MCO 3500.27C_FinRev_ARDB_Records_Directives

DEPARTMENT OF THE NAVY

HEADQUARTERS UNITED STATES MARINE CORPS

3000 MARINE CORPS PENTAGON

WASHINGTON, DC 20350-3000

DISTRIBUTION STATEMENT A: Approved for public release; distribution is

unlimited.

MCO 3500.27C

26 NOV 2014

MARINE CORPS ORDER 3500.27C

From: Commandant of the Marine Corps

To: Distribution List

Subj: RISK MANAGEMENT

Ref: (a) DoD Instruction 6055.1, DoD Safety and Occupational Health (SOH)

Program, 19 Aug 1998

(b) MCI ORM 1-0

(d) SECNAV M-5210.1

Encl: (1) Marine Corps Risk Management (RM)

1. Situation. The purpose of this Order is to publish policy, provide

guidance, and assign responsibility concerning the implementation and

standardization of Risk Management (RM), formerly known as Operational Risk

Management, within the Marine Corps per the references. RM is an integral

part of the decision making process for both Marine Corps military and

civilian personnel. The RM process, together with safety and force

preservation policies of reference (c), ensures maximum Marine Corps

operational readiness and mission success.

2. Cancellation. MCO 3500.27B.

3. Mission. The focus of RM is to identify and mitigate risk in all

activities, both on and off duty. Additionally, RM extends to risks

associated with human factors in the workplace, behavioral healthcare, and

behavioral lifestyles that can affect readiness. Successful implementation

of RM increases mission effectiveness while minimizing loss of both personnel

and materiel.

4. Execution

a. Commander’s Intent and Concept of Operations

(1) Commander’s Intent

(a) All Marine Corps activities and commands shall apply the RM

process described herein for planning, training, exercises, operations, and

non-operational activities to optimize mission success, operational

capability, readiness, and safety. Commands may publish or update existing

orders and standing operating procedures with command-specific RM

applications and requirements, as appropriate.

(b) All Marines and Sailors shall apply RM concepts to identify

and mitigate risks in all tasks, missions, operations, and personal

activities whether forward deployed, in garrison, or on liberty no matter how

MCO 3500.27C

26 NOV 2014

routine these events become over time. All civilian personnel shall apply RM

concepts while on duty and are highly encouraged to use these concepts while

off duty.

(2) Concept of Operations

(a) The Safety Division (SD), Headquarters Marine Corps, shall

provide policy for RM in the Marine Corps.

(b) The Inspector General of the Marine Corps shall evaluate the

effectiveness of RM implementation and the completion of initial and annual

RM training, as defined by this Order and reference (c), during inspections.

b. Subordinate Element Missions

(1) Major subordinate commands shall provide guidance as required to

subordinate commands regarding RM policy implementation.

(2) Marine Corps Combat Development Command

(a) Establish policy for RM implementation and ensure RM is an

integral part of orientation and indoctrination implemented at all points of

accession.

(b) Incorporate the RM process into individual training

standards, occupational standards, and the Marine Corps Combat Readiness

Evaluation System. Incorporate RM concepts and applications into appropriate

publications.

(d) Maintain and update RM training courses in formal schools and

courses as well as the web-based USMC RM Distance Learning Course modules, as

required.

(e) Coordinate with the Marine Corps Center for Lessons Learned

to maintain lessons learned safety products on the website as a resource in

support of unit and individual RM.

(3) Unit Commanders

(a) All leaders shall ensure risk mitigation strategies are

included in the planning and execution of all activities regardless of

complexity or familiarity. Apply the RM process to all aspects of command

operations and activities to include the following components of the RM

strategy:

1. Educate and train Marines in the RM process.

2. Provide tools and information to help Marines use and

apply RM.

3. Integrate RM into all operational and non-operational

activities both on and off duty.

4. Integrate RM when assessing behaviors that may affect

activities both on and off duty.

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26 NOV 2014

(b) Incorporate identified hazards, assessments, and controls

into briefs, notices, and written plans.

evolutions defining acceptable risk and possible contingencies for the

evolution.

(d) Elevate risk decisions through the chain of command when

unable to mitigate identified hazards to an acceptable level. The authority

to approve, as acceptable, Risk Assessment Code (RAC) 1 and 2 hazards shall

only be extended to lieutenant colonel or above level of command.

(e) Provide training every two years (biennial) on the RM process

to all unit personnel. The level of training shall be commensurate with

rank, experience, and leadership position. Training shall include material

in references (a) through (c) of this Order. Biennial training may be

accomplished by:

1. Completion of the appropriate module(s) of the USMC RM

Distance Learning Course Curriculum. The website is

https://www.marinenet.usmc.mil.

2. Classroom instruction or practical application exercises

(i.e. small group, scenario-based, etc.) led by a designated RM Instructor

(RMI).

