NOAA RISK MANAGEMENT by rod21144

VIEWS: 16 PAGES: 61

									      NOAA
RISK MANAGEMENT
             Presented by:
 Safety and Environmental Compliance
                 Office
            NOAA SECO 10-23-2005       1
Agenda
 1. NOAA Risk Management Fundamentals
    1.1 Definition of Risk and Risk Management
    1.2 Responsibility for NOAA Risk Management
    1.3 Governance - Risk Management Policy
    1.4 Governance Structure for Risk Management
    1.5 Framework for Risk Management
    1.6 Factors governing the Risk Management decision
    1.7 The Risk Management Process

 2. Risk Management Best Practise
 3. Relationship between Risk Management
    and Internal Audit
 4. Practical Implications for Municipalities
 5. Conclusion
                     NOAA SECO 10-23-2005                2
NRM




      NOAA SECO 10-23-2005   3
 Risk Management Fundamentals
                     What is Risk?
The impact of uncertain future events that could influence the
achievement of an organization‟s objectives.
Risk directly impacts on the service delivery objective of the
organization, because it manifests as the chance of a loss due
to adverse events:
       Interruptions to service delivery and loss of personnel
       property and equipment.
       Consequences of loss of services, property and
       equipment and revenue on the (balance sheet,
       performance against budget)
Risk creates uncertainty and makes planning difficult
                       NOAA SECO 10-23-2005                4
Risk Management Fundamentals
What is Risk Management?

•   Risk management focuses on the ability of the organization to
    meet objectives in the future by identifying risk and making
    decisions to manage these risks
•   Risk management starts with the strategic planning process
•   Risk Management is a dynamic, ongoing assessment, decision-
    making and implementation process that is integrated with
    management activities
•   Risk Management uses instruments such as Job Safety
    Analysis (JSA‟s), control processes, strategy/product changes,
    research/intelligence, risk shifting to control, eliminate or reduce
    risk.


                           NOAA SECO 10-23-2005                            5
 Risk Management Fundamentals
Who is responsible for risk management ? NOAA Perspective
    EACH LINE/STAFF OFFICE and EVERY NOAA EMPLOYEE
    The ENTIRE NOAA ORGANIZATION is responsible for managing operational risk, from
    the Senior Executive to the employee in the field, the Organization must for this purpose,
    take all reasonable steps to ensure;
               i.   that the organization has and maintains effective, efficient and
                    transparent systems of safety and risk management and internal control;
                    and
               ii.  of internal audit operating in accordance with any prescribed norms and
                    standards.

    INTERNAL AUDITORS
    The internal auditors at the operational level of the organization or LECO‟s must
              i.    Prepare a risk- based audit plan and internal audit program for each
                    job/task; using job safety analysis (JSA)
              ii.   Advice management and report to the audit findings to the safety
                    committee on the implementation of the internal audit plan and matters
                    relating to risk and risk management



                                   NOAA SECO 10-23-2005                                      6
    Risk Management Fundamentals
Who is responsible for risk management ? Practical Perspective
• Risk appears across all departments, disciplines,
   individuals and activities within our organization.
   – Every role/job deals with some aspect of risk
   – The Office Employee, Safety Audit Team, The Scientist,
      Ship‟s Cook, Ship‟s Captain, The Aircraft Pilot, Utility-
      Man and Electrician, etc all deal with risk on their own

• In other words - Everyone is responsible!
   – Executives and Managers – Management of risk,
     decision making
   – Employees – Implementation, vigilance
            Management cannot transfer or outsource the
                responsibility for risk management !
                         NOAA SECO 10-23-2005                     7
    NOAA RISK MANAGEMENT
           CONCEPT
• All are responsible for using NRM.
• Risk is inherent in all operations.
• Risk can be controlled.




                  NOAA SECO 10-23-2005   8
      NOAA RISK MANAGEMENT
            (NRM) will…
• Expand operational capabilities in
  virtually all areas.
• Significantly enhance overall
  decision making skills.
• Power-down decision making.
                                           Risk
• Make NRM the leading edge of
  improved employee-management                    Benefit
  relations.
• Provide a budgetary tool for fiscal
  decision making
• Cut losses significantly.


                          NOAA SECO 10-23-2005              9
     NOAA RISK MANAGEMENT
        4 KEY PRINCIPLES
Four principles govern all actions associated with
   risk management. These continuously
   employed principles are applicable before,
   during and after all tasks and operations.

