How many steps are in the ORM process?

How many steps are in the ORM process?

• A. 3
• B. 5
• C. 4
• D. 6

Answer: (B)

The main concept being tested is the five-step process used in Operational Risk Management to systematically handle hazards and reduce risk. It involves identifying hazards, assessing the risk they pose, developing controls and making risk decisions, implementing the chosen controls, and then supervising and evaluating the results. This five-step cycle is designed to be ongoing and iterative, so you continuously reassess as conditions change. That’s why five is the best answer: it reflects the complete sequence taught for ORM. A model with fewer steps would skip essential parts (like formal assessment or ongoing evaluation), while a model with more steps would add extra stages not part of the standard framework.

The main concept being tested is the five-step process used in Operational Risk Management to systematically handle hazards and reduce risk. It involves identifying hazards, assessing the risk they pose, developing controls and making risk decisions, implementing the chosen controls, and then supervising and evaluating the results. This five-step cycle is designed to be ongoing and iterative, so you continuously reassess as conditions change. That’s why five is the best answer: it reflects the complete sequence taught for ORM. A model with fewer steps would skip essential parts (like formal assessment or ongoing evaluation), while a model with more steps would add extra stages not part of the standard framework.