Which of the following is a benefit of effective ORM?

Effective Operational Risk Management (ORM) aims to identify, assess, and mitigate risks that could negatively impact an organization's operations. One of the primary benefits of implementing robust ORM processes is the minimization of operational disruptions. By proactively managing risks, organizations can avoid incidents that might lead to delays, losses, or other significant interruptions in their operations.

When ORM practices are properly applied, they establish a framework for recognizing potential hazards, assessing their likelihood and potential impact, and implementing control measures to mitigate those risks. This proactive approach leads to smoother operations, as potential issues are addressed before they escalate into major problems. Consequently, the organization can maintain a higher level of efficiency and productivity, ensuring that business objectives are met without unnecessary setbacks.

In contrast, increased regulatory compliance costs, heightened employee turnover rates, and extended time spent on risk assessments are typically seen as challenges or drawbacks associated with managing risks rather than benefits. While compliance may require significant investment, effective ORM should lead to streamlined processes that can ultimately reduce these costs over time. Therefore, the core benefit of minimizing operational disruptions stands out as a fundamental advantage of effective ORM.