What does ORM stand for in risk management?

ORM stands for Operational Risk Management. This term refers to the systematic process of identifying, assessing, and controlling risks associated with an organization's operational activities. Operational Risk Management encompasses a variety of risk elements, including those related to people, processes, systems, and external events.

The significance of ORM lies in its proactive approach to risk—ensuring that potential hazards are acknowledged and managed effectively before they can cause harm or disruption. This methodology is essential for maintaining safety in environments where operational activities occur, especially in high-stakes settings like military operations or industrial workplaces.

In contrast, the other options mentioned do not accurately capture the scope and intent of ORM. For instance, Organizational Resource Management implies a broader focus on managing resources but does not specifically relate to risks. Similarly, Observational Risk Monitoring and Other Resource Measures denote specific strategies or metrics rather than a comprehensive management approach to operational risks. Understanding ORM is crucial for effective risk management, particularly in ensuring the safety and efficiency of operations.