Risk Management
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Risk Management
CPT J. Craig
SG 190
Purpose
Introduce the concept of risk management
Outline
What is Risk Management?
Why Risk Management?
Key Definitions
The Risk Management Process
Risk Management Integration
Summary
Conclusion
What is Risk Management?
Originally for high-risk complex activities (Space, Aviation)
Applicable to all Army operations at all levels
Systems based concept
Not a Science; not “Common Sense”
Why Risk Management?
Preserve combat power
Because it works!
Korean cold weather example
Dramatic decrease in accidents Army-wide
FY 96 Accident Rates
Key Definitions
Hazard
Risk
Probability
Severity
Risk Assessment
Risk Management
Residual Risk
Gambling
The Process
The Process
Compressible, flexible
Level of detail depends on:
Time available
Level of risk
Control all risks that can be controlled
Accept no unnecessary risks
Make decisions at appropriate level
Risk Management Integration
Embed RM in all Army does
Incorporates AAR
Were controls communicated?
Were controls implemented?
Was Risk Management effective?
Risk Management Integration Plan
Draft dated 24 Dec 97
Summary
What Risk Management is
Why Risk Management is important
Definitions
The Risk Management process
Risk Management Integration
Conclusion
“Risk management helps us preserve combat power and retain the flexibility for bold and decisive action. Proper risk management is a combat multiplier that we can ill afford to squander….”
General Reimer