1. Accept no unnecessary risks.
2. Make risk decisions at the appropriate
   level.
3. Accept risks when benefits outweigh
   costs.
4. Integrate NRM into operations and planning at all
   levels.
                    NOAA SECO 10-23-2005               10
NOAA RISK MANAGEMENT
   6-STEP PROCESS

       6. Supervise     1. Identify
       and Review      the Hazards



   5. Implement               2. Assess
   Risk Controls              the Risks


                          3. Analyze
            4. Make
                         Risk Control
            Control
                          Measures
           Decisions




              NOAA SECO 10-23-2005        11
   NOAA RISK MANAGEMENT
Step 1. IDENTIFY THE HAZARDS
The purpose is to identify as many hazards
  as possible. A hazard can be defined as
   any real or potential condition that can
 cause mission degradation, injury, illness,
       death or damage to property.




                NOAA SECO 10-23-2005       12
   NOAA RISK MANAGEMENT
 HAZARD IDENTIFICATION TOOLS
      Tool               Purpose                        Method
Operation         To understand the flow of     List events in sequence.
Analysis          events.                       May use time checks.


Preliminary       To get a quick survey of all Tie it to the OA. Quickly
Hazard Analysis   phases of an operation.      assess hazards using
                                               scenario thinking,
                                               brainstorming and SMEs.
“What If”         To capture the input of       Choose an area (not an
                  operational personnel in a    entire operation), get a
                  brainstorming-like            group and generate as
                  environment.                  many as what ifs as
                         NOAA SECO 10-23-2005   possible.               13
   NOAA RISK MANAGEMENT
 HAZARD IDENTIFICATION TOOLS
      Tool                 Purpose                        Method
Scenario Process To use imagination and           Using the OA as a guide,
Tool             visualization to capture         visualize the flow of
                 unusual hazards.                 events.

Logic Diagram      To add detail and rigor to     Three types of diagrams-
                   the process through the        positive, negative and risk
                   use of graphic trees.          event.

Change Analysis    To detect the hazard           Compare the current
                   implications of both           situation to a previous
                   planned and unplanned          situation.
                   change.
                           NOAA SECO 10-23-2005                             14
    NOAA RISK MANAGEMENT
    Step 2. ASSESS THE RISKS
Risk is the probability and severity of loss
  from exposure to the hazards. The
  assessment step is the application of
  quantitative or qualitative measures to
  determine the level of risk associated with
  a specific hazard. Use the Risk
  Assessment Code Matrix to help you
  prioritize the risks.

                 NOAA SECO 10-23-2005       15
       NOAA RISK MANAGEMENT
       RISK ASSESSMENT CODE
               MATRIX
                              EVENT PROBABILITY
                   Frequent       Likely    Occasional   Seldom   Unlikely

S   Catastrophic      1             1           2          3         3
E
V   Critical          1             1           2          3         4
E
R   Major             1             2           3          4         4
I
T   Minor             2             3           4          4         5
Y

    Negligible        2             3           4          4         5


                              NOAA SECO 10-23-2005                           16
     NOAA RISK MANAGEMENT
     RISKS ASSESSMENT CODE
                           Severity
Catastrophic - Complete mission failure, death or loss of a
  system.
Critical - Chief mission degradation, severe injury, occupational
  illness or major system damage.
Major - Key mission degradation, injury, minor occupational
  illness, or minor system damage.
Minor - Trivial mission degradation, injury, occupational illness,
  or minor system damage.
Negligible - Less than minor mission degradation, injury,
  occupational illness, or minor system damage.
                         NOAA SECO 10-23-2005                        17
    NOAA RISK MANAGEMENT
    RISKS ASSESSMENT CODE
                     Probability
Frequent – Occurs often career/equipment service life
   (Continuously)
Likely – Occurs several times in career/equipment life
   (Occurs frequently)
Occasional – Occurs sometime in career/equipment life
   (Occurs sporadically)
Seldom – Possible to occur in career/equipment life
   (Remote chance of occurrence)
Unlikely – Can assume will not occur in career/equipment
   life (possible, but improbable)

                     NOAA SECO 10-23-2005                  18
   NOAA RISK MANAGEMENT
Step 3. ANALYZE RISK CONTROL
          MEASURES

Investigate specific strategies and tools that
  reduce, mitigate, or eliminate the risk.
Effective risk control measures reduce or
  eliminate one of the three components
  (probability, severity or exposure) of risk.