(f) Designate in writing at least one command RMI. Consideration

should be given to rank, experience, and credibility when choosing an RMI to

ensure a robust and dynamic RM program. It is recommended commanders also

designate an Assistant RMI. The RMI and Assistant RMI should hold

significant leadership or supervisory positions within the command. RMI

qualification shall be completed prior to, or within 30 days of, designation

and can be earned by completing all of the modules of the USMC RM Distance

Learning Course Curriculum or graduating from one of the following: the U.S.

Army Combat Readiness Center Career Program (CP-12) course, the Ground Safety

for Marines course, the Aviation Safety Officer course, or the Aviation

Safety Command course. RMI/Assistant RMI duties include the following at a

minimum:

1. Ensure biennial and “as required” RM training is

conducted in the spirit and intent of this Order. This training, at a

minimum, shall include scenarios encompassing unit specific practices and

procedures as well as off duty activities.

2. As the unit’s RM authority, assist unit personnel in

conducting risk assessments.

3. Provide an RM overview for all military and civilian

personnel during the check-in process. The level of training shall be

commensurate with rank, experience, and leadership position.

4. Maintain RM lessons learned and best practices and

forward them through the chain of command for dissemination.

(g) Marines and Sailors shall document RM training appropriately

via the Training Management System. Civilian Marines who participate in RM

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26 NOV 2014

i Enclosure (1)

LOCATOR SHEET

Subj: RISK MANAGEMENT

Location: ______________________________________________________

(Indicate the location(s) of the copy(ies) of this Order.)

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26 NOV 2014

ii Enclosure (1)

RECORD OF CHANGES

Log completed change action as indicated.

Change

Number

Date of Change

Date

Entered

Signature of Person Change

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26 NOV 2014

iii Enclosure (1)

TABLE OF CONTENTS

IDENTIFICATION TITLE PAGE

Chapter 1 INTRODUCTION TO RISK MANAGEMENT (RM)...................1-1

1. RM Overview............................................1-1

2. Concept................................................1-1

3. Terms..................................................1-2

4. Principles of RM.......................................1-2

5. Levels of RM...........................................1-3

6. RM Process.............................................1-4

7. The Five Steps of the RM Process.......................1-6

Figure 1-1 Relationship between RM Levels.........................1-3

Figure 1-2 The Five Step Process..................................1-5

Table 1-1 Severity Categories....................................1-7

Table 1-2 Probability Categories.................................1-7

Figure 1-3 Basic Risk Assessment Matrix...........................1-8

Table 1-3 Criteria for Effective Controls.......................1-10

Chapter 2 TIME CRITICAL RISK MANAGEMENT (TCRM)...................2-1

1. TCRM Overview..........................................2-1

2. Concept................................................2-1

3. Discussion.............................................2-1

4. Process................................................2-3

5. Summary................................................2-4

Figure 2-1 TCRM Link to the 5-Step RM Process.....................2-2

Chapter 3 RM GLOSSARY............................................3-1

1. Abbreviations and Acronyms.............................3-1

2. Terms and Definitions..................................3-1

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1-1 Enclosure (1)

Marine Corps Risk Management (RM)

Chapter 1

Introduction to Risk Management (RM)

1. RM Overview. This chapter provides an explanation of the concepts,

principles, levels, and process of RM. It outlines the foundation upon which

to apply and integrate RM into tasks, missions, and operations both on and

off duty.

2. Concept

a. RM Fundamentals. Force preservation does not have a single solution.

However, every effort should be made to prevent a situation that will degrade

mission capability rather than planning to deal with the situation after it

occurs. Risk mitigation is central to the idea of readiness and must not be

an afterthought in actions during combat, in training, and in garrison. RM

is one of the best means available to eliminate senseless and needless loss

of life, injury, and materiel damage. Active participation of every Marine

in the RM process of identifying, assessing, and controlling risks arising

from factors experienced on a daily basis such as uncertainty, ambiguity, and

change will allow for informed decisions. This process is one in a range of

tools to be used by personnel at all levels for minimizing risk to an

acceptable level commensurate with completing the task at hand or

accomplishing the mission.

b. Inherent Risk. Risk is inherent in every phase of tasking, missions,

and operations due to today’s complex and dynamic environment. Additionally,

off duty activities present their own set of hazards and risks requiring the

application of RM processes and principles. As hazards and risk are present

both on and off duty, it is incumbent upon all Marines, both military and

civilian, to understand how to assess and manage risk to achieve mission

success and preserve combat readiness.

c. Key Aspects of RM

(1) RM enhances readiness by:

(a) Enhancing task or mission accomplishment by increasing the

probability of success.

(b) Minimizing risk to acceptable levels commensurate with the

benefit or value of mission or task accomplishment while providing a method

to effectively manage resources.

reasoned, and repeatable process.

(d) Providing a systematic structure to perform risk assessments.

(e) Providing improved confidence for individuals to make

informed risk decisions. Adequate risk analysis provides a clearer picture

of the hazards and of unit capabilities.

(f) Preserving personnel and materiel by avoiding unnecessary

risk, thus reducing mishaps and their associated costs.

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1-2 Enclosure (1)

(g) Providing an adaptive process for the continuous feedback

through the planning, preparation, and execution phases of any evolution.

