What is the first step of the ORM process?

The first step of the Operational Risk Management (ORM) process is to identify hazards. This initial phase is crucial as it involves recognizing potential risks and dangers that could adversely affect operations or safety. By systematically identifying these hazards, individuals and teams can begin to understand the environment they are operating in and the specific threats they may face.

Identifying hazards allows for a comprehensive analysis of the surroundings and aids in the development of strategies for managing those risks effectively. This step sets the foundation for the entire ORM process, as it informs subsequent steps, including assessing and implementing controls. Without a clear identification of hazards, the entire risk management process may be flawed, leading to insufficient safeguards and preparedness.

Recognizing the significance of this first step emphasizes the proactive nature of ORM in promoting safety and operational effectiveness. It encourages a mindset focused on awareness and vigilance, which is imperative in high-stakes environments.