What follows after 'assessing' in the ORM process?

What follows after 'assessing' in the ORM process?

• A. Implementing controls
• B. Making risk decisions
• C. Identifying hazards
• D. Conducting evaluations

Answer: (B)

In the Operational Risk Management (ORM) process, after assessing hazards, the next logical step is making risk decisions. This step involves evaluating the level of risk associated with identified hazards and determining whether the risk is acceptable. It also includes deciding on appropriate actions to mitigate or control risks, which may lead to implementing those controls in subsequent steps. Making risk decisions is critical as it directly influences how an organization or individual responds to risks that could impact mission success, safety, and operational effectiveness. This phase ensures that informed choices are made based on the assessment, guiding further action in managing risks effectively.

In the Operational Risk Management (ORM) process, after assessing hazards, the next logical step is making risk decisions. This step involves evaluating the level of risk associated with identified hazards and determining whether the risk is acceptable. It also includes deciding on appropriate actions to mitigate or control risks, which may lead to implementing those controls in subsequent steps.

Making risk decisions is critical as it directly influences how an organization or individual responds to risks that could impact mission success, safety, and operational effectiveness. This phase ensures that informed choices are made based on the assessment, guiding further action in managing risks effectively.