What key aspect does risk assessment focus on in ORM?

Risk assessment in Operational Risk Management (ORM) is fundamentally centered around identifying and evaluating risks. This process is crucial because it allows organizations to understand the potential threats they face, assess the likelihood and impact of those threats, and prioritize them appropriately.

By identifying risks, organizations can categorize them based on factors such as severity and frequency. This helps in formulating effective strategies to mitigate or manage those risks. Evaluating these risks involves analyzing existing controls and determining their effectiveness, which informs decision-making regarding risk acceptance or the need for additional measures.

The other options do not align closely with the primary focus of risk assessment in ORM. For instance, evaluating employee performance, determining financial viability, and comparing operational efficiency, while important aspects of overall management, do not directly address the identification and analysis of risks that could impact the organization’s operations. Thus, the key aspect of risk assessment in ORM is accurately capturing the potential risks that could disrupt operations and finding ways to manage them effectively.