What are the 5 steps of ORM?

The five steps of Operational Risk Management (ORM) are crucial for understanding and mitigating risks effectively. The correct sequence, as indicated in the chosen answer, begins with identifying hazards. This step is vital because it establishes a foundation for recognizing potential risks that could impact operations or safety.

Following identification, the next step is to assess the risks associated with those hazards. This involves analyzing the potential impact and likelihood of each risk, allowing for an informed decision-making process.

The decision-making phase comes next, where one evaluates various options for addressing the identified risks based on the assessment. After deciding on the best course of action, the implementation of the chosen controls or measures is carried out. This step ensures that the risk management strategy is put into practice effectively.

Finally, the supervision step entails monitoring and reviewing the implemented measures to ensure they are working as intended and to make adjustments as necessary. This continuous evaluation helps maintain a proactive approach to risk management.

The other options may include similar terms, but they do not adhere to the exact sequence or terminology established in standard ORM practices. For instance, "plan" and "make decisions" may not accurately represent the structured risk management approach defined in ORM. Understanding this structure is key for successful implementation in operational settings.