                 NOAA SECO 10-23-2005            19
   NOAA RISK MANAGEMENT
Step 3. ANALYZE RISK CONTROL
       MEASURES (cont‟d)
Reject – We can and should refuse to take a risk if the overall
  costs exceeds its mission benefits.
Avoid – Avoiding the risk altogether requires canceling or
  delaying the job, mission, or operation, but is an option that
  is rarely exercised.
Delay – It may be possible to delay a risk if there is no time
  deadline or other operational benefit for a quick
  accomplishment of a risky task.
Spread – Risk is commonly spread out by either increasing
  the exposure distance or by lengthening the time between
  exposure events.     NOAA SECO 10-23-2005                    20
   NOAA RISK MANAGEMENT
Step 3. ANALYZE RISK CONTROL
       MEASURES (cont‟d)
Compensate – We can create redundant capability in certain
   circumstances (back-up plans)
Reduce – The overall goal of NRM is to plan missions or
   design systems that do not contain hazards. A proven
   order of precedence for dealing with hazards and
   reducing the resulting risks is:
  1. Plan or design for minimum risk
  2. Incorporate safety devices
  3. Provide Warning devices
  4. Develop procedures and training
                      NOAA SECO 10-23-2005               21
   NOAA RISK MANAGEMENT
Step 3. ANALYZE RISK CONTROL
       MEASURES (cont‟d)
The following options assist in identifying
 potential controls:

   Engineer                      Train and Educate
   Guard                         Warn
   Improve Task Design           Motivate
   Limit Exposure                Reduce Effects
   Selection of Personnel        Rehabilitate
                  NOAA SECO 10-23-2005               22
 NOAA RISK MANAGEMENT
  Step 4. MAKE CONTROL
        DECISIONS

After controls have been selected to
 eliminate hazards or reduce their
 risk, determine the level of residual
 risk for the selected tasking,
 mission and/or course of action.


             NOAA SECO 10-23-2005        23
      NOAA RISK MANAGEMENT
       Step 4. MAKE CONTROL
         DECISIONS (cont‟d)
• Accept the plan as is. - Benefits outweigh risks (costs), and total
  risk is low enough to justify the proposed action if something goes
  wrong. The decision maker must allocate resources to control risk.
  Available resources are time, money, personnel, and/or equipment.
• Reject the plan out-of-hand. - Risk is too high to justify the
  operation in any form. The plan was probably faulty in some
  manner, or the objective was not that important.
• Modify the plan to develop measures to control risk. – The plan
  is valid, but the current concept does not adequately minimize risk.
  Further work to control the risk is necessary before proceeding.
• Elevate the decision to higher authority. – The risk is too great for
  the decision maker to accept, but all measures of controlling risk
  have been considered. If the operation is to continue, a higher
  authority must make the decision if the mission or task is worth it,
  and accept the risk.      NOAA SECO 10-23-2005                       24
       NOAA RISK MANAGEMENT
        Step 4. MAKE CONTROL
          DECISIONS (cont‟d)
• Make Risk Decisions at the Appropriate Level –
    Factors below become the basis of a decision-making system to
    guide leaders:

•   Who will answer in the event of a mishap?
•   Who is the senior person at the scene?
•   Who possesses best insight into the full benefits and costs of a risk.
•   Who has the resources to mitigate the risk?
•   What level makes the most operational sense?
•   What level makes these types of decisions in other activities?
•   Who will have to make this decision in/during field operations?
                            NOAA SECO 10-23-2005                         25
     NOAA RISK MANAGEMENT
      Step 5. IMPLEMENT RISK
             CONTROLS
  Once the risk control decision is made, assets must be
  made available to implement specific controls. Part of
  implementing control measures is informing the
  personnel in the system of the risk management process
  results and subsequent decisions. Careful
  documentation of each step in the risk management
  process facilitates risk communication and the rational
  processes behind risk management decisions.
• Make Implementation Clear
• Establish Accountability
• Provide Support

