Operational Risk Management

OPNAV Instruction 3500.39C
Operational Risk Management
Most common cause of task degradation or mission failure:
Human error
ORM reduces or offsets risks by allowing decisions to be made that:
Weigh risks against mission or task benefits
Leaders at all levels are responsible for ensuring:
Proper procedures are in place and that appropriate resources are available for their personnel to perform assigned tasks.
Purpose of Instruction:
To standardize the operational risk management process across the Navy, and establish training continuum
Emphasis for junior personnel should be on:
Time critical risk management since they are responsible for “doing” the task and less involved with the planning
Emphasis for more senior personnel should be on:
In-depth or deliberate risk management
Responsibilities for Commander, Naval Safety Center include:
Subject Matter Expert for the Navy program.

Standardizing staff evaluation training for Fleet evaluations.

Maintain an ORM Web page.

Explore new technologies and alternative training systems.

Make recommendations to the Vice Chief of Naval Operations on policy

Echelon 2 Commanders, Regional commanders, and Type commanders shall:
Provide uniform force-wide guidance.

Establish an evaluation policy for subordinate commands.

Ensure application training is tailored to pre-deployment unit and group training, operations, and exercises.

Review evaluations for gaps and best practices, and forward the results to ORM model manager.

Naval Manpower Analysis Center shall:
Shall Incorporate the ORM process into Naval standards, and curricula.
Commanders, Commanding Officers, or Officers In Charge shall:
Designate in writing the executive officer, or equivalent, as the command ORM manager.
The Executive Officer, ORM manager shall:
Shall select at least one officer and one senior enlisted person, or a civilian equivalent, for designation as ORM assistants.
ORM assistant qualification is earned by:
Completing the instructor-led ORM Application and Integration Course.
OPNAV 3502/1
Evolution ORM Assessment Sheet
OPNAV 3502/2
Tailorable Evolution ORM Assessment Sheet
OPNAV 3502/3
ORM Program Assessment Sheet
Concept of Operational Risk Management:
Decision making tool used to increase effectiveness by identifying, assessing, and managing risks.
ORM minimizes risks to:
Acceptable levels
ORM must be practiced 24 hours a day, 7 days a week, and:
365 days per year
Key attributes of ORM:
Increases probability of success.

Minimize risk to acceptable levels.

Enhance decision making skills.

Provide a systematic structure.

Make informed risk decisions.

ORM does not:
Inhibit flexibility, initiative, or accountability.

Remove risk altogether or support a ZERO DEFECT mindset.

Remove the necessity for practice, drills, rehearsals, tactics, techniques, and procedures.

Principles of ORM:
Accept Risk when Benefits Outweigh the Cost.

Accept No Unnecessary Risk.

Anticipate and Manage Risk by Planning.

Make Risk Decisions at the Right Level.

Levels of ORM:


Time Critical

1) In-Depth Level:
Refers to situations where time is not a limiting factor and the right answer is required for a successful mission or task
2) Deliberate Level:
Refers to situations when there is ample time to apply the Risk Management process to the detailed planning of a mission or task. Planning primarily uses experienced personnel, most effective when done in a group.
3) Time Critical Level:
Level at which personnel operate on a daily basis both on-and off-duty. Being at the point of commencing or during execution of a mission or task. Little or no time to make a plan. On-the-run mental or verbal assessment of the new or changed/changing situation is the best one can do.
During what Level of ORM is the 5-step process proven impractical and ineffective:
Time Critical Level
ORM Process overview:
Systematic continuous and repeatable process that consists of five steps:

1) Identify Hazards.
2) Assess Hazards.
3) Make risk decisions.
4) Implement controls.
5) Supervise.

The first two steps of ORM comprise:
These steps comprise the risk assessment portion of ORM and provide enhanced awareness and understanding of a given situation.
The remaining three steps of ORM are:
These steps are essential follow-through actions to either eliminate the hazard or mitigate the risks.
TRACS is a Web based software application that:
Assists the user in completing a deliberate risk assessment.
To determine the Risk Assessment Code (RAC):
Combine the severity with the probability to determine the risk assessment code
Time Critical Risk Management refers to:
Refers to applying ORM at the point of commencing or during execution of a mission or task, at the time critical level.
Assess the situation
Balance resources
Communicate to others
Do and Debrief the event
Using the ABCD Model daily creates:
A habit and trains the brain to continue thinking under duress or stress.
The ABCD Model is not a replacement for the:
5 Step ORM process
ORM training periodicity for individuals:
Annually through GMT course, Stand downs, Command indoctrination, Immersion training, Navy E-Learning.
Note that Operational Risk Management, General Military Training is no longer a mandatory GMT course.
What are the two types of ORM Assessments:
Evolution Evaluation.

Program Evaluation.

Evolution Evaluation:
Evaluation of a unit, staff, or groups application of the ORM principles and processes during execution of a complex evolution.
Program Evaluation:
Evaluation of ORM integration into the commands policies and training and the compliance with ORM directives.
How often shall all Navy commands conduct an ORM program evaluation:
At least annually, using the Program Assessment Sheet.
OPNAV 3502/3:
ORM Program Assessment Sheet
Actions taken or measures put in place to eliminate a hazard or reduce the associated identified risk.
An expression that considers the frequency, length of time, and percentage of people or assets subjected to a hazard.
Any real or potential condition that can cause injury, illness, or death to personnel; degradation of mission capability or impact to mission accomplishment; or damage to the environment.
An unplanned event or series of events resulting in death, injury, occupational illness; damage to or loss of equipment or property; or damage to the environment.
Operational Analysis:
A chronological or sequential list of the major events or elements in a mission or task.
A measure of the likelihood that a potential consequence will occur.
Residual Risk:
Risk remaining after controls have been identified and selected