Operational Risk Management (ORM): A continuous, systematic process of identifying and
controlling risks in all activities according to a set of pre-conceived parameters by applying appropriate
management policies and procedures. This process includes detecting hazards, assessing risks, and
implementing and monitoring risk controls to support effective, risk-based decision-making.
Risk: The chance of personal injury or property damage or loss, determined by combining the results
of individual evaluations of specific elements that contribute to the majority of risk concerns. Risk
generally is a function of severity and probability. The models in this Instruction, however, single out
exposure as a third risk factor.
Severity: An event's potential consequences in terms of degree of damage, injury, or impact on a
: The likelihood
an individual event
Exposure: The amount of time, number of cycles, number of people involved, and/or amount of
equipment involved in a given event, expressed in time, proximity, volume, or repetition.
Mishap: An unplanned single or series of events causing death, injury, occupational illness, or damage
to or loss of equipment or property.
Hazard: Any real or potential condition that can endanger a mission; cause personal injury, illness, or
death; or damage equipment or property.
: The systematic process
of evaluating various risk levels for specific
identified with a particular task or operation. Various models are available to complete this step in the
Risk Rating Scale: A scale of specific risk degrees, determined during the ORM process's risk
assessment step. Various Coast Guard communities and activities should use the safety industry's
standard terms low, medium, and high when discussing risk across program lines. However, each
community will define low, medium, and high risk in terms meaningful to its own personnel.