                      NOAA SECO 10-23-2005              26
   NOAA RISK MANAGEMENT
Step 6. SUPERVISE AND REVIEW

 Risk Management is a process that
 continues throughout the life cycle of the
 system, mission or activity. Leaders at
 every level must fulfill their respective
 roles in assuring controls are sustained
 over time. Once controls are in place, the
 process must be periodically reevaluated
 to ensure their effectiveness.
               NOAA SECO 10-23-2005           27
   NOAA RISK MANAGEMENT
Step 6. SUPERVISE AND REVIEW
            (cont‟d)
Supervise – Monitor the operation to ensure:
• Controls are effective and remain in place.
• Changes which require further risk management are
  identified.
• Action is taken when necessary to correct ineffective risk
  controls and reinitiate the risk management steps in response
  to new hazards.
• Anytime the personnel, equipment or mission taskings change
  or new operations are anticipated in an environment not
  covered in the initial request management analysis, the risks
  and control measures should be re-evaluated.
• Successful mission performance is achieved by shifting the
  cost versus benefit balance more in favor of benefit through
  controlling risks.
                       NOAA SECO 10-23-2005                 28
   NOAA RISK MANAGEMENT
Step 6. SUPERVISE AND REVIEW
            (cont‟d)
Review – After assets are expended to control risks, then
  a cost benefit review must be accomplished to determine
  if risk and cost are in balance.

• Is the actual cost in line with expectations?
• What effect did control measures have on performance?
• Was a mission feedback system established to ensure that
  the corrective or preventative action taken was effective?
• Was documentation available to allow a review of the risk
  decision process?
• What measurements were in place to ensure accurate
  evaluations of how effectively controls eliminated hazards or
  reduced risks.
                       NOAA SECO 10-23-2005                   29
   NOAA RISK MANAGEMENT
Step 6. SUPERVISE AND REVIEW
            (cont‟d)

Feedback – Feedback informs all involved as to
  how the implementation process is working and
  whether or not the controls were effective.
  Feedback can be in the form of briefings,
  lessons learned, cross-tell reports,
  benchmarking, database reports, accident
  illness reports, etc.

                  NOAA SECO 10-23-2005            30
   NOAA RISK MANAGEMENT
      THE 5M CONCEPT
   The 5M concept is a
   commonly used tool to
   graphically illustrate the
  relationship that exists in
any typical process. In this
      case, the dynamic
 interaction of the man, the
   machine and the media
(environment) converge to
produce either a successful
mission or if unsuccessful, a
    mishap. Management
  provides guidance, policy
        and standards.

                      NOAA SECO 10-23-2005   31
      NOAA RISK MANAGEMENT
      THE 5M CONCEPT (cont‟d)
Man – category encompasses all NOAA employees. It
  includes training, selection, proficiency, habit patterns,
  performance and personal factors. In risk assessment,
  the operator is always an essential element, i.e., and the
  human who operates the machine within a media under
  management criteria. Some of these human elements
  are:
• Selection: right person emotionally/physically trained in
  event proficiency, procedural guidance and habit pattern.




                       NOAA SECO 10-23-2005                32
      NOAA RISK MANAGEMENT
      THE 5M CONCEPT (cont‟d)
• Performance: awareness, perceptions, saturation,
  distraction, channelized attention, stress, peer pressure,
  confidence, insight, adaptive skills, pressure/workload,
  fatigue (physical, motivational, sleep deprivation, circadian
  rhythm, klutz).
• Personal Factors: Expectancies, job satisfaction, values,
  families/friends, command control, discipline (internal and
  external), modeling, pressure (over tasking) and
  communication skills.



                        NOAA SECO 10-23-2005                    33
     NOAA RISK MANAGEMENT
     THE 5M CONCEPT (cont'd)
Media – is the environment with which employees operate.
  This includes climate, terrain and noise/distractions.
  These external, largely environmental forces vary and
  must be considered when assessing risk:
• Climatic: Temperature, seasons, precipitation, aridity and
  wind.
• Operational: Routes, surfaces, terrain, vegetation,
  obstructions and constrictions.
• Hygienic: Vent, noise, toxicity, corrosives, dust and
  contaminants.
• Vehicular/Pedestrian: paved, gravel, dirt, ice, mud, dust,
  snow, sand, hilly, curvy.

                      NOAA SECO 10-23-2005                34
    NOAA RISK MANAGEMENT
    THE 5M CONCEPT (cont'd)
Machine – the Machine category encompasses any tool
  and/or equipment an employee may use or operate. The
  machine category includes it‟s design, it‟s maintenance,
  technical orders and its user perception. This can be as
  simple as a necropsy knife to a multi-million dollar
  aircraft and consist of:
• Design: engineering and user friendly (ergonomics).
• Maintenance: Training, time, tools and parts.
• Logistics: supply, upkeep and repairs.
• Tech Data: clear, adequate, useable and available.

