In the ABCD RM model, what steps does the "A" combine?

Prepare for the Operational Risk Management Exam with multiple choice questions, expert explanations, and comprehensive study tips. Enhance your risk management skills and boost your confidence to excel on exam day!

The choice indicating that the "A" in the ABCD RM model combines the steps of "Identify and Assess Hazards" is accurate because it reflects the foundational processes in risk management. The initial step in any risk management framework involves identifying hazards that could pose risks to an organization. Following this identification, assessing these hazards is crucial to understand their potential impact and likelihood.

This dual approach of identifying and assessing is essential in laying the groundwork for effective risk management strategies. Identifying hazards provides the context for understanding what risks exist, while assessing them quantifies their potential effects, aiding in prioritization and subsequent decision-making.

In operational risk management, this process is vital for developing a comprehensive view of the risks an organization faces, ensuring that more robust measures are in place for risk control, mitigation, and overall management. This particular integration of identifying and assessing hazards serves as a springboard for the subsequent steps in the risk management process, such as controlling, mitigating, or responding to those identified risks.

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