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Risk Management Risk Management at a at a
GlanceGlance
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TermsTerms
HazardHazard RiskRisk ProbabilityProbability SeveritySeverity EstimatingEstimating ExposureExposure
Risk AssessmentRisk Assessment Risk DecisionRisk Decision Risk Risk
ManagementManagement Risk Risk
Management Management IntegrationIntegration
GamblingGambling
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HazardHazard
Any actual or potential condition Any actual or potential condition that can cause injury, illness, or that can cause injury, illness, or
death of personnel, damage to or death of personnel, damage to or loss equipment, property or mission loss equipment, property or mission
degradation. degradation.
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HazardHazard
Any real or potential condition that Any real or potential condition that can cause injury, illness, or death to can cause injury, illness, or death to personnel or damage to or loss or personnel or damage to or loss or equipment or property, mission equipment or property, mission degradation, or damage to the degradation, or damage to the
environment. environment.
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HazardHazard
A condition or activity with potential A condition or activity with potential to cause damage, loss or mission to cause damage, loss or mission
degradation.degradation.
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RiskRisk
Chance of a hazard or bad Chance of a hazard or bad consequences; the probability of consequences; the probability of
exposure to chance of injury or loss exposure to chance of injury or loss from a hazard; risk level is from a hazard; risk level is
expressed in terms of hazard expressed in terms of hazard probability and severity.probability and severity.
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RiskRisk
Chance of adverse outcome or bad Chance of adverse outcome or bad consequence; such as injury, illness, consequence; such as injury, illness,
or loss. Risk level is expressed in or loss. Risk level is expressed in terms of hazard probability and terms of hazard probability and
severity.severity.
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Types of RisksTypes of Risks
Tactical Tactical AccidentAccident ResidualResidual
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Tactical RiskTactical Risk
Risk concerned with a hazard that Risk concerned with a hazard that exists because of the presence of exists because of the presence of either the enemy or adversary. It either the enemy or adversary. It
applies to all levels of war and applies to all levels of war and across the spectrum of operations. across the spectrum of operations.
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Accident RiskAccident Risk
All operational risks other than All operational risks other than tactical risk including: tactical risk including: Risks to the friendly force Risks to the friendly force Risks posed to civilians by an Risks posed to civilians by an
operation operation Risks to the environment Risks to the environment Risks to equipment readiness Risks to equipment readiness
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Residual RiskResidual Risk
The level of risk remaining after The level of risk remaining after controls have been identified and controls have been identified and
selected for hazards that may result selected for hazards that may result in loss of combat power.in loss of combat power.
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Residual RiskResidual Risk
Risk remaining after controls have Risk remaining after controls have been identified and selected.been identified and selected.
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ProbabilityProbability
The likelihood that an event will The likelihood that an event will occur.occur.
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ProbabilityProbability
An assessment of the likelihood An assessment of the likelihood that, given exposure to a hazard, an that, given exposure to a hazard, an
accident will result.accident will result.
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SeveritySeverity
The expected consequence of an The expected consequence of an event in terms of degree of injury, event in terms of degree of injury,
property damage, or other mission-property damage, or other mission-impairing factors that could occur.impairing factors that could occur.
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SeveritySeverity
An assessment of the expected An assessment of the expected consequence, defined by degree of consequence, defined by degree of injury or occupational illness that injury or occupational illness that could occur from exposure to the could occur from exposure to the
hazard.hazard.
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SeveritySeverity
The expected consequence of an The expected consequence of an event in terms of degree of injury, event in terms of degree of injury,
property damage, or other mission-property damage, or other mission-impairing factors.impairing factors.
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EstimatingEstimating
Follows from examining both Follows from examining both probability and severity of probability and severity of
hazardous incidents.hazardous incidents.
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ExposureExposure
The frequency and length of time The frequency and length of time personnel and equipment are personnel and equipment are
subjected to a hazard.subjected to a hazard.
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ExposureExposure
An expression of personnel An expression of personnel exposure that considers the number exposure that considers the number
of persons exposed and the of persons exposed and the frequency duration of the exposure.frequency duration of the exposure.
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Risk AssessmentRisk Assessment
Identification and assessment of Identification and assessment of hazards; an identified hazard is hazards; an identified hazard is
assessed to determine the risk of a assessed to determine the risk of a hazardous incident due to the hazardous incident due to the
presence of the hazard.presence of the hazard.
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Risk AssessmentRisk Assessment
A structured process to identify A structured process to identify and assess hazards. An expression and assess hazards. An expression
of potential harm, described in of potential harm, described in terms of hazard severity, accident terms of hazard severity, accident
probability, and exposure to probability, and exposure to hazard.hazard.
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Risk DecisionRisk Decision
The decision to accept or not accept The decision to accept or not accept the risk(s) associated with an the risk(s) associated with an
action. Made by the commander, action. Made by the commander, supervisor, or individual performing supervisor, or individual performing the action within the constraints of the action within the constraints of
the law.the law.
