Operational Risk Management

OPNAVINST 3500.39C states that Operational Risk Management (ORM) is “a decision making tool used by personnel at all levels to increase effectiveness by identifying, assessing, and managing risks.  By reducing the potential for loss, the probability of a successful mission is increased.”  Using this process, Cape Henry Associates will mitigate or minimize as much of the risk as possible through the identification, assessment, and prioritization of risks. Important tasks, which must be integrated as part of the risk management process, include requirements development, systems engineering, schedule development, performance measurement, and cost estimating.

Operational Risk Management is a fundamental program management tool for effectively managing future uncertainties associated with system acquisition and sustainment. Planning a good risk management program integral to the overall program management process ensures that risks are handled at the appropriate management level. The purpose of addressing risks associated with programs is to help ensure program cost, schedule, and performance objectives are achieved at every stage in the life cycle. It also allows stakeholders to communicate the process for uncovering, determining the scope of, and managing program uncertainties. The Cape Henry Associates team of seasoned Human System Integration analysts assists our client Navy and Coast Guard Program Offices, resource sponsors, and Integrated Product Teams in effectively managing program risks during the entire process from pre-acquisition through sustainment.

Operational Risk Management uses a methodology that includes analyzing a project's risks relating to an organizations capacity to execute future missions. The two components of risk are severity and probability. Cape Henry Associates' analysts provide a risk analysis that project the likelihood of success or failure related to the system’s capacity to execute future missions as affected by the services ability to manage associated personnel, training, and maintenance. Without this thorough risk analysis, including recommendations of how to mitigate the risks, the service faces undefined and potentially significant operational deficiencies and program budget overruns.