Who should be involved in the ORM process within an organization?

Involvement of all employees in the Operational Risk Management (ORM) process is crucial because operational risks can arise from various sources throughout an organization. Every employee, regardless of their role, has unique insights into the processes and potential risks within their departments. By engaging all employees, the organization can foster a culture of risk awareness and ensure that potential risks are identified and communicated effectively.

Involvement of the entire workforce enhances the organization's ability to recognize and mitigate risks as employees are often the first to notice anomalies or issues in daily operations. Additionally, this inclusive approach encourages collaboration and sharing of best practices for risk management across different functions, leading to a more resilient and proactive operational risk framework.

While upper management, the compliance department, and external consultants play significant roles in the ORM process, they cannot effectively manage operational risks without input and involvement from all employees. This collective engagement supports a comprehensive understanding of risks and promotes a proactive approach to managing them.