Final answer:
Operational Risk Management is a decision-making process used to identify and manage hazards. The five key steps include identifying hazards, assessing them, making risk decisions, implementing controls, and supervision to manage risks effectively.
Step-by-step explanation:
Operational Risk Management (ORM)
Operational Risk Management (ORM) is a systematic, decision-making process used to identify and manage risks associated with hazards in operations. The steps in ORM, as they relate to hazard management, include:
Identify Hazards: This step involves recognizing potential sources of harm or difficulty in an operation or activity.
- Assess Hazards: After identifying hazards, the next step is to evaluate the potential impacts and the likelihood of these hazards causing harm.
- Make Risk Decisions: In this phase, it is essential to determine the best course of action to mitigate risks by weighing the benefits versus the potential dangers.
- Implement Controls: Once a decision has been made, appropriate controls must be put in place to eliminate or reduce risks to an acceptable level.
- Supervise: Supervision involves monitoring the effectiveness of the controls and making adjustments as necessary.
Each of these steps aims to create a safer and more efficient operational environment.