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

The primary purpose of Operational Risk Management (ORM) is to assess and manage risks. ORM is a proactive process designed to identify potential hazards, evaluate the associated risks, and implement measures to mitigate those risks. By systematically analyzing operations and potential threats, ORM helps organizations to make informed decisions that enhance safety and efficiency. This risk management process is essential in various fields, including security, safety, project management, and daily operations, ensuring that potential issues are identified and addressed before they can cause significant harm or disruption.

While other options touch on important aspects related to management or safety, they do not capture the comprehensive role of ORM in balancing risk and operational effectiveness. The goal of ORM is not only about eliminating hazards (which is impractical) but rather about understanding and managing them effectively to minimize their impact.