(h) Identifying feasible and effective control measures,

particularly where specific standards do not exist.

(2) RM does not:

(a) Inhibit flexibility, initiative, or accountability.

(b) Remove risk altogether or support a “zero defect” mindset.

tactics, techniques, and procedures.

(d) Sanction or justify violating orders or the law.

3. Terms. See Chapter 3.

4. Principles of RM. There are four basic principles that provide the

foundation for RM and the framework for implementing the RM process.

a. Accept Risk When Benefits Outweigh The Cost. Our Marine Corps

tradition is built upon principles of seizing the initiative and taking

decisive action. The goal of RM is not to eliminate risk, but to manage the

risk so the mission can be accomplished with the minimum amount of loss. The

process of weighing risks against the benefits and value of the task or

mission helps maximize success. Balancing costs and benefits is a subjective

process. Therefore, personnel with knowledge and experience of the mission

or task must be engaged when making risk decisions.

b. Accept No Unnecessary Risk. An unnecessary risk is any risk that, if

taken, will not contribute meaningfully to task or mission accomplishment or

will needlessly jeopardize personnel or materiel. Risk is managed through

relentless training, awareness of the risk being confronted, and a clear-eyed

understanding of the mission at hand. Training and the confidence derived

from it will directly result in increased performance and a better control of

those risks that are an inescapable part of daily existence. The acceptance

of risk does not equate to the imprudent willingness to gamble.

Additionally, if all detectable hazards have not been identified then

unnecessary risks are being accepted. The RM process, in conjunction with

sound safety principles, identifies hazards that might otherwise go

unidentified and provides tools to reduce or offset risk. End state: take

only risks that are necessary to accomplish the task, activity, or mission.

c. Anticipate And Manage Risk By Planning. Integrating RM into planning

at all levels, and as early as possible, provides the greatest opportunity to

make well-informed risk decisions and to implement effective risk controls.

This engaged approach enhances the overall effectiveness of RM by reducing

mishaps, injuries, and costs. Hazards and controls that have been identified

during reconnaissance and preplanning should be in the operations order.

d. Make Risk Decisions At The Right Level. RM decisions are made by the

leader directly responsible for the operation. While anyone can make a risk

decision, the appropriate decision level should reside whereby the leader can

make decisions to accept, eliminate, or reduce the risk. Prudence,

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1-3 Enclosure (1)

experience, judgment, intuition, and situational awareness of leaders

directly involved in the planning and execution of the mission are the

critical elements in making effective RM decisions. When leaders responsible

for executing a mission determine that the risk associated with that mission

cannot be controlled at their level, or goes beyond the commander’s stated

intent, the risk decision shall be elevated within their chain of command to

the first staff noncommissioned officer or officer within the unit. If

unable to mitigate the risk at the unit level, the risk decision shall be

elevated to the next commander in the chain of command.

5. Levels of RM. The RM process is applied on three levels: in-depth,

deliberate, and time critical. While it is preferable to perform a

deliberate or in-depth RM process for all evolutions, adequate time and

resources will not always be available. The basic factor that differentiates

each level is the amount of time available for the preparation and planning

of tasks or missions. One of the objectives of RM training is to develop

sufficient proficiency in applying the process so RM becomes an automatic or

intuitive part of our decision making methodology. Figure 1-1 illustrates

the three levels of the RM process and how they are related to each other.

Note that there is no defined line when one level stops and the next begins.

Additionally, this figure illustrates how RM controls are integrated into

planning and execution.

Figure 1-1. Relationship between RM Levels

a. In-depth. The in-depth level refers to situations when available

time for planning is not a limiting factor and involves a very thorough risk

assessment. Research of available tactical, engineering, and safety data,

use of diagram and analysis tools, trends, formal testing, or long term

tracking of the hazards associated with the operation or activity (sometimes

with the assistance from technical experts) are some of the tools used to

identify and assess hazards at this level. The in-depth level of RM is used

to more thoroughly study the hazards and associated risk in a complex

Mission &

Task

Success

Controls become resources during execution

•

Charts

•

Weapon Sys / Aircraft

(Systems Safety)

•

Orders/Dir

(MCO),

•

NATOPS, 3M

•

Equipment

(Design,

New Technology)

•

Formal Training

•

Ops Planning/R2P2

•

Mission Briefs

•

Pre

Ex / OPORD

•

SOPs

•

Standing Orders /

’

Guidance

•

On the Job Training

•

Equipment

(PPE)

•

Team / Crew

•

Mission Execution

Checklist

•

Change Management

(Environment, Mission,

Emergency Procedures,

Crew Change)

•

Equipment / System

Degradation

Strategic

Tactical

Time Available

for Planning

Limited / No Time

for Planning

Depth

Deliberate

Time Critical

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1-4 Enclosure (1)

operation or system, or one in which the hazards are not well understood.