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Risk ManagementRisk Management
The process of identifying, The process of identifying, assessing, and controlling risks assessing, and controlling risks
arising from operational factors and arising from operational factors and making decisions that balance risk making decisions that balance risk
cost with mission benefits.cost with mission benefits.
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Risk ManagementRisk Management
The Department of Defense’s The Department of Defense’s principal structured risk reduction principal structured risk reduction
process to assist leaders in process to assist leaders in identifying and controlling safety identifying and controlling safety and health hazards and making and health hazards and making
informed decisions.informed decisions.
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Risk Management AssistsRisk Management Assists
The commander or leader in -The commander or leader in - Conserving lives and resources and Conserving lives and resources and
avoiding unnecessary risk.avoiding unnecessary risk. Making an informed decision to Making an informed decision to
implement a course of action.implement a course of action. Identifying feasible and effective Identifying feasible and effective
control measures where specific control measures where specific standards do not exist.standards do not exist.
Providing reasonable alternatives for Providing reasonable alternatives for mission accomplishment.mission accomplishment.
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Risk Management Does Risk Management Does NotNot
Inhibit the commander’s and leader’s Inhibit the commander’s and leader’s flexibility and initiative.flexibility and initiative.
Remove risk altogether, or support a zero Remove risk altogether, or support a zero defects mindset.defects mindset.
Require a GO/NO-GO decision.Require a GO/NO-GO decision. Sanction or justify violating the law.Sanction or justify violating the law. Remove the necessity for standard drills, Remove the necessity for standard drills,
tactics, techniques, and procedures.tactics, techniques, and procedures.
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Risk Management Risk Management IntegrationIntegration
The embedding of risk management The embedding of risk management principles and practices into Army principles and practices into Army operations, culture, organizations, operations, culture, organizations, systems, and individual behavior.systems, and individual behavior.
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GamblingGambling
Making risk decisions without Making risk decisions without reasonable or prudent assessment reasonable or prudent assessment
or management of the risks or management of the risks involved.involved.
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Base OperationsBase Operations Concerns include prioritizing the Concerns include prioritizing the
execution of base operations functions to execution of base operations functions to get the most benefit from available get the most benefit from available resources. resources.
Examples include: Examples include: Allocating resources for pollution preventionAllocating resources for pollution prevention Correcting safety and health hazards Correcting safety and health hazards Correcting violations of environmental Correcting violations of environmental
protection regulationsprotection regulations
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The ProcessThe Process
The Five StepsThe Five Steps1.1. Identify hazards.Identify hazards.
2.2. Assess hazards to determine risks.Assess hazards to determine risks.
3.3. Develop controls and make risk Develop controls and make risk decisions.decisions.
4.4. Implement controls.Implement controls.
5.5. Supervise and evaluate. Supervise and evaluate.
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Riding a BicycleRiding a Bicycle
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Step 1Step 1
Identify HazardsIdentify Hazards
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Step 2Step 2
Asssess HazardsAsssess Hazards
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Assess HazardsAssess Hazards Probability – The likelihood that Probability – The likelihood that
an event will occur. an event will occur. Frequent Frequent LikelyLikely Occasional Occasional Seldom UnlikelySeldom Unlikely
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Assess HazardsAssess Hazards
Severity – The expected Severity – The expected consequence of an event in terms of consequence of an event in terms of degree of injury, property damage, degree of injury, property damage, or other mission-impairing factors.or other mission-impairing factors. CatastrophicCatastrophic CriticalCritical MarginalMarginal NegligibleNegligible
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Assess HazardsAssess Hazards
PROBABILITYPROBABILITY
SEVERISEVERITYTY
FrequentFrequentAA
LikelyLikelyBB
OccasionaOccasionallCC
SeldomSeldomDD
UnlikelyUnlikelyEE
CatastrophiCatastrophicc II
EE EE HH HH MM
CriticalCriticalIIII EE HH HH MM LL
MarginalMarginalIIIIII HH MM MM LL LL
NegligibleNegligibleIVIV MM LL LL LL LL
Risk Level: E-Extreme; H-High; M-Moderate; L-LowRisk Level: E-Extreme; H-High; M-Moderate; L-Low
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Step 3Step 3
Develop Controls and Make Risk Develop Controls and Make Risk DecisionsDecisions
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Step 4Step 4
Implement ControlsImplement Controls
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Step 5Step 5
Supervise and EvaluateSupervise and Evaluate
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The ProcessThe Process
Steps 1 and 2 make up the Steps 1 and 2 make up the assessment.assessment.
Steps 3 through 5 are the follow Steps 3 through 5 are the follow through.through.
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PrinciplesPrinciples
Integrate into planning.Integrate into planning. Accept no unnecessary risks.Accept no unnecessary risks. Make risk decisions at the proper Make risk decisions at the proper
level.level. Accept risk if benefits outweigh the Accept risk if benefits outweigh the
cost.cost.
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Risk ManagementRisk Management
ConclusionConclusion
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Risk ManagementRisk Management
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Risk Management at Risk Management at a Glancea Glance
Fort Lee Safety OfficeFort Lee Safety Office
765-3130765-3130
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