Operational Risk Management (ORM) involves identifying, assessing, and mitigating risks that arise from the day-to-day operations of an organization. This includes risks related to processes, systems, and human factors that can lead to financial loss or reputational damage. Effective ORM helps organizations maintain stability and achieve their objectives by minimizing potential disruptions.
ORM is crucial for businesses in various sectors, including finance, healthcare, and manufacturing. By implementing robust ORM practices, organizations can enhance their resilience against unforeseen events, ensuring they can continue to operate smoothly even in challenging circumstances. This proactive approach fosters a culture of risk awareness and accountability.