Examples of in-depth applications include long-term planning of complex

operations; introduction of new equipment, materials, and missions;

development of tactics and training curricula; and major system overhaul or

repair.

b. Deliberate. The deliberate level refers to situations when there is

ample time to apply the RM process to the mission planning evolution. This

level uses primarily experienced personnel and brainstorming to identify

hazards, review mishap trends, and develop controls. It is, therefore, most

effective when done in a group. The USMC Rapid Response Planning Process

(R2P2) is a good example of RM application integrated at the deliberate

level. Other examples of deliberate applications include planning of

upcoming operations; review of standard operating, maintenance, or training

procedures; and the development of damage control and disaster/emergency

response plans.

c. Time Critical. This is the level at which personnel operate on a

daily basis both on and off duty. The time critical level is the normal RM

level used during the execution phase of training or operations as well as in

planning during crisis response scenarios. At this level, there is little or

no time to make a plan resulting in an “on the spot” mental or verbal review

of the situation. Since time is limited, the application of the formal RM

process cannot be practically applied. As such, to facilitate use of RM at

the time critical level, personnel are encouraged to use the Time Critical

Risk Management (TCRM) ABCD Model as a tool to successfully mitigate time

compressed decision making. The TCRM ABCD Model is described in detail in

Chapter 2.

6. RM Process

a. Overview. The RM process consists of five basic steps and is a

systematic, continuous, and repeatable approach in the decision making

process. Figure 1-2 illustrates the five-step RM process. The first two

steps encompass the risk assessment portion of RM providing enhanced

awareness and understanding of a given situation. The remaining three steps

provide actions to either eliminate the hazard or mitigate the risk involved

in the task, activity, or mission. The five basic steps consist of the

following:

(1) Identify the hazards;

(2) Assess the hazards;

(3) Make risk decisions;

(4) Implement controls;

(5) Supervise.

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1-5 Enclosure (1)

Figure 1-2. The Five Step Process

b. Process Application Guidelines. The following guidelines are

provided to gain the maximum benefit and desired effect of the RM process.

(1) Apply the process in sequence. Each element is a building block

for the next step.

(2) Maintain balance in the process. Every step and element of the

process is important and should be afforded due diligence. The objective is

to assess the time and resources available for RM and to allocate them

accordingly in a manner most likely to produce the best result.

(3) Apply the process as a cycle. The RM process is not a one-way

cycle (refer to Figure 1-2). The process contains elements requiring review

and feedback allowing for a check and balance as well as the flexibility to

make adjustments as the situation changes.

(4) Involve personnel. The RM process is effective only if the

personnel exposed to the risks, and those who possess the subject matter

expertise in the task or mission, are fully involved. These are the

stakeholders who have a vested interest and will ensure the process is sound.

(5) Document the process. Documenting the results of the RM

assessment assists the effort to organize ideas, to identify courses of

action, and to brief and debrief the event. Documentation provides a valid

reference to evaluate progress during the execution phase and a record for

Assess Probability

Complete Risk

Assessment

Clear

Monitor

Review

Feedback

Analyze

Mission

List

Hazards

Determine Hazard

Root Causes

Identify the Hazards

Assess the

Hazards

Make Risk

Decisions

Implement

Controls

Supervise

Missions

Make Risk Decisions

Provide Support

Lessons

Learned

New

Hazards

Determine

Residual

Risk

Assess Probability

Complete Risk

Assessment

Identify and Assess

Risk Control

Options

Make Implementation

Establish Accountability

Monitor

Review

Feedback

Analyze

Mission

List

Hazards

Determine Hazard

Root Causes

Identify the Hazards

Assess the

Hazards

Make Risk

Decisions

RM PROCESS CYCLE

Implement

Controls

Supervise

Missions

Lessons

Learned

New

Hazards

Determine

Residual

Risk

Assess Severity

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1-6 Enclosure (1)

future use capitalizing on lessons learned to improve performance and

minimize repeat shortcomings.

7. The Five Steps of the RM Process

a. Identify Hazards (Step 1). A hazard is defined as any condition with

the potential to negatively impact the task or mission. Hazards can also

cause property damage, injury to personnel, or death, which highlights the

importance of hazard identification as the foundation of the RM process.

Personnel need to ensure a larger portion of available time is allotted to

this step due to the fact that, if a hazard is not identified, it cannot be

controlled. There are three actions to be completed in this step.

(1) Conduct an Operational Analysis. Begin with an outline or chart

listing the major steps in the operation. Review plans, orders, and

supporting documentation pertaining to the mission or tasking and the

requirements needed for mission success. Next, break down the task or

mission into manageable phases in chronological order providing a clear

picture of expectations and potential sources of risk.

(2) Conduct a Preliminary Hazard Analysis (PHA). With the phases

broken down into manageable events in sequential order, each event is

reviewed for associated hazards. During the PHA, ensure a list is generated

identifying these hazards for each event. Brainstorming and asking “what if”

questions regarding what could go wrong throughout the task or mission could

uncover additional hazards.

