk management, and something that we know is the right thing to do before crossing the street.Every person has a mapping to play in managing risk during a reigns task or mission, and every person is vital to the success of the Navy team, (ORM Fundamentals, Navy Knowledge Online, 2011).The Five StepsThe ORM process is a systematic, continuous, and repeatable process that consists of five basic steps (OPNAVINST 3500.39C, 2010).Identify hazardsAssess hazardsMake risk decisionsImplement controlsSupervise (and watch for changes)The starting signal two step s comprise the risk assessment portion of ORM and provide enhanced awareness and correspondence of a given situation. This awareness builds confidence and allows for timely, efficient, and effective protective measures. The remaining three steps are the essential follow-through actions to either eliminate the hazard or mitigate the risks.The Four Principles.ORM incorporates the following four principles (OPNAVINST 3500.39C, 2010)1. Accept Risk When Benefits Outweigh the Cost2. Accept No Unnecessary Risk3. Anticipate and Manage Risk by Planning4. Make Risk Decisions at the Right Level1. Accept Risk When Benefits Outweigh the CostThe process of weighing risks against the benefits and value of the mission or task helps to maximize success. equilibrise costs and benefits can be a subjective process. Therefore, personnel with knowledge and experience of the mission or task mustiness be engaged when making risk decisions (OPNAVINST 3500.39C, 2010). The goal of ORM is not to eliminate r isk but to manage the risk so that the mission or task both on- and off-duty can be successful. The bottom line is, if no benefit can be achieved then do not takings the risk.2. Accept No Unnecessary RiskIf all detectable hazards flummox not been identified, then superfluous risks are being accepted. Additionally, an unnecessary risk is any that, if taken, will not contribute meaning fully to mission or task accomplishment or will needlessly jeopardize personnel or material. The risk management process identifies hazards that might otherwise go unidentified and provides tools to reduce or offset risk. The acceptance of risk does not equate to the imprudent willingness to gamble. Take only risks that are necessary to accomplish the mission or task (OPNAVINST 3500.39C, 2010).3. 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 contro ls. This enhances the overall effectiveness of ORM and often reduces costs for your organization and yourself when off duty (OPNAVINST 3500.39C, 2010).4. 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 higher level. Ensuring that risk decisions are made at the appropriate level will establish clear accountability. Therefore, those accountable for the mission must be include 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 adjacent level in the chain of command (OPNAVINST 3500. 39C, 2010).Risk discernment MatrixORM Matrix CardOPNAVINST 3500.39C, (2010). Risk Assessment Matrix. Retrieved from http//safetycenter.navy.mil/ 1 March, 2011.This Matrix uses Risk as an expression of possible loss, adverse outcome, or prejudicial consequences such as injury or illness in terms of probability and severity of failure (Salas Maurino, 2010, p. 57).Risk Assessment is a structured process to identify and assess hazards. An expression of potential harm, depict in terms of severity, probability, and exposure to hazards. Accomplished in the first two steps of the ORM process.Risk Assessment Code (RAC) is 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 thoroughgoing(a) through the use of the risk assessment matrix. The basic RACs are 1-Critical, 2-Serious, 3-Moderate, 4-Minor, and 5-Negligible.Another definition no t include in this matrix is, Residual Risk and that will be the Risk remaining after controls befuddle been identified and selected. Bringing back the concept that Zero Risk is not the primary purpose of ORM.Also, for the use of this matrix an Operational Analysis of the task at hand has to be made. This means a chronological or sequential list of the major events or elements in a mission or task. This is the muster out picture of what is expected to happen and assures all elements of a mission or task are evaluated for all potential hazards.Very important to define what a Hazard is before assigning it a number in this matrix, because a hazard is 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 impact to mission accomplishment or damage to the environment, this is besides synonymous with the term threat.Last for this chart is the Risk Decision or the ability to mak e a decision to accept or not accept the risk(s) associated with an action made by the commander, leader, or individual responsible for perform that action.The Three LevelsThe risk management process is applied on three levels in-depth, deliberate, and time critical. The basic factor that differentiates each level is time that is the amount of time available to dedicate to the preparation and planning of missions or tasks (OPNAVINST 3500.39C, 2010).There is no definitive separating line between the three levels (in-depth, deliberate, and time critical. It is important 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 substantial and implemented. These controls become resources upon which we can draw for the next level of planning and ultimately for execution.III. Summary of Major Findings and ConclusionsOn and Off-duty mishaps are extremely detrimental to the Navys operational capa bility.Because the Navy works as a team 24/7, the actions one person takes can affect the readiness and operational capability of the commands mission or task, therefore affecting the Navy as a whole. Thus, we must constantly be aware of all risks snarled in our everyday off-duty activities.Benefits of using ORMReduction of operational loss.Lower compliance/auditing costs.Early detection of culpable activities.Reduced exposure to future risks.The ORM process minimizes risks to acceptable levels, commensurate with task or mission accomplishment. Correct application of the ORM process will reduce losses and associated costs resulting in more efficient use of resources.IV. RecommendationsAll Navy military, civilian, and contractors under the direct supervision of government personnel should apply the ORM principles and processes in all activities in order to optimize mission success and maintain readiness. Leadership should be held accountable for the use of ORM processes in their co mmand.An organizations success requires the commitment of leaders to manage risk while meeting the commands mission. Leaders must lead by example and provide thorough policies and goals, with buy-in from all personnel.All personnel must fully trust that they have the support for risk decisions made in the interest of completing the mission, while also recognizing that intentional breaches of regulations will not be tolerated.The responsibilities as a Leader and /or Commanding Officer, or officer-in-charge should includeEstablish command policy and expectations for the application of ORM on- and off-duty.Address the ORM process in mission, training, safety, and lessons learned reports. tell the chain of command of those hazards identified by the ORM process that cannot be controlled or mitigated at the command level.Ensure ORM risk decisions are being made at the appropriate level within the command.