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Operational Risk Management (ORM) Review Solution Guide, Exams of Advanced Education

Liberty University (LU)Advanced Education

The operational risk management (orm) review solution guide outlines the purpose, process, and implementation of orm within the u.s. Navy. Orm is a decision-making tool used to identify hazards, assess risks, and implement controls to reduce the risk associated with any operation. The guide covers the roles and responsibilities of various navy commands and personnel in integrating orm into training, standards, and procedures. It also defines key terms such as hazard, hazard severity, mishap probability, risk, and risk assessment. The orm process is detailed in five steps: identify hazards, assess hazards, make risk decisions, implement controls, and supervise. The guide provides a risk assessment matrix to quantify and prioritize risks based on hazard severity and mishap probability. Overall, the document aims to optimize operational capability and readiness by teaching personnel to make sound decisions and manage risks effectively.

Typology: Exams

2024/2025

Available from 10/18/2024

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OPERATIONAL RISK MANAGEMENT (ORM)
REVIEW SOLUTION GUIDE
Purpose. - Previously established and reissue policy for Operational Risk Management (ORM) as
an integral part of the decision-making process for all navy military and civilian personnel, on or
off duty. It involves training and planning at all levels in order to optimize operational capability
and readiness by teaching personnel to make sound decisions regardless of the activity in which
they are involved.
ORM - is a method to identify hazards, assess risks and implement controls to reduce the risk
associated with any operation.
CNO (N09F) - shall provide policy for ORM in the Navy and ensure specific applications of the
ORM process are integrated into Navy Occupational Standards.
Fleet Commanders, Echelon II Commanders and Type Commanders - provide uniform force
wide guidance for identifying areas where existing instructions, standard operating procedures
and command-specific applicatons and requirements be augmented with ORM as per this
instruction
Naval Education Training Command (NETC) shall - (1) Develop curricula for, and incorporate
ORM
instruction at all points of accession and each level of formal
leadership training, General Military Training (GMT), and all
courses where safety or force protection is addressed, i.e.,
initial warfare qualification schools, war-fighting tactics or
strategy courses, etc. Serve as the course curriculum model
manager and the course control authority for ORM.
(2) Integrate the ORM process and its specific
application to pertinent subjects into fleet tactical training
and Personnel Qualification Standards (PQS).
(3) Integrate specific applicatons of the ORM process
into Navy Occupational Standards for the Navys Individual
Training Standards.
(4) Include ORM in the orientation and training of all
personnel, military and civilian. The level of training will be
commensurate with rank, experience and leadership position.
Naval Manpower Analysis Center - shall incorporate the ORM process into Naval Standards,
curricula, and where ever specific applications warrant additional requirements.
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OPERATIONAL RISK MANAGEMENT (ORM)

REVIEW SOLUTION GUIDE

Purpose. - Previously established and reissue policy for Operational Risk Management (ORM) as an integral part of the decision-making process for all navy military and civilian personnel, on or off duty. It involves training and planning at all levels in order to optimize operational capability and readiness by teaching personnel to make sound decisions regardless of the activity in which they are involved. ORM - is a method to identify hazards, assess risks and implement controls to reduce the risk associated with any operation. CNO (N09F) - shall provide policy for ORM in the Navy and ensure specific applications of the ORM process are integrated into Navy Occupational Standards. Fleet Commanders, Echelon II Commanders and Type Commanders - provide uniform force wide guidance for identifying areas where existing instructions, standard operating procedures and command-specific applicatons and requirements be augmented with ORM as per this instruction Naval Education Training Command (NETC) shall - (1) Develop curricula for, and incorporate ORM instruction at all points of accession and each level of formal leadership training, General Military Training (GMT), and all courses where safety or force protection is addressed, i.e., initial warfare qualification schools, war-fighting tactics or strategy courses, etc. Serve as the course curriculum model manager and the course control authority for ORM. (2) Integrate the ORM process and its specific application to pertinent subjects into fleet tactical training and Personnel Qualification Standards (PQS). (3) Integrate specific applicatons of the ORM process into Navy Occupational Standards for the Navys Individual Training Standards. (4) Include ORM in the orientation and training of all personnel, military and civilian. The level of training will be commensurate with rank, experience and leadership position. Naval Manpower Analysis Center - shall incorporate the ORM process into Naval Standards, curricula, and where ever specific applications warrant additional requirements.

Commander, Commanding Officer (COs) or Officer-in-Charge (OICs) shall: - One officer and one senior enlisted are qualified as ORM instructors (additional officer and senior enlisted qualified members are encouraged based on number of personnel and unit size). They should hold significant leadership and supervisory positions in Major Departments such as Supply, OPS, Maintenance, Air, Engineering and Weapons/Combat Sytems. Action. - This instruction is effective immediately upon signature. Commands shall publish and update existing instructions or standard operating procedures to augment this instruction with command-specific applications and requirements as appropriate. (ORM) - a. Is a decision making tool used by personnel at all levels to increase operational effectiveness by identifying, assessing, and managing risks. By reducing the potential for loss, the probability of a successful mission is increased. b. Increases our ability to make informed decisions by providing a formal operational risk management process. c. Minimizes risks to acceptable levels, commensurate with mission accomplishment. The amount of risk we will accept in war is much greater than what we should accept in peace, but the process is the same. Correct application of the ORM process will reduce mishaps and associated costs resulting in more efficient use of resources. Terms - a. Hazard - Any real or potential that can cause personal injury or death, property damage or mission degradation or damage to enviorment. b. Hazard Severity - An assessment of the expected consequence, defined by degree of injury or occupational illness that could occur from exposure to a hazard. c. Mishap Probability - An assessment of the likelihood that, given exposure to a hazard, an accident will result. d. Risk - Chance of adverse outcome or bad consequences; such as injury, illness, or loss. Risk level is expressed in terms of hasard probability or severity. e. Risk Assessment - A structured process to identify and assess hazards. An expression of potential harm, discribed in terms of hazard severity, accident probability, and exposure to hazards. f. Residual Risk - Risk remaining after controls have been identified and selected. g. Operational Risk Management (ORM) - The process of dealing with risk associated within military operations, which includes risk assessment, r Risk Assessment Code (RAC) - An expression of the risk associated with a hazard that combines the hazard severity and mishap probability into a single arabic numeral. Process - a. Identify Hazards (Step 1)

Sub-category D - - Unlikely to occur. Risk Assessment Code (RAC) - The RAC is an expression of risk that combines the elements of hazard severity and mishap probability. RISK MATRIX - RISK MATRIX PROBABILITY A B C D I 1 1 2 3 II 1 2 3 4 III 2 3 4 5 SEVERITY IV 3 4 5 5 RAC Definitions: - 1 - Critical risk 2 - Serious risk 3 - Moderate risk 4 - Minor risk 5 - Negligible risk Last pg - read orm flow chart