Downloaded from https://www.everyspec.com Chapter 1 Foundations of Risk Management This chapter begins by introducing principles of risk management. It continues with a discussion of the levels of risk management and then concludes with the steps of risk management. PRINCIPLES OF RISK MANAGEMENT 1-1. Risk management is the process of identifying, assessing, and controlling risks arising from operational factors and making decisions that balance risk cost with mission benefits (JP 3-0). The Army uses risk management (RM) to help maintain combat power while ensuring mission accomplishment in current and future operations. RM applies to operations and to nonoperational activities. Note.
For more information on RM application to nonoperational activities, see DA Pam 385-30. 1-2. RM is the Army’s process for helping organizations and individuals make informed decisions to reduce or offset risk. Using this process increases operational effectiveness and the probability of mission accomplishment. It is a systematic way of identifying hazards, assessing them, and managing the associated risks. While safety-related, RM is not contained solely within the protection warfighting function. Commanders, staffs, Army leaders, Soldiers, and Army civilians integrate RM into all planning, preparing, executing, and assessing of operations.
The process applies to all types of operations, tasks, and activities. Commanders ensure first-line supervisors apply the process, where it has the greatest impact. Individuals should also use the process for off-duty activities. 1-3. RM outlines a disciplined approach to express a risk level in terms readily understood at all echelons. Except in time-constrained situations, planners complete the process in a deliberate manner— systematically applying all the steps and recording the results on the prescribed form (see appendix A). Organizations develop data and use charts, codes, and numbers to analyze probability and standardize the analysis of risk.
They use this standardization to manage risk in a logical and controlled manner over time. However, the five-step process is compatible with intuitive and experience-based decisionmaking. In time- constrained conditions, commanders, staffs, leaders, Soldiers, and civilians use judgment to apply RM steps and principles. 1-4. The principles of RM are— Integrate RM into all phases of missions and operations. Make risk decisions at the appropriate level. Accept no unnecessary risk. Apply RM cyclically and continuously. I NTEGRATE R ISK M ANAGEMENT INTO A LL P HASES OF M ISSIONS AND O PERATIONS 1-5.
Army forces must integrate RM throughout planning, preparation, execution, and assessment activities. Army units should use RM for on- and off-duty activities. Commanders must emphasize RM in planning processes; they must dedicate sufficient time and other resources to RM during planning to ensure Army forces manage risk effectively throughout all phases of missions and operations. M AKE R ISK D ECISIONS AT THE A PPROPRIATE L EVEL 1-6. A risk decision is a commander, leader, or individual’s determination to accept or not accept the risk(s) associated with an action he or she will take or will direct others to take. RM is only 14 April 2014 ATP 5-19 1-1