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Risk Management



OPNAV INSTRUCTION 3500.39C Operational Risk Management (ORM):
Risk is inherent in all tasks, training, missions, operations, and in personal activities no matter how routine.  The most common cause of task degradation or mission failure is human error, specifically the inability to consistently manage risk.  ORM reduces or offsets risks by systematically identifying hazards and assessing and controlling the associated risks allowing decisions to  be made that weigh risks against mission or task benefits.  As professionals, Navy personnel are responsible for managing risk in all tasks while leaders at all levels are responsible for ensuring proper procedures are in place and that appropriate resources are available for their personnel to perform assigned tasks. The Navy vision is to develop an environment in which every officer, enlisted, or civilian person is trained and motivated to personally manage risk in everything they do.
Operational risk management (ORM) is the process of dealing with risk associated with military operations.  It's goal is to optimize operational capability and readiness by managing the risk to accomplish the mission with minimal loss. The benefits of ORM are a reduction in mishaps and improved mission effectiveness.
Using risk management increases the ability to make informed decisions and reduces risks to acceptable levels. Operational risk management is systematic, proactive and a conscious decision made based on risk vs. benefit; whereas, the non-standard approach is random, reactive, where safety is an after thought.
Four ORM principles:
  1. Accept risk when benefits outweigh the cost.
  2. Accept no unnecessary risk
  3. Anticipate and manage risk by planning.
  4. Make risk decisions at the right level.
Operational risk management is a  5 step process:
  1. Identify Hazards (Analyze Mission, List Hazards, Determine Hazard Root Cause)
  2. Assess Hazards (Assess Severity, Assess Probability, Complete Risk Assessment)
  3. Make Risk Decisions (Identify Control Options, Determine Control Effects, Make Risk Decisions)
  4. Implement Controls (Make Implementation Clear, Establish Accountability, Provide Support)
  5. Supervise (Monitor, Review, Feedback)














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