Operational Risk Management
Operational Risk Management (ORM) refers to the process of identifying, assessing, and mitigating risks that can impact an organization's operations, including financial and non-financial risks. ORM is concerned with managing risks associated with internal processes, systems, and people, as well as external events such as regulatory changes or natural disasters. It aims to ensure the continuity and stability of an organization's operations, protect its assets and reputation, and minimize losses due to unexpected events. Effective ORM requires a strong risk culture, clear policies and procedures, robust risk management tools and techniques, and ongoing monitoring and reporting. ORM is closely related to Financial Risk Management (FRM), which deals with managing risks associated with financial instruments, markets, and investments, but ORM has a broader scope that encompasses all operational aspects of an organization's activities.