(3) Determine Root Causes of Hazards. For each identified hazard,

make a list of the associated causes with emphasis on clearly identifying the

root cause. Hazards may often have multiple causes, but the root cause is

the first link in the safety chain of events potentially leading to mission

degradation. With causes identified, risk controls can be applied to

mitigate or minimize risk.

b. Assess Hazards (Step 2). For each hazard identified, determine the

associated degree of risk in terms of probability and severity. The result

of the risk assessment is a prioritized list of hazards ensuring controls are

first identified for the most serious threat to task or mission success.

(1) Determine Severity. This is an assessment of the worst credible

consequence that can occur as a result of a hazard. Severity is defined by

potential degree of injury, illness, property damage, loss of assets, or

effect on task or mission. Consideration must be given to the number of

personnel and resources potentially exposed to a hazard when determining

potential severity. The greater the number of resources exposed to a hazard,

the greater the severity. Additionally, the combination of two or more

hazards may increase the overall level of risk. Hazard severity categories

are assigned as Roman numerals according to the criteria in Table 1-1.

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1-7 Enclosure (1)

Category

Description

Likely to occur immediately or within a short period of time.

Expected to occur frequently to an individual item or person

Expected to occur continuously over a service life for a fleet, inventory of

items, or group

Probably will occur in time

Expected to occur several times to an individual item or person

Expected to occur frequently over a service life for a fleet, inventory of

items or group.

May occur in time

Can reasonably be expected to occur sometime to an individual item or person

Can reasonably be expected to occur several times over a service life for a

fleet, inventory of items, or group

Unlikely to occur, but not impossible.

Table 1-2. Probability Categories

(3) Assign the Risk Assessment Code (RAC). The RAC is an expression

of risk that combines the elements of hazard severity and mishap probability.

The RAC is a level of risk for each hazard expressed as a single Arabic

number as portrayed in the Basic Risk Assessment Matrix in Figure 1-3.

Although not required, the matrix is helpful in identifying the RAC and in

determining hazard abatement priorities. In some cases, the worst credible

consequence of a hazard may not correspond to the highest RAC for that

hazard. For example, one hazard may have two potential consequences. The

severity of the worst consequence (I) may be unlikely (D), resulting in a RAC

of 3. The severity of the lesser consequence (II) may be probable (B),

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1-8 Enclosure (1)

resulting in a RAC of 2. Therefore, it is important to consider less severe

consequences of a hazard if they are more likely than the worst credible

consequence since this combination may present a greater overall risk.

Risk Assessment Matrix

Probability

A B C D

SEVERITY

I 1 1 2 3

II 1 2 3 4

III 2 3 4 5

IV 3 4 5 5

Risk Assessment Codes

1-Critical 2-Serious 3-Moderate 4-Minor 5-Negligible

Figure 1-3. Basic Risk Assessment Matrix

(4) Risk Assessment Pitfalls. The following pitfalls should be

avoided during the assessment.

(a) Over optimism – not being totally honest or not looking for

root causes.

(b) Misrepresentation – individual perspective may distort the

data.

possibility.

(d) Indiscrimination – all data is given equal weight.

(e) Prejudice – subjective or hidden agendas are used vice facts.

(f) Inaccuracy – bad or misunderstood data nullify accurate risk

assessment.

(g) Enumeration – difficulty in assigning a numerical value to

human behavior.

c. Make Risk Decisions (Step 3). Step 3 is accomplished in two sub-

steps in order to make informed risk decisions: identifying and assessing

risk control options and ultimately making risk decisions.

(1) Identify and Assess Risk Control Options. Starting with the most

serious hazard, develop one or more control options that will either avoid

the hazard or reduce the risk to an acceptable level consistent with task or

mission accomplishment.

(a) There are myriad control options which can either reduce risk

or avoid it altogether. These options include:

1. Reject the risk. If overall risk exceeds the benefit,

then do not take the risk. This is a valid option when you do not have the

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1-9 Enclosure (1)

authority to apply proper or necessary controls and ensure risk is elevated

to the proper level.

2. Avoid the Risk. It may be possible to avoid specific

risks altogether or by conducting the task or mission in a different way. Be

aware that conducting a mission by an alternate means may present new hazards

to be considered.

3. Delay an Action. If there is not a hard timeline or

other benefit to a quick accomplishment of a task or mission, it may be

prudent to reduce the risk by delaying the action until favorable conditions

present themselves.

4. Transfer the Risk. Risk may be reduced by transferring

all or some portion of a particular task or mission. Transferring risk to

another individual, unit, or platform that is better positioned to face the

risk decreases the probability or severity of the risk to the total force.

5. Compensate for the Risk. Compensating for potential

losses by assigning redundant capabilities ensures the success of critical

tasks or missions.

(b) Types of Controls. Controls can take many forms but they

fall into three basic categories:

1. Engineering Controls. These are controls that use

engineering methods to reduce risks by design, material selection, or

substitution when technically or economically feasible. An example is using

an extension rod for cleaning rather than climbing a ladder.

