What is the primary goal of the ORM framework?

The primary goal of the Operational Risk Management (ORM) framework is to integrate risk management into organizational processes systematically. This involves embedding risk assessment and management practices into the organization's daily operations, decision-making processes, and strategic planning. By doing so, the organization can identify potential operational risks, evaluate their impact, and implement controls or mitigation strategies effectively. This proactive approach helps ensure that risk considerations are part of the organization's culture, enhancing overall resilience and operational effectiveness.

The focus of the ORM framework is not solely on eliminating all operational risks, as this is neither feasible nor practical; some level of risk is inherent in any business operation. Additionally, reducing operational staff or creating a uniform budget across departments are not aligned with the fundamental objectives of ORM, which center around managing risks rather than reducing resources or standardizing financial practices.