In which way can technology improve ORM practices?

Technology plays a critical role in enhancing Operational Risk Management (ORM) practices, primarily through the automation of risk monitoring and reporting. This means that organizations can leverage technological tools to streamline the collection, analysis, and dissemination of risk-related data, making these processes more efficient and effective.

By automating monitoring, companies can achieve real-time insights into their risk environment, allowing for quicker responses to emerging risks. Automated reporting ensures that risk information is accurately documented and readily accessible, facilitating better decision-making and compliance with regulatory requirements. Furthermore, technology can integrate vast amounts of data from various sources, providing a comprehensive overview of potential operational risks, which might be challenging to achieve through manual processes.

While there might be advantages to technology in decision-making, it does not fully replace human judgment; instead, it enhances the capacity for better-informed decisions. Additionally, technology cannot eliminate all operational risks, as risks are inherent in the nature of business operations, and increasing risk exposure is contrary to the objectives of ORM. Thus, the capability of technology to automate risk monitoring and reporting stands out as a key improvement in ORM practices.