What is included in the operational risk management (ORM) process?

In the operational risk management (ORM) process, assessing risks is a critical component as it focuses on identifying potential hazards and understanding the implications they may have on achieving objectives. This assessment plays an essential role in enhancing decision-making, allowing individuals to weigh the potential risks against the benefits of different courses of action. By systematically analyzing risks, decision-makers can implement strategies to mitigate them, prioritize resources accordingly, and improve overall operational effectiveness.

The other choices, while relevant to various aspects of planning and resource management, do not directly relate to the core of the ORM process. Identifying opportunities for innovation might be part of strategic planning, but it does not specifically address risk assessment. Similarly, planning mission objectives and allocating budget resources are important aspects of operational planning but do not focus on the assessment of risks required for effective ORM. This distinction is crucial for understanding how ORM functions in practice, emphasizing the importance of risk assessment in fostering informed decision-making.