Operational Risk Management helps identify which of the following?

• A. Identifies effective control measures
• B. Identifies cost-saving measures
• C. Identifies training needs
• D. Identifies recruitment strategies

Answer: (A)

Operational Risk Management is about spotting hazards and choosing actions that reduce risk. The main point is to identify which controls will effectively lower the chance and impact of those hazards. After hazards are identified and risk levels assessed, ORM guides selecting, implementing, and verifying risk controls to ensure they actually reduce loss. This is why it identifies effective control measures. Training needs or recruitment strategies aren’t the focus of ORM, though they might be influenced by risk decisions, and cost considerations aren’t the core objective.