The 5 steps of Operational Risk Management (ORM) are a systematic process to identify, assess, and mitigate risks, ultimately enhancing safety and mission success. Here's a breakdown of each step:
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Identify Hazards: This initial step involves thoroughly examining the environment, equipment, procedures, and personnel involved in an operation to pinpoint potential hazards. A hazard is any condition with the potential to cause harm, injury, illness, or damage to property or equipment.
- Example: Identifying a slippery surface due to spilled oil as a potential hazard.
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Assess Hazards: Once hazards are identified, the next step is to assess the severity and probability of the potential consequences if the hazard is realized. This assessment helps prioritize risks and determine the level of control necessary. Risk assessment matrices are often used to quantify the level of risk (e.g., low, medium, high).
- Example: Assessing the slippery surface identified earlier as having a high probability of causing a slip and fall, resulting in a moderate injury.
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Make Risk Decisions: Based on the risk assessment, determine the appropriate level of risk to accept. This involves weighing the benefits of the operation against the potential risks and considering the available resources for mitigation. Risk decisions are usually made at the appropriate level of authority, with higher-risk situations requiring higher-level approval.
- Example: Deciding that the risk of someone slipping on the oil is unacceptable given the potential for injury and deciding to postpone operations until the oil is cleaned up.
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Implement Controls: This step focuses on developing and implementing specific actions to eliminate hazards or reduce their associated risks. Controls can include engineering controls, administrative controls, and personal protective equipment (PPE). The most effective controls eliminate the hazard altogether, while less effective controls reduce the likelihood or severity of the consequences.
- Example: Cleaning up the spilled oil to eliminate the slipping hazard, or alternatively, providing non-slip footwear if cleaning is not immediately possible. Other controls might include posting warning signs.
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Supervise and Watch for Change: This final step involves continuously monitoring the effectiveness of the implemented controls and looking for any changes in the environment or operation that could introduce new hazards or alter the existing risk profile. This step emphasizes the dynamic nature of risk management and the need for ongoing vigilance. Continuous monitoring and feedback are critical to ensure the safety and effectiveness of operations.
- Example: After cleaning up the oil, regularly inspecting the area to ensure no new spills occur. Also, observing personnel to ensure they are using provided PPE correctly. Any changes, such as a different type of oil being used, would trigger a re-evaluation of the hazards and controls.
