What is an essential element of successful ORM?

An essential element of successful Operational Risk Management (ORM) is the understanding of the importance of careful planning. Effective ORM requires proactive identification and assessment of risks associated with operations, which cannot be achieved without a structured and detailed planning process. Careful planning allows for the establishment of appropriate control measures to mitigate risks and guides decision-making to ensure safety and efficiency.

When proper planning is in place, organizations can anticipate potential hazards, allocate resources effectively, and create response strategies that enhance their resilience against unexpected events. This comprehensive approach not only helps in minimizing risks but also fosters a culture of safety and accountability within the organization.