                     NOAA SECO 10-23-2005               35
     NOAA RISK MANAGEMENT
     THE 5M CONCEPT (cont'd)
Management – is the final coordinating category. Management
  provides the enforcement and establishment of standards,
  procedures and controls. It drives the interaction between
  MAN, MEDIA, MACHINE and MISSION. Management
  dictates the process by defining Standards, Procedures and
  Controls.
   There is significant overlap between Man, Machine, Mission
  and Media because these elements interrelate directly, but
  the critical element is Management. Any breakdown within the
  man, machine, mission or media must viewed as an effect of
  management performance. When outcome fails to meet
  anticipated goals, these

                       NOAA SECO 10-23-2005                 36
     NOAA RISK MANAGEMENT
     THE 5M CONCEPT (cont'd)
5 M‟s must be thoroughly reassessed. Management is the
  controlling factor in defining the process of either
  production success or failure.

Mission – The desired outcome. Successful missions, or
  mishaps do not just happen, they are indicators of how
  well a system is functioning. The basic cause factors for
  mishaps fall into the same categories as the contributors
  to successful missions - Man, Media, Machine and
  Management.


                      NOAA SECO 10-23-2005                37
Objective:
                                                                      Date Worksheet Prepared: _________________
                   Step 1.                               Step 2.                 Step 3.                   Step 4.             Step 5.
              Identify Hazards                      Assess Hazards          Make Risk Decisions       Implement Controls      Supervise

   Operation           Hazards         Causes            Initial           Develop         Residual    How to Implement    How to Supervise
    Phases                                                RAC              Controls         RAC




Risk Assessment Code: RAC                                              Accept Risks:     Yes No       Lessons Learned:
Catastrophic=1 Critical=2 Major=3 Minor=4 Negligible=5
                                                                       Como with higher: Yes No


                                                                   NOAA SECO 10-23-2005                                              38
RISK MANAGEMENT WORKSHEET


Risk Management Worksheet
                                                                                                           PAGE ______ OF ______



1. OBJECTIVE/TASK:                                                    2. DATE/TIME BEGIN:        3. DATE PREPARED:

4. PREPARED BY: (Rank, Name, Duty Title)
5. HAZARDS                  6. RISK    7. CONTROL(S)                                10. HOW TO IMPLEMENT          11. WHO      12..
Step 1                      LEVEL      Step 3                                       Step 4                        IMPLEMENTS   STATUS
                            Step 2                                                                                Step 5        (Y/N)
                                                                                                                               Step 6




