Why is supervision critical in the last step of ORM?

Supervision plays a vital role in the last step of Operational Risk Management (ORM) because it ensures that the risk controls that have been put into place are actively adhered to and that they function as intended over time. This final step often involves monitoring and reviewing the effectiveness of risk controls and ensuring compliance with established procedures.

By having supervision in place, it is possible to identify any deviations from the risk management strategies or emerging risks that were not previously considered. This oversight allows for prompt adjustments and reinforces accountability among team members, ensuring that everyone follows the protocols designed to mitigate risks. Continued compliance with risk controls is essential for maintaining a safe and effective operational environment, thus sustaining the overall integrity of the ORM process.

The other choices, while relevant to different aspects of ORM, do not capture the primary focus of supervision in this context. Proper training, analyzing past incidents, and reducing the need for documentation are important components of ORM, but they do not directly address the continual oversight and compliance monitoring that supervision provides in the final step of the ORM process.