Operational Risk Management establishes which of the following factors?

• A. Identifies effective control measures
• B. Sets mission deadlines
• C. Allocates budget
• D. Assigns personnel

Answer: (A)

Operational Risk Management is a structured approach to reducing risk by identifying hazards and putting in place controls. The key outcome of this process is determining and implementing effective control measures that lower risk to an acceptable level. While setting deadlines, budgeting, and assigning personnel are important management activities, they are not the primary result produced by the ORM process.