Which principle of ORM focuses on the need to make decisions at appropriate levels?

The principle of ORM that emphasizes making decisions at appropriate levels is centered on ensuring that individuals who have the most knowledge and responsibility for specific tasks are the ones making risk decisions. This principle is crucial for effective operational risk management because it promotes accountability, encourages informed decision-making, and optimally allocates resources.

Making risk decisions at the right level ensures that those who are impacted by the decisions or who have the expertise are involved in the process. This involves delegating decision-making authority to leaders and team members at the appropriate levels in an organization, allowing for quicker and more relevant responses to risks. By empowering people who have firsthand knowledge of the risks involved, organizations can better address safety and operational concerns.

This principle supports the overall ORM approach by enhancing responsiveness to risk management challenges and ensuring that decisions align with the organization's objectives and capacities. Thus, this focus on appropriate decision levels is vital for effective risk management practices.