25. OPNAVINST 3500.39C Operational Risk Management (ORM)

Question 1

This is a decision making tool used by personnel at all levels
to increase effectiveness by identifying, assessing, and managing
risks.

Answer 1

ORM

Question 2

RM is defined as what?

Answer 2

Risk Management

Question 3

What are the 4 principles that provide the foundation of RM?

Answer 3

1. Accept Risk when Benefits outweigh the Costs
2. Accept NO unnecessary risk
3. Anticipate and manage risk by planning
4. Make risk decisions at the right level

Question 4

The RM process is applied on what 3 levels?

Answer 4

1. In-depth
2. Deliberate
3. Time Critical

Question 5

Examples of application of ORM at the in-depth level include:

A. long term planning of complex or contingency operations;
B. technical standards and system hazard management applied in engineering
design during acquisition and introduction of new equipment and systems;
C. major system overhaul or repair.
D. all of the above

Answer 5

D. all of the above

Question 6

At this level, the planning primarily uses experienced personnel and brainstorming and is most effective when done in a group.

Answer 6

Deliberate

Question 7

At this level, an on-the-run mental or verbal assessment of the new or changed/changing situation is the best one can do.

Answer 7

Time Critical

Question 8

What model has the Navy adopted to replace the 5-Step process during Time Critical levels of RM?

Answer 8

ABCD

Question 9

What are the 5 steps in the ORM process?

Answer 9

(1) Identify the hazards;
(2) Assess the hazards;
(3) Make risk decisions;
(4) Implement controls; and
(5) Supervise.

I-A-D-C-S

Question 10

Simply stated, the 5 steps can be summarized as 2 for Assessment and 3 for execution. What are these steps?

Answer 10

2 Assessment = Identify & Assess

3 Execution = Decision, Controls, Supervise

Question 11

What are the 2 methods for documenting the ORM process?

Answer 11

TRACS & Community Hazard Tracking databases

Question 12

This step is the foundation of the RM process and should be allotted a larger portion of time than the other steps.

Answer 12

STEP 1 - Identify Hazards

Question 13

What 3 basic steps are included in STEP 1: Identifying Hazards?

Answer 13

Analyze Mission
List the Hazards
Determine Hazard root cause

Question 14

In this step of the ORM process, degree of risk is determined in terms of probability and severity for each identified hazard.

Answer 14

STEP 2: Assess Hazards

Question 15

How many categories of Severity are there?

Answer 15

4 (I, II, III, IV)

Question 16

Identify the Severity Category for the following:

Minor Damage to Equipment, systems, property, or the environment

Answer 16

III

Question 17

Identify the Severity Category for the following:

Mission-critical security failure

Answer 17

I

Question 18

Identify the Severity Category for the following:

Slight equipment or systems damage, but fully functional and serviceable

Answer 18

IV

Question 19

Identify the Severity Category for the following:

Death or permanent total disability

Answer 19

I

Question 20

Identify the Severity Category for the following:

Significantly degraded mission

Answer 20

II

Question 21

Identify the Severity Category for the following:

Minor injury or illness

Answer 21

III

Question 22

Identify the Severity Category for the following:

Minimal threat to personnel, safety, or health

Answer 22

IV

Question 23

Identify the Severity Category for the following:

Permanent partial disability or severe injury or illness

Answer 23

II

Question 24

This is an assessment of the likelihood

that a potential consequence may occur as a result of a hazard

Answer 24

Probability

Question 25

Probability categories are assigned letters. What are they and how could you easily describe the category?

Answer 25

A = Likely to occur
B = Probably will occur
C = May occur in time
D = Unlikely to occur

Question 26

Combining the Severity (I, II, III, IV) with the Probability (A, B, C, D) in the Risk Assessment matrix produces what code?

Answer 26

RAC = Risk Assessment Code

Question 27

What is the RAC?

Answer 27

Single arabic numeral showing level of risk for each hazard

Question 28

T/F: It is important to consider less severe consequences of a hazard if they are more
likely than the worst credible consequence, since this combination may actually present a greater overall risk.

Answer 28

TRUE

Question 29

Define the RAC’s.

Answer 29

1 = Critical
2 = Serious
3 = Moderate
4 = Minor
5 = Negligible

Question 30

Define this pitfall: Over Optimism

Answer 30

Not being totally honest or not looking for root causes.

Question 31

Define this pitfall: Misrepresentation

Answer 31

Individual perspective may distort the data.

Question 32

Define this pitfall: Alarmism

Answer 32

“The sky is falling” or “worst case” estimates are used regardless of their possibility.

Question 33

Define this pitfall: Indiscrimination

Answer 33

All data is given equal weight

Question 34

Define this pitfall: Prejudice



Answer 34

Subjective or hidden agendas are used vice facts

Question 35

Define this pitfall: Inaccuracy

Answer 35

Bad or misunderstood data nullify accurate risk assessment.

Question 36

Define this pitfall: Enumeration

Answer 36

Difficulty in assigning a numerical value to human behavior.

Question 37

What are the criteria for effective controls?

Answer 37

Suitability
Feasibility
Acceptability
Explicitness
Support
Standards
Training
Leadership
Individual

Question 38

Numerous Control Options include:

Answer 38

REJECT the risk
AVOID the risk
DELAY an action
TRANSFER the risk
COMPENSATE FOR the risk

Question 39

What are the three different types of controls?

Answer 39

ENGINEERING
ADMINISTRATIVE
PHYSICAL