What does the "D" in the ABCD model correlate to in the 5-step ORM process?

In the context of the ABCD model associated with the operational risk management (ORM) process, the "D" stands for "Implement Controls and Supervise." This part of the model emphasizes the actions required to put in place effective risk controls and systems of oversight after risks have been identified and assessed. Implementing controls is crucial as it translates theoretical risk assessments into practical measures that mitigate those risks, thereby safeguarding the organization's operations.

Supervision adds an essential layer of oversight to ensure that the implemented controls function as intended. This involves monitoring how these controls operate in real-time and making adjustments as necessary to maintain their effectiveness. Implementing controls and supervision ensures that there are proactive measures in place to address potential issues before they escalate, aligning closely with the proactive nature of operational risk management.