Operational Risk Management

Question 1

Four principles of ORM

Answer 1

1. Accept Risk when benefit outweighs cost.
2. Accept no unnecessary risk.
3. Anticipate and manage risk by planning.
4. Make risk decisions in the right time at the right level.

Question 2

FIVE ELEMENTS of Operational Risk Management (ORM)

Answer 2

IAMIS*

1. Identifying hazards
2. Assessing hazards
3. Making risk decisions
4. Implementing controls
5. Supervising