There are ________ involved in the operational risk management (ORM).

• A. Four
• B. Five
• C. Seven
• D. Nine

Answer: (C)

Operational Risk Management is a structured, proactive process used to spot hazards and reduce risk to an acceptable level. The seven-step approach keeps the thinking organized from planning through execution and review. These steps are identifying hazards, assessing hazards, determining risk level and making risk decisions, developing and selecting controls, implementing controls, supervising and monitoring, and reassessing and debriefing after the action. This sequence ensures hazards are caught early, appropriate mitigations are chosen and put in place, the plan is watched for changes during execution, and lessons learned are captured for future operations.