An Introduction to Operational Risk Management

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An Introduction to Operational Risk Management

• Maj. Kenneth Gonzalez
• Deputy Vice Commander - South
• California Wing

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Imagine

• A smooth application until you hit full power
• Acceleration pushes you into your seat...
• You must make minute adjustments dealing with
  changes in the elements
• The light of day starts to fall...

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Imagine

• As natural light dims, your eyes start playing
  tricks with you
• You constantly adjust your heading and speed to
  maintain separation
• You see the traffic at 200
• You dont see the traffic at 900
• All of a sudden

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Imagine
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Why We Care

• Most people live their lives and take actions
  without thinking about whether or not it is safe
• But then
• Most people dont fly
• Most people dont have dangerous jobs
• Most people have car accidents that they can walk
  away from

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Bottom Line

• Life is risky! No risk no life
• Engaging in acts that are un-necessarily risky
  will eventually cost you (and those around you)
• Remember
• There is no task so important that we cannot
  take the time to do it safely

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Goals

• Learn the basics of Operational Risk Management
• Discover how ORM can be applied in everyday
  activities
• Adopt the ORM mindset for your flying activities

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What is ORM?

• An acronym?
• A process?
• A method?
• A way of life?
• A waste of time?

NO!
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ORM Defined

• Operational Risk Management
• is a logic-based, common sense approach to
  making calculated decisions on human, material
  and environmental factors before, during and
  after Air Force / CAP mission activities and
  operations.

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The Four Principles

• Accept no unnecessary risk
• Never accept risk when costs outweigh benefits
• Make risk decisions at the appropriate level to
  establish clear accountability
• Only accept risk when benefits outweigh the costs
• Integrate ORM into Doctrine and Planning at all
  levels

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ORM Six Step Process
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To Make It Work...

• We need
• All personnel to shift from a reactive to
  proactive safety posture
• To integrate safety into all operations
• To evolve our practices and procedures
  Continually minimizing risks and gaining
  operational efficiency

• Not mutually exclusive!

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Definitions

• Hazard - Any real or potential condition that can
  cause damage, loss, or mission degradation
• Mishap - An unplanned or series of events
  resulting in death, injury or damage

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Risk - A Function Of

• Probability of Occurrence
• Severity of the Event
• Overall exposure of resources
• Time
• Proximity
• Volume
• Repetition

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Step 1 Identification

• Identify the Hazard
• Leverage your experience
• Common sense
• What is likely to fail?
• How can someone be hurt?
• Is this an abnormal or uncommon function?
• What does your gut tell you?

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Step 2 Assessment

• Assess the Risk
• Statement of risk that makes it real
• Defines the probability
• Defines the severity
• Shows the total exposure

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Step 3 Analysis

• Analyze Risk Control Measures
• What can you do?
• What can you do differently?
• Look for what would make a positive impact on
  exposure, probability or severity

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Step 4 Decisions

• Make Control Decisions
• Examine the cost-benefit tradeoffs for each
  option you identify
• Narrow to a field of realistic alternatives
• Options to control risks
• Accepting, Avoiding, Spreading, Transferring

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Step 5 Git-R-Done

• Risk Control Implementation
• Select the strategy
• Identify expected results
• Get management buy in
• Change the work (or process)
• Train the workforce
• Start using the new strategy
• Act decisively

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Step 6 Evaluation

• Supervise and Review
• Establish metrics
• Establish monitors for performance
• Statistics
• Controls
• Evaluate performance against expectations
• Re-engage!

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Decision Making

• Most of us in our daily lives are not frequently
  required to make irrevocable decisions or when
  we do we are not sensitive to them
• An irrevocable decision is one that once made
  cannot be retracted
• Committing to a landing
• Turning back to the airport when the engine dies
  after takeoff
• Entering a grid under marginal weather conditions
• Gunning the accelerator through a yellow light

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Decision Making

• Working in an operational environment
  necessitates the occasional irrevocable decision
• Be aware of and prepare for irrevocable decisions
• Most accidents attributed to pilot error are the
  result of a cascade of bad decisions most all
  of which were not irrevocable

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Summary

• ORM
• Is practical and reliable
• Requires diligence
• Represents a new way of thinking about how we do
  what we do
• Is applicable 24x7

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QA

• Any Questions???
• References
• USAF Safety Center Homepage
• USAF Risk Management Information System

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Remember...

• kengon says
• There is no task so important that we cannot
  take the time to do it safely

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Thank You!