What does the "Red, Yellow, Green" system in ORM signify?

The "Red, Yellow, Green" system in Operational Risk Management (ORM) is a framework used to categorize risks based on their severity and potential impact. This system simplifies the assessment process, allowing personnel to quickly identify the nature and level of risk associated with a particular operation or task.

In this context, the colors represent different levels of risk:

• Green indicates low risk, suggesting that operations can proceed safely with minimal concern.
• Yellow signifies moderate risk, which requires careful consideration and possibly the implementation of additional controls.
• Red denotes high risk, indicating that the potential for harm or loss is significant, and further action is necessary to mitigate these risks before proceeding.

By using this color-coded system, ORM helps ensure that all personnel can uniformly assess risk levels and take appropriate actions to manage those risks effectively. This helps to promote a safer operational environment and guides decision-making processes throughout Navy operations.