How many processes are described in the ORM framework?

How many processes are described in the ORM framework?

• A. 3
• B. 5
• C. 4
• D. 6

Answer: (B)

Operational Risk Management uses a structured sequence of actions to manage risk in operations. From spotting hazards to making risk decisions, implementing controls, and then monitoring outcomes, each step serves a distinct purpose. The complete ORM framework describes a sequence that includes identifying hazards, assessing hazards, developing controls and making risk decisions, implementing controls, and supervising and evaluating. This full set ensures hazards are found, evaluated, mitigated, put into place, and then checked over time to confirm effectiveness. If a description leaves out one of these phases or adds an unrelated step, it wouldn’t match the standard ORM process. So the correct description is the one that covers the full sequence from identification through ongoing supervision.

Operational Risk Management uses a structured sequence of actions to manage risk in operations. From spotting hazards to making risk decisions, implementing controls, and then monitoring outcomes, each step serves a distinct purpose.

The complete ORM framework describes a sequence that includes identifying hazards, assessing hazards, developing controls and making risk decisions, implementing controls, and supervising and evaluating. This full set ensures hazards are found, evaluated, mitigated, put into place, and then checked over time to confirm effectiveness.

If a description leaves out one of these phases or adds an unrelated step, it wouldn’t match the standard ORM process. So the correct description is the one that covers the full sequence from identification through ongoing supervision.