Operational Risk Management
Definition of Operational Risk Management as it relates to Business, Risk Management
Operational Risk Management (ORM) refers to the strategies and processes implemented by organizations to identify, assess, mitigate and monitor risks associated with their operations. It encompasses all aspects of business activities that could potentially result in financial loss or harm to the organization's reputation, including people, systems, and processes. The goal of ORM is to ensure that an organization can achieve its objectives while managing risk within acceptable levels. Effective ORM requires a strong risk culture, clear roles and responsibilities, effective communication, and ongoing monitoring and reporting.