Operational Risk Management
Operational Risk Management (ORM) refers to the processes and practices implemented by an organization to identify, assess, and mitigate risks associated with its operations. These risks can encompass various aspects of business, including financial management, technology, human resources, legal and regulatory compliance, and supply chain management. The primary goal of ORM is to minimize operational losses, protect the organization's reputation, and ensure continuity of business activities. Effective ORM involves a proactive approach that includes defining clear policies and procedures, implementing robust internal controls, monitoring risk indicators, and providing regular training and communication to all stakeholders involved in managing risks. By managing operational risks effectively, organizations can improve their overall performance, reduce costs associated with losses and failures, and achieve sustainable growth.