What is Operational Risk Management?
Simply put, Operational Risk Management (ORM) is the process of detecting, assessing, and controlling risk. It is a logic-based, common sense approach to making calculated decisions on the various factors associated with any kind of activity. These factors include: human(s), machine(s), environment, management, and mission. Because risk is inherent in CAP missions and activities, CAP officially adopted the six-step ORM process in May, 1997 as its method for evaluating the level of risk; identifying ways to control, mitigate, or eliminate risk; and making decisions on whether and how to proceed with the activity.
