Why is an ORM policy significant for an organization?

An ORM policy is significant for an organization because it establishes a clear commitment to managing operational risks, which can encompass a wide range of factors, including processes, people, systems, and external events that could disrupt business operations. By implementing such a policy, an organization acknowledges the importance of proactively identifying, assessing, mitigating, and monitoring these risks in order to protect its resources and ensure business continuity.

Operational risk management is integral to creating a risk-aware culture within the organization, which helps in minimizing losses and enhances resilience and decision-making. This commitment is vital for improving efficiency and maintaining stakeholder confidence, as it demonstrates that the organization is taking necessary steps to safeguard its operations against potential risks.

The other options do not accurately reflect the core purpose of an ORM policy; for instance, while product development processes and financial risk management are important, they do not encompass the broader responsibilities and objectives that an ORM policy aims to address regarding operational risks.