Introduction

Operational Risk Management (ORM) is the portion of a business’s total risk that originates from its processes and facilities. ORM creates a comprehensive solution for managing risk across an organization.  

We define comprehensive as all departments across an organization, including but not limited to EHS compliance, operations, engineering, maintenance, supply chain, production, training, and human resources.

ORM is a subset of Enterprise Risk Management (ERM). More specifically, ORM addresses operational and compliance risks.   In reality, an organization’s risk profile is constantly changing due to change in its portfolio, economic cycles, and as other external influences manifest.

This white paper discusses ORM as a structured process to focus efforts and drive the desired results leading to a dynamic risk registry that aligns with the organization’s risk tolerance and business objectives.