8. OVERALL RISK LEVEL AFTER CONTROLS ARE IMPLEMENTED (Circle one)                   9. RISK DECISION AUTHORITY
Step 3

  1=Catastrophic          2=Critical       3=Major     4=Minor      5=Negligible




                                                       NOAA SECO 10-23-2005                                                        39
 WORKSHEET INSTRUCTIONS
Block
1-4   Self-explanatory
5.    Identify Hazard: Objective is to ID those things most likely to have a negative impact
      on the mission.
6.    Assess Risk: Determine risk of each hazard using the Risk Assessment Matrix. In
      Block 6, enter the risk level for each hazard, i.e., 5-Negligible, 4-Critical, 3-Minor, 2-
      Major, or 1-Catastrophic.
7.    Develop Controls: Develop one or more controls for each hazard to reduce its risk.
      As needed, specify who, what, where, when, and how for each control.
8.    Determine Mission/Task Risk: From Block 8, identify hazard with highest residual
      risk. This is the overall risk for the task/mission. Circle the appropriate risk level in
      Block 9.
9.    Make Risk Decision: Decide to accept or not accept the residual risk for this
      mission/task. Unit commander will determine authority and level for risk acceptance.
      Decisions for high and extremely high risk levels should be elevated up the chain of
      command.
10.   Implement Controls: Decide how each control will be put into effect/communicated to
      the personnel who will make it happen (written instructions, operating instructions,
      checklists, dry-runs). Enter in Block 10.
11.   Supervise: Show how each control will be monitored to ensure proper implementation
      (i.e., continuous supervision, spot checks, etc.). Enter in Block 11.
12.   Evaluate: After mission/task is complete, determine effectiveness of each control in
      reducing the risk of the targeted hazard. Indicate in Block 12 Y (yes) if the control was
      effective or N (no) if the control was ineffective. For those controls which were not
      effective, determine why and what to do the next time this hazard is identified. For
      example change the control or change how the control will be implemented/supervised.
                                     NOAA SECO 10-23-2005                                      40
                                                                                                             STEP 1 IDENTIFY THE HAZARD
 NRM Cheat Sheet                                                                             Action 1:                      Action 2:                         Action 3:
                                                                                            Mission/task                      List                              List
          HAZARD SEVERITY CATEGORIES                                                         analysis                       Hazards                            Causes
I Catastrophic - Complete mission failure, death, or system loss.
II Critical – Chief mission impact, severe injury, or major system damage.                                    STEP 2 ASSESS THE RISK
III Major - Key mission impact, minor injury, or minor system damage.
IV Minor – Trivial mission impact, minor injury, or minor system damage.                                         Action 2:                   Action 3:                 Action 4:
                                                                                          Action 1:            Assess hazard               Assess mishap               Complete
V Negligible - Little mission impact, injury, or damage.
                                                                                        Assess hazard            severity                   probability               assessment
                                                                                          exposure
          HAZARD PROBABILITY CATEGORIES                                                      STEP 3 ANALYZE RISK CONTROL MEASURES
     A Frequent -   Item: occurs often. Fleet: continuous.
                   Individual: occurs often. All: continuous.                                                              Action 2:
     B Likely -     Item: occurs several times. Fleet: frequently.                           Action 1:                                                      Action 3:
                                                                                                                       Determine control
                    Individual: occurs several times. All: frequently.                    Identify control                                                Prioritize risk
                                                                                                                            effects
     C Occasional - Item: will occur. Fleet: several times.                                   options                                                    control measures
                    Individual: will occur. All: sporadic.
     D Seldom -     Item: could occur. Fleet: will occur.
                                                                                                    STEP 4 MAKE CONTROL DECISIONS
                   Individual: could occur. All: seldom.
     E Unlikely - Item: will not occur. Fleet: could occur.
                   Individual: will not occur. All: very rarely.                                                                             Action 2:
                                                                                                     Action 1:
                                                                                                                                         Make Risk Decisions
                                                                                                Select Risk Controls
                                                   Event Probability
              6       1
                                  Frequent   Likely    Occasional   Seldom   Unlikely               STEP 5 IMPLEMENT RISK CONTROLS
          5                   2

                                                                                             Action 1:                       Action 2:                          Action 3:
                  4       3         A         B           C            D       E
                                                                                          Make implemen-                     Establish                          Provide
                                                                                            tation clear                   accountability                        support
  Catastrophic            I          1         1           2           3        3
                                                                                                        STEP 6 SUPERVISE AND REVIEW
  Critical                II         1         1           2           3        4

  Major                   III        1         2           3           4        4             Action 1:                      Action 2:                         Action 3:
  Minor
                                                                                              Supervise                       Review                           Feedback
                          IV         2         3           4           4        5

  Negligible              V          2         3           4           4        5
                                                                                                                                            NRM Cheat Sheet

