Navy Operational Risk Management (ORM) Practice Test

The acronym 'ACE' in the context of Operational Risk Management refers to the concepts of Acceptable, Controllable, and Eliminable risks. This framework is crucial in ORM as it helps individuals and teams to categorize risks effectively based on their nature and the organization's capability to manage them.

- Acceptable refers to those risks that are within the tolerance levels of the organization, meaning they are deemed manageable and won't cause significant harm to operations or personnel.

- Controllable refers to risks that can be actively managed through established procedures, training, or equipment that can mitigate the potential negative outcomes.

- Eliminable relates to risks that can be entirely removed from operations through careful planning or avoidance strategies.

This understanding enables personnel to prioritize their focus on risks that require immediate attention, thereby improving safety and efficiency in Navy operations. Recognizing which risks are acceptable, controllable, or eliminable helps in effective decision-making and resource allocation during risk management processes.