2. Administrative Controls. These are controls that reduce

risk through specific administrative actions such as providing suitable

warnings, markings, placards, signs, and notices; establishing written

policies, programs, instructions, and standard operating procedures; training

personnel to recognize hazards and take appropriate precautionary measures;

and limiting the exposure to a hazard. An example is limiting the number of

alcohol beverages you consume.

3. Physical Controls. These are controls that take the form

of barriers or guards to warn individuals and units that a hazard exists.

Additionally, personal protective equipment (PPE) falls into this category.

This is the least desirable control type to use. This control should be used

only after engineering and administrative controls have been fully

implemented. An example is wearing body armor and Kevlar helmets while

traveling on a main supply route.

Controls. Examples of criteria for effective control options are listed in

Table 1-3.

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Control

Criteria

Remarks

Suitability

Control removes the threat or mitigates (reduces) the risk to an acceptable

level.

Feasibility

Has the capability to implement the control.

Acceptability

Benefit or value gained by implementing the control justifies the cost in

resources and time.

Explicitness

Clearly specifies who, what, where, when, why, and how each control is to be

used.

Support

Adequate personnel, equipment, supplies, and facilities necessary to implement

a suitable control are available.

Standards

Guidance and procedures for implementing a control are clear, practical, and

specific.

Training

Knowledge and skills are adequate to implement a control.

Leadership

Leaders are ready, willing, and able to enforce standards required to

implement a control.

Individual

Individual personnel are sufficiently self-disciplined to implement a control.

Table 1-3. Criteria for Effective Controls

(2) Make Risk Decisions. With selected controls in place, decide if

the residual risk is acceptable and the benefit outweighs the risk. This

decision must be made at the right level and by the appropriate individual

who can balance the risk against the task or mission and its potential

benefit. If it is determined that the risk level is too high, then the

development of additional controls, modification of the plan, or rejection of

the course of action becomes necessary. Additionally, if risk outweighs the

benefit or if assistance is required to implement controls, communication

with higher authority in the chain of command is recommended.

d. Implement Controls (Step 4). The critical check for this step is to

ensure that controls are converted into clear, simple execution orders

understood at all levels. This requires that the plan is clearly

communicated to all involved personnel, accountability is established, and

the requisite support is provided.

e. Supervise (Step 5). Supervision involves conducting follow-up

evaluations of the controls to ensure they remain in place and have the

desired effect. Engaged supervision includes three basic actions:

monitoring the effectiveness in the implementation of risk controls;

conducting a continuous systematic review determining the need for further

assessment of all or a portion of the task or mission due to unanticipated

change; and ensuring a feedback system is established for capturing lessons

learned, and identifying any new hazards that may arise or subsequent

adjustments needed to previously established controls.

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Marine Corps Risk Management (RM)

Chapter 2

Time Critical Risk Management (TCRM)

1. TCRM Overview. This chapter provides an explanation of Time Critical

Risk Management (TCRM) concepts and fundamentals necessary for an

understanding of the ABCD Model and its use as a personal RM tool.

2. Concept. TCRM refers to applying RM at the point of commencing or during

execution of a task or mission when the methodology of applying the

deliberate five step process has proven to be impractical. It is in the

execution of the task or mission, where time and resources are most limited,

that we must learn as an individual and organization to be proactive and

responsive to ensure mission success. TCRM consists of the easy to remember

mnemonic ABCD:

A – Assess the situation

B – Balance your resources

C – Communicate to others

D – Do and Debrief the event

3. Discussion

a. Experience is the result of all learning events. Therefore, everyone

should have some experience upon which to draw when responding to an event or

stimulus. The role of leadership is to marshal and coordinate the experience

from all personnel involved in a task or mission. The ABCD Model establishes

a structure for individuals, teams, squads, or crews to learn new or complex

behaviors and skills or to gain understanding. Using the ABCD Model in a

personal or professional application daily will result in deep memory of

those learned qualities. When an individual executes a task, they have an

expectation of a response consistent with their experience. Likewise,

leadership and other teammates or crew will have an expectation of a response

consistent with their experience. By recalling and communicating with the

same ABCD Model, the ability to match a previous task or mission to a new

experience provides uniform and consistent responses.

b. The ABCD Model provides common language and structure for a measured

response when an individual, team, or crew is executing a routine task or

when they are under duress from a more complex situation. These situations

can range from additive conditions, time compression, personnel factors, or

task loading. Training to the ABCD Model will embed a set of patterns that

will help personnel recognize and recall a set of actions to counter risk

even when distracted. This simple mnemonic provides individuals with a means

to evaluate risks and formulate mitigation strategies on-the-run and can

easily be applied in both on and off duty situations.

c. The nature of TCRM decisions includes an understanding that:

(1) Using the ABCD Model daily creates a habit and trains the brain

to continue thinking under less than optimal conditions, duress, or stress.

(a) The model is designed to assist you when:

1. Working in a dynamic environment.

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2. Monitoring a static or routine situation to capture

errors.

3. Making a decision with partial information.

(b) In all three situations, it is necessary to develop habits

that trigger the TCRM process to: Assess the situation; Balance your

resources; Communicate to others; and Do and Debrief the event.

