What is the final step in the ORM process?

The final step in the Operational Risk Management (ORM) process is to supervise. This step is crucial as it involves ongoing monitoring and review of the risk management measures that have been implemented. Supervision ensures that the controls are functioning as intended, identifies any new risks that may arise, and verifies that existing risks are being managed effectively.

In the context of ORM, supervising includes regular assessment of the effectiveness of the controls, ensuring compliance with established risk management practices, and making necessary adjustments based on changes in the operational environment or organizational structure. By implementing a robust supervision process, organizations can maintain a dynamic risk management approach that evolves with emerging threats and operational changes.

Each preceding step in the ORM process, such as assessing hazards, making risk decisions, and implementing controls, lays the groundwork for effective supervision. However, without the supervisory step, the organization would risk losing visibility over the risks and controls in place, potentially leading to unaddressed vulnerabilities.