How are risks classified in ORM?

In Navy Operational Risk Management (ORM), risks are classified as acceptable, unacceptable, or significant. This classification helps personnel evaluate the level of risk associated with a particular operation or activity, allowing for informed decision-making regarding risk management strategies.

Acceptable risks are those that can be tolerated in the pursuit of mission objectives, meaning that the benefits outweigh the potential for negative outcomes. Unacceptable risks, on the other hand, present a clear danger that cannot be justified, and measures must be taken to mitigate or eliminate these risks before proceeding. Significant risks fall into a category that requires careful management and controls to mitigate their impact, as they could lead to serious consequences if not addressed properly.

Other classifications, such as categorizing risks as controllable or uncontrollable, or differentiating between immediate, short-term, or long-term risks, do not align with the specific framework used in ORM. The focus on acceptable, unacceptable, and significant risks provides clear guidance for Navy personnel, fostering a proactive approach to risk assessment and management.