How should risks be managed according to ORM principles?

Managing risks according to Operational Risk Management (ORM) principles emphasizes the importance of anticipating uncertainties as a proactive measure. By anticipating potential risks and uncertainties, individuals and teams can identify hazards before they materialize, allowing for the implementation of necessary controls or mitigations in advance. This forward-thinking approach is crucial in preventing accidents and ensuring safe operations, as it fosters a culture of awareness and preparedness.

The ORM process encourages continuous assessment and adaptation, which is bolstered by anticipating uncertainties. This allows decision-makers to develop strategies that minimize the impact of unforeseen events while maximizing opportunities for success. Therefore, recognizing and preparing for uncertainties directly aligns with the core principles of ORM, enabling effective risk management and enhancing operational performance.