Assess, Balance, Communicate, Do and Debrief as necessary. An added benefit

and value of the ABCD Model is the continuous improvement of skills and

knowledge which occurs with self-assessment.

(2) Time critical decision making requires a unique set of skills

which must be practiced.

(3) TCRM relies on the decision maker’s previous experience,

training, and availability to recall resources from in-depth or deliberate

RM.

(4) Time critical decisions are based on pattern matching to past

training and experience and the recall of resources in the ABCD Model format.

(5) Standardizing the communication structure in a time critical

situation reduces conflicts and errors, and it improves the ability to manage

risk and resources.

Figure 2-1. TCRM Link to the 5-Step RM Process

TCRM Process

and Mnemonic

A – Assess the situation

B – Balance your resources

C – Communicate to others

D – Do and Debrief the event

5-Step Deliberate and

In-depth Process

• Identify Hazards

• Assess Hazards

• Make Risk

Decisions

• Implement Controls

• Supervise

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4. Process. The ABCD Model is not a replacement for the 5-step RM process

or a different process of RM. It is the practical application of the 5-step

process in an environment when time is limited and we are most susceptible to

risk. Figure 2-1 identifies the relationship between the 5-step RM process

and TCRM using the ABCD Model. The following breakdown explains each letter

and expected action.

a. Assess the Situation: The “A” in the mnemonic combines the first two

steps of the 5-step RM process. In a real-time situation, it is essential

for individuals to consider the event in which they are engaged and choose

the appropriate resources or controls to meet the hazards they identify. In

a time critical situation, an assessment of the situation requires an

accurate perception of what is happening in a relatively short time and

projecting its effect. In other words, maintaining good situational

awareness (SA) is key. In TCRM, where there is limited time to assess

hazards, it is an individual’s ability to quickly and effectively comprehend

the situation and apply appropriate, available resources that can mean the

difference between success and failure.

b. Balance Resources. The “B” in the mnemonic is specifically tied to

making risk decisions (step 3 of the five step process) to mitigate risks.

After assessing the situation, personnel must consider using the resources

created for the task or mission. Thorough planning prior to an event will

increase the availability of the appropriate resources to effectively

mitigate hazards. For example, an understanding of the task or mission,

proper training, PPE use, and recognition of personal limitations are all

essential aspects of balancing resources.

c. Communicate to Others. Clear, concise, two-way communication is

essential for effective mission execution. “C” is to remind us to explicitly

communicate during the event, and it is tied to all steps of the 5-step

process. Maintaining good SA of additive conditions, task loading, and crew

factors is critical to communication because an individual’s perception and

communication skills deteriorate as they lose SA. As stress increases or

events become more time constrained, communication tends to become limited or

non-existent. Individuals who understand this relationship are better able

to adjust and mitigate additional risk when they recognize a loss of SA.

Although communicating intentions works best when multiple individuals are

involved in the event, situations may occur where individuals must weigh

decisions on their own. To insure positive and effective communications, it

is critical that a continual internal assessment be conducted by asking

relevant questions such as, “Who needs to know about the situation?”, “Can

this be done differently?”, or “Who can help or assist?”

d. Do and Debrief. The “D” is italicized to emphasize the two parts:

Do and Debrief. This mnemonic is tied to steps four and five of the 5-step

process. Do the task or mission. However, to be successful in the event,

the individual must select and use the appropriate resources while adjusting

actions as required ensuring event success. A vital key to the process is

ensuring that the feedback loop or “Debrief” aspect of the “D” is performed.

It is beneficial for individuals to follow through and complete the ABCD loop

by identifying what worked and what did not and to ensure lessons learned are

disseminated. Debriefs will improve performance and mitigate risks in future

activities. They are essential in completing the ABCD loop. To ensure

future activities are improved and risks are reduced, ask questions during

the debrief such as, “Was our assessment accurate?”, “Were we lucky?”, “How

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well did we use our resources?”, “Was communication effective?”, and “What

can we do to improve events in the future?”

5. Summary. The practical use of the ABCD Model to assist individuals

during TCRM and decision making will sustain a responsive capability to

effectively meet personal challenges or mission contingencies now and in the

future.

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Marine Corps Risk Management (RM)

Chapter 3

RM Glossary

1. Abbreviations and Acronyms

RM Risk Management

RMI Risk Management Instructor

PHA Preliminary Hazard Analysis

PPE Personal Protective Equipment

RAC Risk Assessment Code

R2P2 Rapid Response Planning Process

SA Situational Awareness

SD Safety Division, Headquarters Marine Corps

SOP Standard Operating Procedures

TCRM Time Critical Risk Management

2. Terms and Definitions. The definitions provided are applicable in

context with RM.

ABCD. The mnemonic for the four actions of Time Critical Risk Management

as represented in Chapter 2.

Acceptable Risk. The portion of identified risk that is allowed to

persist during the task or mission.

