"ORM is the strategic imperative for identifying, assessing, and mitigating potential disruptions for sustained growth, value creation, and fortified resilience against operational risks."

Operational Risk Management (ORM) is a continual and iterative process crucial for identifying, assessing, and mitigating potential disruptions within an organization's operational framework. This strategic imperative involves risk assessment, decision-making, and control implementation to ensure the acceptance, mitigation, or avoidance of operational risks, fostering sustained growth and value creation.

ORM serves as a comprehensive oversight mechanism for operational risk, covering potential losses from internal inefficiencies, human factors, system vulnerabilities, and external events. It is a crucial component within the broader spectrum of risk management processes. While ORM primarily focuses on identifying, assessing, and mitigating potential disruptions within an organization's operational framework, it intersects with and influences other risk management domains and contributes to the overall risk consciousness of an organization, providing a foundational understanding of operational vulnerabilities.

Through continual monitoring, scenario analysis, and the integration of ORM into organizational culture, businesses can navigate the complex landscape of operational risks, ensuring business continuity and resilience.

01 Risk Assessment

ORM begins with a comprehensive understanding and evaluation of operational risks, considering internal processes, human factors, system vulnerabilities, and external events. This step forms the foundation for informed decision-making.

02  Decision Making

Informed decisions are made based on the identified operational risks. Organizations must determine appropriate responses, which may involve accepting certain risks, implementing mitigation measures, or strategically avoiding specific risks.

03  Risk Controls

The operational risk management process extends to the implementation of controls. This involves establishing robust mechanisms to address identified risks, ensuring resilience and continuity in the face of unforeseen challenges.