What is the primary goal of Operational Risk Management (ORM)?

The primary goal of Operational Risk Management (ORM) is to identify and manage hazards that could impact an organization's operations. It involves a systematic process that helps to recognize potential risks and assess their likelihood and impact. By evaluating these risks, organizations can implement proactive measures to mitigate them, thereby safeguarding their assets, personnel, and overall operational effectiveness.

Identifying hazards is crucial because it allows organizations to understand the specific risks they face and take appropriate action to manage them. This process does not aim to eliminate all risks completely, as this is often impractical. Instead, ORM focuses on managing risks to an acceptable level, which is fundamental to maintaining operational resilience.

While training personnel on risk assessment and fostering a risk-tolerant culture may support ORM efforts, the core focus remains on the identification and management of hazards within the operational environment.