What is the primary focus of Operational Risk Management (ORM)?

The primary focus of Operational Risk Management (ORM) is indeed a structured method to assess and handle risks from operational failures. ORM involves identifying potential risks that arise from the operations of an organization, including risks associated with processes, people, systems, and external events. The aim of this approach is to minimize losses that could occur from such operational failures, thereby ensuring that the organization can maintain its performance and achieve its objectives effectively.

This focus is essential because operational risks can significantly impact an organization's efficiency, reputation, and overall risk profile. By systematically evaluating and managing these risks, organizations can develop strategies to mitigate potential issues before they arise or effectively respond when they do occur, thereby safeguarding their assets and enhancing their operational resilience.

In contrast, while the other options mention important aspects of business risk management and strategy, they do not encapsulate the comprehensive nature of ORM. Financial risk management, capital gains, and customer relations are essential components of a business's overall risk and performance strategy, but they do not specifically address the unique challenges posed by operational risks.