What is "emerging risk" in ORM?

Emerging risk in Operational Risk Management (ORM) refers to new and unpredictable risks that arise from various changes in the business environment, such as technological advancements, regulatory shifts, or evolving market conditions. These risks are often difficult to identify and assess because they are not yet fully understood, making them distinct from well-documented risks that have established management practices in place.

The nature of emerging risks lies in their potential to disrupt existing operational frameworks, affect business continuity, and pose challenges that organizations may not have previously encountered. As such, recognizing and managing emerging risks is critical for organizations looking to maintain resilience and adaptability in a dynamic landscape. This proactive approach helps in anticipating potential challenges before they become significant issues.

In contrast, the other options point to risks that are either well understood, already addressed, or specific to certain contexts, such as those related to aging technology systems. These do not encapsulate the essence of emerging risks, which require ongoing vigilance and assessment as situations evolve.