If a loss of gyro is reported, what is the proper course of action for the OOD?

When a loss of gyro is reported, steering by the magnetic compass is the appropriate course of action. The gyrocompass is typically used for navigation as it provides stable and accurate directional information. However, when it fails, the magnetic compass serves as a reliable backup for steering. Utilizing the magnetic compass allows the Officer of the Deck (OOD) to maintain the vessel's course, which is essential for safe navigation, especially in potentially hazardous situations or busy waterways.

While other actions, such as engaging emergency procedures, calling for a full crew muster, or increasing speed, might seem relevant in a broader context of responding to equipment failures, the immediate focus must be on maintaining control over the vessel. Therefore, referring to the magnetic compass is the most logical step to ensure continued navigation and safety until the situation can be assessed further.