What is the purpose of ORM?

The purpose of ORM, which stands for Operational Risk Management, is fundamentally to minimize risks to acceptable levels. ORM is a structured process aimed at identifying, assessing, and managing risks to enhance decision-making and reduce negative outcomes while achieving objectives. In practice, this involves evaluating potential hazards and implementing strategies to mitigate risks in various operational scenarios, ensuring that operations can continue safely and effectively.

The goal is to create a balance where risks are neither ignored nor overly complicated, but rather managed in a way that aligns with organizational goals and safety standards. By focusing on minimizing risks, organizations can foster a safer working environment and make informed decisions about activities and projects. This approach ensures that risks are understood and controlled, enhancing overall safety and effectiveness in operations.