Additive Condition. Refers to all items that compete for an individual

or crew’s attention during the execution of a task or mission. Examples

include equipment malfunctions, change in weather, multiple players,

unpredictable information, and change to the mission. Additive conditions

may increase task loading or uncertainty and lead to distraction or

channelized focus.

Brainstorming. This technique guides a group in an interactive exchange

of ideas deferring judgment until the end of the session. It is a good way

to quickly generate many diverse ideas. This technique is particularly

effective when participants feel free to offer their ideas without fear of

criticism.

Consequential Error. An error that leads to undesired consequences to

property, personnel, or mission (e.g., mishap, personal injury, mission

failure, etc.).

Controls. Actions taken or measures put in place to eliminate a hazard

or reduce the associated identified risk. The three types of controls are

engineering controls, administrative controls, and physical controls.

Human Factors. Environmental, organizational, and job factors and human

and individual characteristics which influence behavior in a way which can

affect health and safety. This includes such things as attitudes,

personalities, level of training, experience, fatigue, and physiological

factors. Human factors which negatively affect the capabilities of the

individual, crew, or team can increase the potential for errors.

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Exposure. An expression that considers the frequency, length of time,

and percentage of people or assets subjected to a hazard. Exposure is a

component of risk, but is not directly used to assign a level of risk.

Rather, it is a consideration in determining probability and severity.

Hazard. Any real or potential condition that can cause injury, illness,

or death to personnel; damage to or loss of equipment or property;

degradation of mission capability or impact to mission accomplishment; or

damage to the environment. (Synonymous with the term “threat.”)

Mishap. An unplanned event or series of events resulting in death,

injury, occupational illness; damage to or loss of equipment or property; or

damage to the environment.

Operational Analysis. A chronological or sequential list of the major

events or elements in a task or mission. This is the complete picture of

what is expected to happen and assures all elements of a mission or task are

evaluated for all potential hazards.

Risk Management (RM). A process that assists organizations and

individuals in making informed risk decisions in order to reduce or offset

risk, thereby increasing operational effectiveness and the probability of

mission success. It is a systematic, cyclical process of identifying hazards

and assessing and controlling the associated risks. The process is

applicable across the spectrum of tasks and missions, both on and off duty.

RM Instructor. Designated unit level individual, qualified in accordance

with this Order, who is responsible for implementing risk manage principles,

concepts, and policy within the unit.

Preliminary Hazard Analysis (PHA). A means to create an initial list of

hazards that may exist in a task or mission. This builds on the operational

analysis and entails listing hazards and associated causes.

Probability. A measure of the likelihood that a potential consequence

will occur.

Residual Risk. Risk remaining after controls have been identified and

selected.

Resource. In general, a resource is something that can be used to

develop controls and includes the following: time, money, people, or

equipment. With respect to TCRM, a resource is something used to prevent

errors, speed up decision making, or improve team coordination. Resources

are typically developed as controls at the in-depth or deliberate levels of

risk management and are broadly grouped into the following categories:

policies, procedures, and routines; checklists; automation; briefings and

external resources; and knowledge, skills, and techniques.

Risk. An expression of possible loss, adverse outcome or negative

consequence; such as injury, illness in terms of probability and severity.

Risk Assessment. A structured process to identify and assess hazards.

Risk Assessment results in an expression of potential harm, described in

terms of severity, probability, and exposure to hazards known. It is

accomplished in the first two steps of the RM process.

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Risk Assessment Code (RAC). An expression of the risk associated with a

hazard that combines its severity and probability into a single Arabic

numeral which can be used to help determine hazard abatement priorities.

This is typically accomplished through risk assessment using a risk

assessment matrix. The basic RACs are 1-Critical, 2-Serious, 3-Moderate, 4-

Minor, and 5-Negligible.

Risk Decision. The decision to accept or not accept the risk(s)

associated with an action made by the commander, leader, or individual

responsible for performing that action.

Root Cause. Any basic cause that was not in turn a result of underlying

causes. The root cause is the depth in the mishap chain of events where an

intervention could reasonably be implemented to change performance and

prevent an undesirable outcome. The analysis of a hazard may identify

multiple causes; however, applying controls to the root cause is ultimately

more effective than merely addressing an intermediate cause.

Severity. An assessment of the potential consequence intensity that can

occur as a result of exposure to a hazard. It is defined by the degree of

injury, illness, property damage, loss of asset (time, money, personnel), or

task or mission impairing factors. When analyzing risk, it is based on the

worst credible outcome.

Task Loading. The number of tasks to complete given a set period of

time. Higher task loading increases the potential for error. Task loading

can be reduced by either reducing the number of tasks or taking more time.

Threat. See hazard. With respect to RM, threat and hazard are

considered synonymous.

Unnecessary Risk. The risk, when measured verses the benefit or value of

the task or mission, that cannot be tolerated and must be eliminated or

controlled.

Zero defect. A mindset whereby no mistakes are acceptable at whatever

the cost. This mentality does not promote mission flexibility, adaptability,

or improvisation, but rather mission stagnation for fear of repercussion if a

mistake is made.