What role do risk controls play in ORM?

Risk controls are an essential component of Operational Risk Management (ORM) as they are designed to help mitigate and manage identified risks effectively. Their primary purpose is to reduce the probability and impact of adverse events that may occur during operations. By implementing risk controls, individuals and organizations can develop strategies to minimize risks, ensuring a safer and more efficient operational environment.

The concept behind risk controls is not to eliminate risks entirely, as this is often impractical or impossible. Rather, they aim to provide a framework to understand and address potential threats and vulnerabilities. This management can encompass a range of strategies, including training, engineering controls, administrative procedures, and personal protective equipment.

Using risk controls allows for a proactive approach to potential hazards rather than a reactive one, which is critical in maintaining operational readiness and safety. In the context of ORM, utilizing risk controls is a necessary step in creating a systematic process to evaluate and address risks before they lead to incidents or accidents.