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 Bold, Aggressive
Risk Taker
– Severity vs.
• Risk Assessment Gambler
?
• Risk Management
• Residual Risk
• Gambling
Risk Management
The Process
1. Hazard Identification 2. Hazard Assessment
Hazard
Hazard 11 - Probability/Severity
Hazard
Hazard 22 - Probability/Severity
Event
Hazard
Hazard 33 - Probability/Severity

3. Options and Decisions 4. Implementation

Options
Control A Plans
Control B Orders
Control C SOPs
Control D

5. Supervise
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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