What is the main role of governance in Operational Risk Management (ORM)?

The main role of governance in Operational Risk Management (ORM) is to provide oversight and ensure accountability. Governance structures are essential in establishing the frameworks and processes that guide how an organization manages its operational risks. Effective governance involves setting clear roles and responsibilities, which includes monitoring risk management practices and ensuring that appropriate measures are in place to identify, assess, and mitigate risks.

This oversight helps create a culture of risk awareness where responsibilities are not just relegated to specific teams but are integrated into the organizational ethos. By enforcing accountability, governance ensures that all stakeholders understand their role in managing operational risks and that there are mechanisms to address any failures in risk management practices.

Other options focus on aspects that, while important to an organization, do not directly pertain to the core function of governance in ORM. For instance, defining organizational strategy is crucial for overall direction but does not address the specific oversight functions related to risk. Similarly, developing marketing plans and managing employee relations, while essential for business operations, do not relate to the governance framework necessary to mitigate and manage operational risks effectively.