Risk Management
Principles of Risk Management #1
Accept no unnecessary risk
Principles of Risk Management #2
Accept risk when benefits outweigh cost
Define: Hazard
An actual or potential condition where the following can occur due to exposure to the hazard: Injury, illness, or death of personnel Damage to or loss of equipment and property Mission degradation
Principles of Risk Management #4
Anticipate and manage risk by planning
Second step of risk management
Assess hazards to determine risk
Define: Risk
Characterized by both the probability and severity of a potential loss that may result from hazards due to the presence of an enemy, adversary, or some other hazardous condition.
Purpose for risk management for the commander or leader-
Conserve lives and resources Make an informed decision Identify feasible and effective control measures Provide reasonable alternatives for mission accomplishment
RM Level: Time Critical
Consider risk while making decisions in a time-compressed situation Useful when an unplanned event occurs during the execution of a planned op or daily routine
Risk Assessment Code (RAC): 1
Critical
Hazard severity: Category III
Degraded mission capability or unit readiness Minor equip damage Minor injury or illness
Third step of risk management
Develop controls and make risk decisions
RM Level: Deliberate
Experience and brainstorming Most effective when done in a group Ex: Planning upcoming ops, reviewing SOP, training procedures, damage control
First step of risk management
Identify hazards
Fourth step of risk management
Implement controls
Define: Accident risk
Includes all operational risk considerations other than tactical risk. Includes risk to the friendly force, risk posed to civilians during an op, and an op's impact on the environment.
Degree of Probability: A
LIKELY to occur immediately or within a short period of time. Frequent or continuous.
Hazard severity: Category IV
Little or no adverse impact on mission capability or unit readiness Minimal threat to personnel safety or health
Hazard severity: Category I
Loss of ability to accomplish the mission Death or permanent total disability Major facility famage Unacceptable collateral damage
Degree of Probability: C
MAY occur in time. Expected to occur sometime.
Principles of Risk Management #3
Make risk decisions at the right level
Risk Assessment Code (RAC): 4
Minor
Risk Assessment Code (RAC): 3
Moderate
Define: Overall Residual Risk
Must be determined when more than one hazard is involved Should be determined based on the incident having the greatest residual risk Do not average the risks of all hazards
Risk Assessment Code (RAC): 5
Negligible
Degree of Probability: B
PROBABLY will occur in time. Several times.
Define: Tactical risk
Risk concerned with hazards that exist because of the presence of either the enemy or an adversary. Applies to all levels of war and across the spectrum of operations.
Risk Assessment Code (RAC): 2
Serious
Hazard severity: Category II
Significantly degraded mission capability or unit readiness Permanent partial disability
Fifth step of risk management
Supervise and evaluate
What are the two types of risk?
Tactical Risk Accident Risk
Define: Risk Assessment Code (RAC)
The point where the severity row and probability column intersect defines the level of risk
Define: Degree of Probability
The probability of a hazardous incident
Define: Risk management
The process of identifying, assessing, and controlling risks arising from operational factors and making decisions that balance risk costs with mission benefits
Define: Residual Risk
The risk remaining after controls have been selected for the hazard - true only if the controls for it are implemented
Risk Management Levels
Time critical Deliberate In-Depth
Degree of Probability: D
UNLIKELY to occur, but not impossible.
RM Level: In-Depth
Very thorough risk assessment Use of data, diagram, analysis tool, formal testing, longterm tracking of hazards
