Operational risk management is classified as what type of process?

Operational risk management is primarily classified as a decision-making process. This classification is essential because it involves assessing potential risks and making informed decisions based on the evaluation of those risks. The core of operational risk management revolves around identifying threats to operational activities, evaluating the potential impact of those threats, and determining the best course of action to mitigate or respond to those risks.

In this context, decision-making encompasses the analysis of available options, weighing the benefits against the risks, and choosing actions that will enhance mission success while minimizing adverse effects. This process is critical in not only safeguarding personnel and resources but also in achieving operational effectiveness and efficiency.

By understanding operational risk management through the lens of decision-making, individuals involved in the process can better appreciate the importance of their judgments and the need for a systematic approach to risk handling.