What is the primary function of ORM in risk management?

The primary function of Operational Risk Management (ORM) in risk management is to identify and assess hazards. ORM is a systematic process that helps organizations recognize potential risks associated with operations. By identifying hazards, organizations can analyze the potential impact and likelihood of these risks occurring. This foundational step allows for the development of strategies to mitigate risks and enhance safety.

While implementing safety regulations, eliminating all hazards, and creating training programs are essential aspects of a comprehensive safety management system, they are not the primary function of ORM. Instead, these activities are often a result of the information garnered through the identification and assessment phase facilitated by ORM. By focusing on the identification and assessment of hazards, ORM establishes a framework for informed decision-making and proactive risk management.