The ORM manager is the decision-maker for accepting or elevating risk.

Who is responsible for making the decisions whether to accept risk or elevate it up the chain of command?

• A. ORM manager
• B. Safety officer
• C. Team leader
• D. Project manager

Answer: (A)

The ORM manager plays a critical role in the operational risk management framework within an organization. This individual is tasked with overseeing the identification, assessment, and mitigation of risks. A significant aspect of this role involves determining the organization’s risk tolerance and deciding whether specific risks should be accepted or escalated to higher management for further deliberation. The rationale behind assigning this responsibility to the ORM manager is that they possess a comprehensive understanding of the overall risk landscape, including the potential impact of risks on the organization's objectives. They are trained to evaluate risks in the context of strategic goals and regulatory requirements, enabling informed decision-making regarding risk acceptance and escalation. Other roles, such as safety officers, team leaders, and project managers, while important in their own realms, generally focus on specific operational areas or projects. Their responsibilities might involve managing risks within their purview, but they typically report up to the ORM manager or collaborate with them to ensure that risks are appropriately managed and aligned with the organization’s broader risk strategy. This hierarchy is essential for effective risk governance, ensuring that decisions are made with the necessary oversight and expertise.

Who makes the call on accepting risk or pushing it up the ladder? A quick quiz from the everyday world of operations asks: A. ORM manager, B. Safety officer, C. Team leader, D. Project manager. The right answer, in most solid ORM frameworks, is A—the ORM manager. But why does that role sit at the center of risk decisions, and what does that actually look like on the ground? Let’s unpack it in a way that makes sense whether you’re sifting through a tangled project or simply trying to read the risk room with clarity.

Let me explain the big idea first. Operational risk management isn’t a one-and-done checklist; it’s a governing framework. It’s the system that helps your organization identify what could go wrong, estimate how bad it would be, and decide what to do about it. That framework relies on a clear line of sight from day-to-day operations all the way to top-level strategy. In that line, the ORM manager serves as the chief risk steward—someone who understands the entire landscape, from safety controls to regulatory considerations, and translates that into decisions that protect the organization’s objectives.

Why the ORM manager, not someone else? Consider the scope. Risk decisions aren’t merely about whether a single hazard is scary enough to stop a process. They involve weighing:

• The potential impact on strategic goals, not just on a single project

• The organization’s stated risk appetite and tolerance levels

• Regulatory requirements and external pressures that can shape decisions

• How different risks interact with one another (a cascade effect, if you will)

The ORM manager is trained to bring all of that together. They don’t just see “a risk” in isolation; they see a risk within the whole portfolio, within timelines, budgets, and reputational considerations. They know what would be too costly to accept and what could be absorbed if it’s within appetite and can be managed with the right controls. Because risk decisions ripple through teams, functions, and vendors, that cross-cutting view is essential.

What about the other roles in the mix? Here’s where the ecosystem makes sense:

• Safety officer: This role shines on the ground—identifying hazards, ensuring controls are in place, and monitoring safety performance. They’re the first to spot a risky condition and propose mitigation. But the final call about accepting a risk, or elevating it beyond local control, typically sits higher. In practice, safety officers feed information into the risk picture rather than owning the ultimate risk posture for the organization.

• Team leader: Teams operate in a specific context—a shift, a line, or a discrete process. They’re closest to the day-to-day realities and are excellent at spotting changes in conditions, training gaps, or near-misses. They should escalate concerns that can’t be resolved within their team’s authority, ensuring the broader risk picture gets updated. They’re not the sole deciders of what to accept or escalate, though they are essential in the early warning system.

• Project manager: Projects come with their own scope, budget, and timeline, and they’re uniquely vulnerable to risk events that derail plans. A project manager manages project-level risk and ensures that issues are communicated to the ORM manager when project-level decisions reach a threshold beyond the project’s control. The project view matters, but the decision to escalate should be made with the bigger organizational risk posture in mind.

In other words, the ORM manager acts as the guardian of risk governance. They’re the ones who ensure that risk decisions are consistent with the organization’s risk posture, not just the needs of a single project or department. That’s why the governance structure matters: it creates the space where local risk handling can feed into a coherent, enterprise-wide approach.

So how does this actually work in practice? A practical ORM framework relies on a few steady rhythms:

• A risk catalog and risk register: Risks are identified, described, and quantified in a living document. This isn’t a dusty spreadsheet; it’s a dynamic map that shows probability, impact, and the controls in place. It’s where the “what could happen” meets “how bad would it be” with a dose of reality about what’s controllable.

