Composite Risk Management
Composite Risk Management (CRM) is a decision-making process used to mitigate risks associated with all hazards that have the potential to injure or kill personnel, damage or destroy equipment, or otherwise impact mission effectiveness. The primary premise of CRM is that it does not matter where or how loss occurs because the result is the same - decreased mission effectiveness. The guiding principles of CRM are:
CRM is a decision-making tool to assist the commander, leader, or individual in identifying, assessing, and controlling risks to make informed decisions that balance risk costs (losses) against mission benefits (potential gains).
Composite Risk Management Steps
CRM is a five-step process:
Steps 1 and 2 are assessment steps, and Steps 3 through 5 are management steps.
When the CRM is overlaid with the troop-leading procedures, the result is as shown in Figure N-1.
To maintain continuity with mission tasks and requirements, it is necessary to track the CRM process in a standardized manner. Many tools are available that can be tailored to portray CRM information to suit a particular mission, situation, operation, or event. When time and situation allow, the Army standard CRM worksheet (Department of the Army Form 7566, Composite Risk Management Worksheet) or an electronic version will be used to document the CRM process.
Hazard: A condition with the potential to cause injury, illness, or death of personnel; damage to or loss of equipment or property; or mission degradation. A hazard may also be a situation or event that can result in degradation of capabilities or mission failure. Hazards exist in all environments - combat operations, stability operations, base support operations, training, garrison activities, and off-duty activities.
Danger: Exposure or vulnerability to harm or risk, the balance between the chance or probability of a hazardous incident, and the result of the hazardous incident.
Risk: Probability and severity of loss linked to hazards.
Risk management: The process of identifying, assessing, and controlling risks arising from operational factors and making decisions that balance risk cost with mission benefits.
Field Manual 5-19, Composite Risk Management, Department of the Army, August 2006.