What is the primary purpose of ORM in operational settings?

The primary purpose of Operational Risk Management (ORM) in operational settings is to enhance mission success while minimizing risk. This approach involves systematically identifying, assessing, and managing risks that can impact the achievement of objectives. By focusing on enhancing mission success, ORM encourages a proactive mindset where risks are managed effectively rather than simply eliminated.

Minimizing risk does not mean that all risks can be eradicated; instead, ORM facilitates the understanding and prioritization of risks, allowing organizations to make informed decisions that balance potential hazards against operational goals. This is essential for effective performance, resource allocation, and ensuring that operations can be conducted safely and efficiently.

While identifying hazards is an important component of ORM, it is merely one part of a broader strategy aimed at overall mission success. Compliance with regulations, while critical, is also a subset of ORM's wider goal of achieving strategic objectives with manageable risks. Eliminating all possible risks isn't feasible in operational environments; therefore, ORM emphasizes risk management rather than complete risk elimination.