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Risk Management
Risk
Benefit
Risk Management CPT J. Craig SG 190
Risk Management
Purpose
Introduce the concept of risk management References: •FM 101-5, Appendix J •http://safety.army.mil/
Risk Management
Outline • • • • • • •
What is Risk Management? Why Risk Management? Key Definitions The Risk Management Process Risk Management Integration Summary Conclusion
Risk Management
What is Risk Management? • Originally for high-risk complex activities (Space, Aviation) • Applicable to all Army operations at all levels • Systems based concept • Not a Science; not “Common Sense”
Not Risk Avoidance!
Risk Management
Why Risk Management? • Preserve combat power • Because it works! – Korean cold weather example – Dramatic decrease in accidents Army-wide
• FY 96 Accident Rates Total Accident Rate
4.22 per 1000 soldiers
record low
according to Army Safety Center, Jan 97
Risk Management
Key Definitions • Hazard • Risk – Probability – Severity
• • • •
Risk Assessment Risk Management Residual Risk Gambling
Bold, Aggressive Risk Taker vs. Gambler ?
Risk Management
The Process
1. Hazard Identification Event
Hazard Hazard 11 - Probability/Severity Hazard Hazard 22 - Probability/Severity Hazard Hazard 33 - Probability/Severity
3. Options and Decisions Options Control A Control B Control C Control D
2. Hazard Assessment
4. Implementation Plans Orders SOPs
5. Supervise
Risk Management
The Process • Compressible, flexible • Level of detail depends on: – Time available – Level of risk
• Control all risks that can be controlled • Accept no unnecessary risks • Make decisions at appropriate level
Risk Management
Risk Management Integration
The Next Generation
• Embed RM in all Army does • Incorporates AAR – Were controls communicated? – Were controls implemented? – Was Risk Management effective?
• Risk Management Integration Plan – Draft dated 24 Dec 97
Risk Management
Summary • • • • •
What Risk Management is Why Risk Management is important Definitions The Risk Management process Risk Management Integration
Questions?
Risk Management
Conclusion “Risk management helps us preserve combat power and retain the flexibility for bold and decisive action. Proper risk management is a combat multiplier that we can ill afford to squander….” General Reimer
Risk
Benefit
Risk Management CPT J. Craig SG 190
Risk Management
Purpose
Introduce the concept of risk management References: •FM 101-5, Appendix J •http://safety.army.mil/
Risk Management
Outline • • • • • • •
What is Risk Management? Why Risk Management? Key Definitions The Risk Management Process Risk Management Integration Summary Conclusion
Risk Management
What is Risk Management? • Originally for high-risk complex activities (Space, Aviation) • Applicable to all Army operations at all levels • Systems based concept • Not a Science; not “Common Sense”
Not Risk Avoidance!
Risk Management
Why Risk Management? • Preserve combat power • Because it works! – Korean cold weather example – Dramatic decrease in accidents Army-wide
• FY 96 Accident Rates Total Accident Rate
4.22 per 1000 soldiers
record low
according to Army Safety Center, Jan 97
Risk Management
Key Definitions • Hazard • Risk – Probability – Severity
• • • •
Risk Assessment Risk Management Residual Risk Gambling
Bold, Aggressive Risk Taker vs. Gambler ?
Risk Management
The Process
1. Hazard Identification Event
Hazard Hazard 11 - Probability/Severity Hazard Hazard 22 - Probability/Severity Hazard Hazard 33 - Probability/Severity
3. Options and Decisions Options Control A Control B Control C Control D
2. Hazard Assessment
4. Implementation Plans Orders SOPs
5. Supervise
Risk Management
The Process • Compressible, flexible • Level of detail depends on: – Time available – Level of risk
• Control all risks that can be controlled • Accept no unnecessary risks • Make decisions at appropriate level
Risk Management
Risk Management Integration
The Next Generation
• Embed RM in all Army does • Incorporates AAR – Were controls communicated? – Were controls implemented? – Was Risk Management effective?
• Risk Management Integration Plan – Draft dated 24 Dec 97
Risk Management
Summary • • • • •
What Risk Management is Why Risk Management is important Definitions The Risk Management process Risk Management Integration
Questions?
Risk Management
Conclusion “Risk management helps us preserve combat power and retain the flexibility for bold and decisive action. Proper risk management is a combat multiplier that we can ill afford to squander….” General Reimer
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