Final answer:
Explicitness in ORM controls refers to the clear and specific definition and implementation of controls, which is key to their effectiveness. It contrasts with implicit controls, which leave room for interpretation. Clearly stated rules are critical as organizations, like educational institutions, evolve to address new issues.
Step-by-step explanation:
Understanding Explicitness in ORM Controls
When discussing the concept of explicitness in the context of Operational Risk Management (ORM) controls, remark 1) provides the most accurate description. Explicitness refers to the level of clarity and specificity in the definition and implementation of ORM controls. The idea is that well-defined and direct controls are more likely to be understood and followed correctly, which is essential for effectiveness in risk management. This contrasts with implicit controls, which are not directly stated and can be subject to interpretation, potentially leading to inconsistencies and lapses in adherence.
For instance, in colleges and universities, the existence of explicit rules can be seen in their Student Handbooks, where regulations regarding conduct, disciplinary procedures, and other policies are clearly outlined. As society encounters new challenges, such as cyberbullying or identity theft, organizations need to update their explicit rules to address these issues adequately. Thus, explicitness is a fundamental component of effective ORM controls across all types and is not limited to only certain controls as remark 3) suggests. Remark 2) incorrectly downplays the importance of explicitness, and remark 4) while correct in the definition of explicitness, does not convey its importance in ORM controls.