ORM (Operational Risk Management) - Basic Level

Define ORM

It's a methodical, six-step process to manage inherent risk.

Mankind has always dealt with risks through intuition and memories of past experiences. Success through this method, has always been, and will continue to be, _______________________

hit and miss

The ORM process allows systematic risk decision-making that manages risk as part of the whole operation, reduces mishaps and improves the cost-benefit ratio by lowering risk.

True

The end result is that we are not safer, our resources are conserved and our operational capability is optimized.

False - end results is that we ARE safe

The Six Steps of the ORM Process are 1. Identify the hazards 2. Assess the risks 3. Analyze the risk control measures 4. Make control decisions 5. Risk control implementation 6. Supervise and review

True - IAADIS/R Identify, Assess, Analyze, Decisions, Implementation, Supervise/Renew

What is the foundation of the process?

Identify the hazard

Define Hazard

a condition that could cause loss

Assessing the risks is quantifying and qualifying the probability and severity of loss from exposure to the hazard.

True

Examine the hazard. After a hazard is examined, risk can not be established.

False - after examination, risk CAN be established

Use the ________________________, to prioritize the hazards into levels of risk and work on the worst one first.

Risk Assessment Index

Managers should deal in risk rather than hazards since hazards do not have an explicit mission connection.

True

Analyze risk control measures: Instigate a variety of actions which will either reduce or eliminate the risk

False: Investigate not Instigate

Determine which risks can be eliminated, reduced or controlled in some manner. If you did the previous step correctly, you'll know which one to _________________ on first.

concentrate

A risk control must change the risk by impacting the exposure, severity or the probability of a mishap. Prioritize these control measures to get the most __________________________

bang for your buck

Make control decisions: The appropriate decision maker uses cost versus benefit analysis to choose the best control(s). This step involves two actions. What are they?

First, select the best possible risk controls. Next, decide if those controls will assure that the benefits will outweigh the costs.

This decision making process should involve the right person making the decision at the right time, based on the right inputs. Who's the right person?

Whoever has the best grasp of the risk and the opportunity issues.

Make control decisions: Don't think that just because risk is present, you should avoid the activity. Only go for the risk when the total benefits don't outweigh the total costs.

False - when they DO outweight the total costs

What is the difference between a bold, prudent, decisive risk and a gamble?

Information and the process used to make the decision - ORM.

Always reject the risk when total costs outweigh total benefits.

True

Risk control implementation: The key here is for the risk controls to truly be integrated within the plans, processes and operations with which they are associated. Without integration, it won't be nearly as effective.

True

For the controls to be successful, the implementation doesn't need to be clear to everyone, there must be accountability and leadership must provide support.

False - does need to be clear to everyone

Supervise/Review: When risk controls are properly integrated, the supervision of them is just like any other leadership action -- this is the prime reason for the emphasis on completely integrating the risk controls.

True

Review is the systematic measurement of whether or not the benefit was worth the cost. This is the management aspect of ____________

ORM

One of the objectives of risk management training is to develop sufficient proficiency in applying the process so that risk management becomes an automatic part of the decision-making methodology during CAP activities and your personal time.

True

What are the 3 ORM levels?

Deliberate, Time Critical, Strategic

Deliberate Level: Primarily uses experience and brainstorming to identify hazards and develop controls and is most effective when done in a _____________

group

What level is typically used for a flight clinic, cadet activity or disaster response planning? Usually takes place well in advance of an activity in the planning stages when there's plenty of time to methodically go through the steps and develop informed risk decisions?

Deliberate Level

Early, deliberate ORM in the planning stages helps to fully integrate____ ________ into activity plans.

risk controls

The Time Critical Level is an "on-the-run" mental or verbal review of a situation using the basic risk management process without necessarily _________________________

recording the information

This level is typically used during the execution phase of an operation as well as crisis response situations.

Time Critical

Time-critical ORM is particularly helpful for choosing the appropriate course of action when an planned event occurs during execution of a planned operation or daily routine.

False - when an UNPLANNED event occurs

The Strategic Level is used to study the ___________ and associated risks in a complex operation in which the ______________ are not well understood.

hazards, hazards

This level is typically used for high-visibility risks and requires a lot of time and resources.

Strategic Level

It's important to understand that we should not only be targeting our risk issues, we should use ORM to systematically target risk _____________ in order to expand operational capabilities.

barriers

Time-critical ORM does not have to be done prior to every flight.

False

The LEVELS OF SEVERITY are Catastrophic, Critical, Moderate, and ____________________

Negligible

The Levels of Probability are Frequent, Likely, Occasional, ____________ and Unlikely.

Seldom

According to CAPR 62-1, ORM will be discussed during a unit safety meeting _________

at least annually

Which regulation states that: : New members will receive ORM familiarization training, which is included in the Level One Foundations Course.

CAPR 62-1CIVIL AIR PATROL SAFETY RESPONSIBILITIES AND PROCEDURES 3d(2)

Time critical - It's an "on-the-run" mental or verbal review of a situation using the basic risk management process without necessarily recording the information.

True

What level is typically used for a flight clinic, cadet activity or disaster response planning? Usually takes place well in advance of an activity in the planning stages when there's plenty of time to methodically go through the steps and develop informed risk decisions?

Deliberate Level

One of the objectives of risk management training is to develop sufficient proficiency in applying the process so that risk management becomes an automatic part of the decision-making methodology during CAP activities and your personal time.

True

During every CAP activity, who is most responsible for your safety?

the person you see in the mirror each morning

The end result of using ORM is that

our operational capability is optimized, our resources are conserved, and we are safer

New members will receive ORM familiarization training, which is included in the

Level One Foundation Course