                                                                       NOAA SECO 10-23-2005                                                                               41
                                        NRM Cheat Sheet                                                 7 PRIMARY
        The 5 M Model                                                                                      HAZARD
                   Management                    HAZARDS ARE CAUSED
                                                                                             IDENTIFICATION TOOLS
                                                        BY ENERGY
                                               Force            Acceleration               Operations Analysis - a block
        Man                   Machine
                                               Chemical         Vibration                  diagram, flow chart, or timeline
                                               Electrical       Environmental              that describes the operation.
                    Mission
                                               Kinetic          Pressure
                                               Potential        Thermal                    Preliminary Hazard Analysis -
                                               Radiation        Humans                     an examination for sources of
                                                                                           hazards, usually related to
                     Media
                                                                  RISK CONTROL             energy.
                                                MACRO
                                                                 OPTIONS MATRIX
                                             CONTROL                                       What If Analysis - a group
                                                                         Engineer
                                         OPTIONS LIST                                      brainstorming technique. “What
                                                                          Guard
                                           Reject                                          if this happens?”
                                                                 Improve Task Design
                        ORDER OF           Avoid
                                                                    Limit Exposure
                     PRECEDENCE            Delay                                           Scenario Process - stories
                                                                 Selection of Personnel
                                          Transfer                                         describing conceivable mishaps
                                                                   Train and Educate
1.   Design for Minimum Risk               Spread                                          and consequences.
                                         Compensate                      Warn
2.   Incorporate Safety Devices
3.   Provide Warning Devices               Reduce                       Motivate           Logic Diagrams - “tree” shaped
                                                                    Reduce Effects         diagrams examining hazards in
4.   Procedures & Training
                                                                      Rehabilitate         detail: positive, negative, and
                                                                                           risk event diagrams.
                                                        THE POWER OF COMMAND
             THE INVOLVEMENT                                                               Change Analysis - compares
                   CONTINUUM                                                               changes to a baseline to
                                          Sustained consistent behavior         STRONGER   determine significance.
User Ownership                            On-going personal behavior
Co-ownership         STRONGER             Accountability actions and follow up             Cause and Effect Diagrams -
Team Member                               Follow up inquiries by phone and visits          fishbone diagram to examine
Input                                     Verbal support in staff meetings                 many causes of a mishap.
Coordination                              Sign directives                        WEAKER
Comment And Feedback
Robot                WEAKER                   NOAA SECO 10-23-2005                                                 42
NRM Cheat Sheet2
WORK AT WORKING SAFELY
Training is the key to success in managing safety in the work
environment. Attitude is also a key factor in maintaining a safe
workplace. Safety is, and always will be, a team effort. Safety
starts with each individual employee and concludes with
everyone leaving at the end of the day to rejoin their families, for
additional information on Risk Management contact:

Ben Bond, PA, CSP
Occupational Safety & Health Manager
SECO
301-713-2870 x 114
ben.bond@noaa.gov
www.seco.noaa.gov

                         NOAA SECO 10-23-2005                      43
NOAA SECO 10-23-2005   44
          NRM INTEGRATION
            WORKSHEET
• Introduction
  This worksheet is designed to support and
  enhance the application of the various tools and
  job aids developed to support the NOAA Risk
  Management (NRM) integration process. It
  serves as a checklist, worksheet, and record of
  the various steps involved in the process. Each
  of the various steps is optional and the user
  decides which elements to use or not use.

                   NOAA SECO 10-23-2005          45
        STEP 1 - IDENTIFY
    INTEGRATION OBJECTIVES
•   Conduct an assessment to detect
    organizational changes that may
    influence selection of integration
    objectives (i.e. new SUPERVISOR,
    MANAGER, increased in number of
    personnel, budget constraints, etc.). List
    potential change issues below and briefly
    assess their potential positive or negative
    impact.
                 NOAA SECO 10-23-2005        46
         STEP 1 - IDENTIFY
     INTEGRATION OBJECTIVES
       Change                          Impact

a.

b.

c.

d.

e.

                NOAA SECO 10-23-2005            47
     2. Identify possible integration
                  objectives
     a. Horizontal objectives (those designed to impact
        across the entire organization or major parts of it.
        Examples are generalized job aids or generic
        training programs.) Attempt to develop at least five
        horizontal objectives.

