Podcast
Questions and Answers
What is the primary goal of the Operational Risk Management process?
What is the primary goal of the Operational Risk Management process?
During which step of the Operational Risk Management process is the degree of risk evaluated?
During which step of the Operational Risk Management process is the degree of risk evaluated?
What should be prioritized when making risk decisions within the ORM process?
What should be prioritized when making risk decisions within the ORM process?
What is the main purpose of the 'Implementing controls' step in ORM?
What is the main purpose of the 'Implementing controls' step in ORM?
Signup and view all the answers
What is a key focus during the 'Supervising' step of the Operational Risk Management process?
What is a key focus during the 'Supervising' step of the Operational Risk Management process?
Signup and view all the answers
Study Notes
Operational Risk Management (ORM)
- ORM is a decision-making tool for all levels to improve operational effectiveness.
- It anticipates hazards and reduces potential losses, increasing mission success probability.
- ORM enhances informed decision-making by providing a comprehensive knowledge base.
- ORM minimizes risks to acceptable levels, aligning with mission requirements. Wartime risk tolerance is higher than peacetime.
- ORM reduces mishaps, lowers costs, and optimizes resource use.
Identifying Hazards
- Identify hazards in each step of operational analysis.
- List potential causes for each hazard.
Assessing Hazards
- Evaluate the probability and severity of each hazard's risk.
Making Risk Decisions
- Prioritize risks by severity.
- Select controls to minimize risk while maintaining mission success.
Implementing Controls
- Implement controls to eliminate hazards or reduce the risk level.
Supervising Controls
- Regularly evaluate control implementation and effectiveness.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge on Operational Risk Management (ORM) concepts, including hazard identification, risk assessment, and decision-making processes. This quiz covers strategies to minimize risks and improve operational effectiveness in various scenarios. Ideal for those looking to enhance their understanding of ORM in both wartime and peacetime situations.
