Final answer:
The five steps to ORM (Operational Risk Management) are: Identify and assess risks, Analyze and evaluate risks, Treat and mitigate risks, Monitor and review risks, Report and communicate risks.
Step-by-step explanation:
The five steps to ORM (Operational Risk Management) are:
- Identify and assess risks: This involves identifying potential risks and assessing their potential impact on the organization.
- Analyze and evaluate risks: This step involves analyzing the probability and severity of each identified risk and evaluating their potential impact.
- Treat and mitigate risks: In this step, organizations develop strategies to treat and mitigate the identified risks.
- Monitor and review risks: Organizations should regularly monitor and review the effectiveness of the risk mitigation measures.
- Report and communicate risks: Effective communication and reporting mechanisms should be in place to ensure that all relevant stakeholders are aware of the identified risks and the measures being taken to address them.