Encl. (1) to COMDTINST 3500.3
If the mission's benefits outweigh the risks, with controls in place
determine if the current level in the chain of command can implement
all the controls. If not, find assistance from the next level in the
chain of command.
When notified of a situation whose risk outweighs benefit, the next
level in the chain of command should assist with implementing required
controls, modify or cancel the mission, or accept the identified risks.
The equation Risk = Severity x Probability x Exposure defines what is
called the expected value of the loss. However, individuals can value the
same loss differently because the loss may affect their overall satisfaction
(their needs, issues, and concerns) differently. It is easy to overlook the
issue of perceived value in typical risk management theories, but it may
determine the kinds of actions decision-makers take in weighing risk vs.
gain. Personnel should be aware the acceptability of risk can vary from
person to person because the perceived risk, affected by different values
placed on the expected loss, also varies. Therefore, while taking this
"reality check" step in the risk management process, it is wise to
consider a loss's perceived as well as expected value to avoid potential
controversy when making risk decisions.
Step 6:
Execute the Decision: Once the risk control decision is made, assets must
be made available to implement the specific controls. Part of implementing
control measures is informing the personnel in the system of the risk
management process results and subsequent decisions. If personnel disagree,
the decision-makers should explain the decision rationally. Carefully
documenting the decision and all steps in the process, usually done only
for deliberate or strategic ORM applications, facilitates communications
and clarifies the rational process behind risk management decisions.
Step 7:
Monitor the Situation: Monitor the situation to ensure the controls are
effective and remain in place. Identify changes requiring further risk
management and act on them. Take action when necessary to correct
ineffective risk controls and reinitiate the risk management steps in
response to new hazards. It is important to remember RISK MANAGEMENT IS A
CONTINUOUS PROCESS. Failure to respond to changes in the situation can
become a link in a chain of errors that lead to a mishap.
III. Levels of Risk Management
The risk management process exists on three levels. While it may be desirable to apply risk management in depth
to every mission or task, time and resources may not always be available. One objective of risk management
training is to develop sufficient proficiency in applying the process so risk management becomes an automatic part
of the decision-making methodology on and off duty. Leaders must employ the risk management process to make
sound, timely decisions. The three levels of risk management are:
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