• Risk appetite and risk tolerance statements: These are the guardrails. They tell you how much risk the organization is willing to bear in pursuit of objectives, and how much risk you can tolerate in current conditions. When a risk exceeds those guardrails, it’s time to elevate.

• Escalation criteria and governance meetings: Clear thresholds prompt escalation. The ORM manager uses these criteria to decide whether to keep a risk in a department’s lane or bring it to executive attention. Regular governance forums ensure everyone is aligned, informed, and prepared to act.

• Control testing and monitoring: The risk picture isn’t static. Controls are tested, performance is tracked, and the risk posture is updated accordingly. If a control weakness worsens the risk, that modification might shift the decision about acceptance or escalation.

• Documentation and traceability: Decisions aren’t made in a vacuum. The rationale, data, and conversations behind an acceptance or escalation decision should be recorded. This creates a transparent trail for audits, lessons learned, and future decision-making.

Here’s a simple scenario to anchor this idea. Imagine a manufacturing company facing a potential supplier disruption that could slow production. The ORM manager weighs the likelihood of the disruption and the potential impact on delivery commitments, customer satisfaction, and regulatory commitments (like industry standards that require on-time delivery). If the supplier risk remains manageable within the organization’s appetite, and the company can mitigate it with alternative sourcing or buffer stock, the risk might be accepted—with enhanced monitoring and contingency planning. If, on the other hand, the disruption would seriously threaten core objectives and the organization lacks adequate mitigation, the ORM manager escalates to senior leadership and may trigger a restructuring of the supply chain and an updated risk posture. In this way, the decision isn’t about the singular risk in isolation; it’s about how that risk sits inside the organization’s overall risk posture.

A few practical tips that tend to help teams navigate this space:

• Keep the conversation grounded in impact, not just probability. People talk risk in terms of numbers, but the real question is “what happens to our objectives if this goes wrong?”

• Maintain a clear escalation path. If a risk can’t be managed at the current level, there should be a defined route to higher authority with enough context to make a good call.

• Use simple, consistent language. Terms like risk appetite, risk tolerance, and risk exposure should have shared meanings across the organization to avoid confusion during critical moments.

• Foster a culture of early warning. Encourage teams to flag concerns before they escalate into full-blown issues. Early signals help preserve flexibility and options.

• Don’t treat risk as a blocking exercise. The goal is smart risk-taking—knowing what we can absorb, what we must fix, and when to seek guidance. It’s about balance, not paralysis.

As you think about ORM in practice, a helpful metaphor pops up: the ORM manager is like the conductor of an orchestra. The players—the safety officer, the team leader, the project manager, and others—each bring their own instruments, their own tempo, and their own expertise. When everyone’s playing in harmony, the music is smooth. If one section lags or clashes, the conductor steps in, coordinates, and nudges the tempo so the whole performance remains coherent. The risk governance framework works the same way: it keeps a chorus of perspectives aligned with the company’s objectives and risk posture.

It’s worth noting a subtle tension that often surfaces in real life. Some teams push for faster decisions, some push for stricter controls, and others want more flexibility. That tension isn’t a bug—it’s a signal that different parts of the organization see risk through different lenses. The ORM manager’s job includes weaving those viewpoints into a single, defensible decision. It’s not about silencing any voice; it’s about ensuring the final call is anchored in the bigger picture.

If you’re exploring operational risk management, you’ll hear the same thread again and again: risk decisions should be informed, consistent, and traceable. They should reflect the organization’s strategy, regulatory constraints, and the practical realities of operations. That’s why the ORM manager’s role is central. They’re the steward of how risk is perceived, measured, and acted upon—so the business can move forward with confidence rather than fear.

Let me leave you with a closing thought that often helps bring clarity. Imagine your organization as a ship crossing open water. The captain feels the weather, the navigator maps sea currents, the crew notices changes in weather gear and fuel levels, and the port authorities set conditions for docking. The captain doesn’t micromanage every knot of rope or every rainfall; they rely on trusted, scenario-tested guidance and a chain of command that can respond quickly when conditions shift. In the same spirit, the ORM manager provides the overarching weather report and decision framework. They’re not alone in the ship’s operation, but they are the person who decides when to hold course, adjust sails, or seek a safer port.

In short: risk decisions in an operational setting are a governance affair, and the ORM manager is the backbone of that governance. They tie together strategy, compliance, and operational realities to decide what risks to accept and when to escalate. If you’re mapping out a strong risk program, that clarified line of sight—the center point where strategy meets day-to-day risk—will serve you well, again and again. And that, more than anything, keeps things moving with steadiness, even when the seas get a little choppy.