1.    __________________________________
2.    __________________________________
3.    __________________________________
4.    __________________________________
5.    __________________________________
                        NOAA SECO 10-23-2005                   48
     2. Identify possible integration
           objectives cont‟d.
b.   Vertical objectives (those designed to impact entirely
     or predominately on a single process or functional
     area. Examples are process redesign or specialized
     NRM training for a specific group in a single operating
     area.). Attempt to develop at least five vertical
     objectives.
       1.   _______________________________________
       2.   _______________________________________
       3.   _______________________________________
       4.   _______________________________________
       5. _______________________________________
                       NOAA SECO 10-23-2005                49
       STEP 2 - ANALYZE
   INTEGRATION OBJECTIVES
Consider using the decision matrix to assist in
  evaluating the various integration objectives.
Step 1. Tailor the matrix (see below) by
        entering the integration objectives in the
        space at the top. If necessary, use two or
        more matrix forms to accommodate all
        objectives.
Step 2. Select the assessment criteria from those
        suggested and/or add any other criteria
        you consider important. Enter these
        criteria down the left side of the matrix.
                   NOAA SECO 10-23-2005          50
          STEP 2 - ANALYZE
INTEGRATION OBJECTIVES cont’d.
Step 3. Add a weighting factor if desired. Simply
  consider the relative importance of the various
  assessment criteria and if one is about twice
  as important as another, award it twice the
  points.
Step 4. Evaluate the various objectives you have
  identified against the assessment criteria you
  have selected and award the appropriate
  points. A ten is awarded to a target that is (1)
  stronger than any other target in a given
  assessment criteria, and (2) nearly as strong
  as can be envisioned in that criteria.
                   NOAA SECO 10-23-2005          51
         STEP 2 - ANALYZE
INTEGRATION OBJECTIVES cont’d.
Step 5. When all objectives have been
  evaluated against all assessment criteria,
  total the points down each column.
  Generally, the objectives that score the
  highest are the most attractive integration
  objectives. However, REMEMBER, that
  the matrix is only a job aid and the
  decision-maker should evaluate the output
  of the matrix as one (albeit a very
  important one) factor in the overall
  decision.
                 NOAA SECO 10-23-2005       52
              EVALUATING THE OBJECTIVES
             RATE FROM 1 (LOW) TO 10 (HIGH)
 Assessment Criteria            Weight             (Enter Integration Objectives Here)
                               (Optional)

Easy to Integrate

Hot Topic

Strong Opportunity Potential

Short-term Benefits

Proven Examples to Model

Easy to Find Resources

Broad Application

Involves both Military &
Civilian


Involves the total Team

Good Knowledge Base

Good Potential Leader
Interest

                         TOTAL

                                            NOAA SECO 10-23-2005                         53
      THE STRONGEST FIVE
        OBJECTIVES ARE:
a. _____________________________________

b. _____________________________________

c. _____________________________________

d. _____________________________________

e. _____________________________________

               NOAA SECO 10-23-2005        54
        STEP 3 - DEVELOP
    INTEGRATION STRATEGIES
        AND OBJECTIVES
• Evaluate Integration Strategies. Become familiar
  with the list of 12 integration strategies. Consider
  the potential role of these strategies in
  connection with each of the stronger integration
  objectives developed in step 2. A suggested way
  of doing this is to list the strategies that seem
  best suited to each target. Then consider which
  strategy or possible combination of strategies
  will be most effective in implementing NRM in a
  given target.
                    NOAA SECO 10-23-2005            55
            STEP 3 - DEVELOP
        INTEGRATION STRATEGIES
„
         AND OBJECTIVES CONT‟D
          INTERGRATION OBJECTIVIES                   STRATEGIES

    OBJECTIVE #1


    OBJECTIVE #2




    OBJECTIVE #3




    OBJECTIVE #4


    OBJECTIVE #5



                              NOAA SECO 10-23-2005                56
   STEP 4 – SELECT THE BEST
          OBJECTIVES
After carefully evaluating the best objectives and
  the various strategies that might be applied to
  each, and taking into consideration your
  assessment of the current status of the
  organization, potential future issues, resource
  issues, etc., either make a decision regarding
  which objectives and associated strategies to
  use or prepare a recommendation to the
  appropriate decision-maker and obtain a
  decision.
                   NOAA SECO 10-23-2005              57
STEP 5 - IMPLEMENT SELECTED
  INTEGRATION OBJECTIVES
Develop an integration plan. Based on the
 objectives selected in section four above
 and on the strategies and associated key
 actions, you can develop an actual
 implementation plan using the template
 provided below. Use those elements of the
 template you find relevant and feel free to
 add other elements that you feel will be
 useful.
                NOAA SECO 10-23-2005       58
INTEGRATION PLAN TEMPLATE
                1 PREPARATORY ACTIONS
1. Objective Areas:
2. Composition of the planning team (offices, individuals,
   chief, approving authority):
3. Scope of application (consider the application scope -
   wide, narrow, etc.):
4. Timing considerations (how fast to proceed):
5. Power considerations (the degree of emphasis, degree
   of “voluntariness”):
6. Marketing plan (procedures to build support from all
   relevant parties involved):
7. The role of commander (consider using the 12
   leadership techniques from Module 2):
                      NOAA SECO 10-23-2005                   59
QUESTIONS, COMMENTS,
    DISCUSSIONS



     Risk
                    Benefit




       NOAA SECO 10-23-2005   60
THE         END
NOAA SECO 10-23-2005   61

								
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