What is Operational Risk Management (ORM)?

Operational Risk Management (ORM) is fundamentally a decision-making tool designed to help personnel identify, assess, and control risks associated with operational activities. It encompasses a systematic approach that enables individuals and teams to make informed decisions regarding potential hazards and the measures necessary to mitigate them. This is critical in military environments, where the stakes for safety and mission success are extraordinarily high.

ORM encourages a proactive mindset, prompting users to consider various aspects of their tasks and the risks involved at different stages of operations. By employing ORM, decision-makers are equipped to enhance situational awareness, prioritize resources effectively, and implement appropriate control measures that can minimize risks to personnel, equipment, and mission objectives. This process also fosters a culture of safety and responsibility, thereby contributing to overall operational effectiveness.

In contrast, safety protocols refer to established procedures and guidelines aimed at ensuring safety but do not encompass the broader decision-making framework provided by ORM. Budgeting methods are financial strategies used to allocate resources and do not pertain directly to risk management. An evaluation form is typically a tool for assessing performance or compliance, rather than a comprehensive system for managing operational risks.