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

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.