Employee training is critical in Operational Risk Management (ORM) primarily because it equips staff to identify and mitigate risks effectively. When employees are trained in ORM principles and practices, they gain the necessary knowledge and skills to recognize potential operational risks within their roles and the organization as a whole. This proactive approach allows employees to respond swiftly to risk situations, implement controls, and contribute to the overall risk management framework.
A well-trained workforce is essential in fostering a risk-aware culture, where employees understand the importance of risk management and feel empowered to take appropriate actions. With this foundational understanding, they can apply best practices, report incidents or near misses, and suggest improvements, ultimately leading to a more resilient organization.
While other factors like job satisfaction, compliance with labor laws, and productivity are important, they are secondary benefits that arise from effective training in ORM. The primary focus of such training is to ensure that staff can actively engage in identifying and managing risks, which is the cornerstone of operational resilience and effectiveness.