Question

operational risk management establishes which of the following factors?

a) identifies effective control measures
b) provides a systematic structure to avoid risk
c) reduces mission accomplishment by adding administrative burdens
d) inhibits initiative

Explanation:

Analyze the purpose of Operational Risk Management

Operational Risk Management (ORM) is a decision-making tool used to increase operational effectiveness by identifying, assessing, and managing risks. It is designed to provide a systematic, structured process to make informed decisions, minimize risks, and maximize the probability of successful mission accomplishment.

Evaluate the given options

• A) Identifies effective control measures: While identifying controls is a step within the ORM process, ORM as a whole establishes a broader systematic framework.
• B) Provides a systematic structure to avoid risk: ORM establishes a systematic, continuous process to identify hazards, assess risks, and implement controls to mitigate or avoid unnecessary risk.
• C) Reduces mission accomplishment by adding administrative burdens: Incorrect, as ORM is intended to enhance mission accomplishment, not reduce it.
• D) Inhibits initiative: Incorrect, as ORM encourages proactive decision-making and calculated risk-taking rather than inhibiting initiative.

Answer:

• A) Identifies effective control measures
• B) Provides a systematic structure to avoid risk (Correct answer)
• C) Reduces mission accomplishment by adding administrative burdens
• D) Inhibits initiative