What decision-making tool increases effectiveness by managing risks across all personnel levels?

Operational Risk Management (ORM) serves as a comprehensive decision-making tool that enhances effectiveness in organizations by proactively managing risks across all levels of personnel. It focuses on the identification, assessment, and mitigation of risks that could impact operational processes and workflows. This systematic approach ensures that risks are communicated clearly and effectively among all employees, regardless of their position, fostering a culture of shared understanding and accountability.

ORM empowers individuals at various organizational levels to make informed decisions by providing guidelines and frameworks that consider potential risks associated with their actions. Moreover, it incorporates continual feedback and improvement mechanisms, which help organizations adapt to evolving risks over time and enhance their resilience.

In contrast, while other options like a Risk Management System and a Hazard Assessment Tool address specific aspects of risk management, they may not encapsulate the holistic approach that ORM provides across all personnel levels. Similarly, the Decision Making Matrix may assist with evaluating multiple options within a specific decision context but does not inherently manage risks across the entire organization as effectively as ORM does. This makes ORM a crucial tool for fostering a proactive risk-aware culture within organizations.