Operational Risk Management - Assessing & Mitigating risk is critical. For more about Project Succes, Read: Key Points To Project Succes @ http://mediotype.com/blog/development/quick-key-points-to-project-management-success

1. Operational Risk
Management
... Planning Mission Success

3. Overview
• What is ORM
• Applicability
• Principles
• The five steps
• Risk matrix
• Example

4. What is ORM?
Risk management is the process of identifying, assessing, and
controlling risks arising from operational factors and making
decisions that balance risk costs with mission benefits.
Risk is characterized by both the probability and severity of a potential
loss that may result from hazards.

5. Applicability
Risk management assists management in:
•
•
•
Conserving resources and avoiding unnecessary risk.
Making an informed decision
Identifying feasible and effective control measures where specific standards do not exist.
Risk management does not:
•
•
•
•
Inhibit the management's flexibility and initiative.
Remove risk altogether, or support a zero defects mindset.
Require a GO/NO-GO decision.
Remove the necessity for standard practices.

6. Principles
1. Making risk decisions at the appropriate level.
2. Accepting no unnecessary risk

7. The five steps
1. Identify hazards
2. Assess hazards to determine risk
3. Develop controls and make risk decisions
4. Implement controls
5. Supervise and evaluate

8. Risk matrix

9. Hazard Assessment
Managing for critical risks avoids catastrophic
failures

10. Questions?
Email: diveinto@mediotype.com