Which part of the ABCD model is linked to all steps of the 5-step ORM process?

Prepare for the Operational Risk Management Exam with multiple choice questions, expert explanations, and comprehensive study tips. Enhance your risk management skills and boost your confidence to excel on exam day!

The ABCD model emphasizes the importance of communication throughout every phase of the ORM process. By linking to all steps, effective communication ensures that stakeholders understand hazards, risk assessments, and control measures. This aspect is vital because it promotes transparency and collaboration among team members, which enhances decision-making and ensures that everyone is aware of the potential risks and the appropriate responses.

In the context of the ORM process, communication assists in assessing hazards by sharing findings and potential issues; it plays a role in analyzing risks by facilitating discussions about severity and likelihood; it is crucial when controlling risks, as it ensures that everyone knows what actions are being taken; and it remains essential during the implementation of measures, as there needs to be clarity on responsibilities and procedures.

In contrast, focusing solely on assessing hazards, controlling risks, or implementing measures would not capture the holistic nature of operational risk management, which requires ongoing dialogue and information sharing to be truly effective. This perspective underscores the view that communication is a thread that runs through every element of the ORM process, linking them together for comprehensive risk management.

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