What is the correct order of the seven steps of Operational Risk Management (ORM) listed in the material?

What is the correct order of the seven steps of Operational Risk Management (ORM) listed in the material?

• A. Define mission tasks; identify hazards; assess risk; identify options; evaluate risk vs gain; execute decision; monitor situation.
• B. Identify hazards; assess risk; identify options; monitor situation; define mission tasks; evaluate risk vs gain; execute decision.
• C. Define mission tasks; assess risk; identify hazards; execute decision; identify options; monitor situation; evaluate risk vs gain.
• D. Identify hazards; identify options; define mission tasks; assess risk; monitor situation; evaluate risk vs gain; execute decision.

Answer: (A)

The main idea being tested is the correct sequencing of the seven ORM steps—from planning to follow-up—so risk is managed as the mission is defined and carried out. Begin with defining the mission tasks to establish scope and objective. This sets the context for what needs to be accomplished and guides every later step. Then identify hazards associated with those tasks, so you know what could cause harm in this specific mission. Next, assess the risks by considering how likely each hazard is and how severe the potential consequences could be. With hazards understood and prioritized, identify options for risk controls or mitigations to reduce those risks. After that, evaluate the risk versus the gain to determine which course of action offers the best balance of mission success and acceptable risk. Once a decision is made, execute it by implementing the chosen controls. Finally, monitor the situation to ensure the controls are effective and to catch any new information that would require adjustment. Other sequences don’t fit this flow because they would either try to identify hazards without grounding them in the mission, place monitoring before action, or mix up the order of risk assessment, options development, and decision-making, which breaks the logical progression of risk management.

The main idea being tested is the correct sequencing of the seven ORM steps—from planning to follow-up—so risk is managed as the mission is defined and carried out.

Begin with defining the mission tasks to establish scope and objective. This sets the context for what needs to be accomplished and guides every later step. Then identify hazards associated with those tasks, so you know what could cause harm in this specific mission. Next, assess the risks by considering how likely each hazard is and how severe the potential consequences could be. With hazards understood and prioritized, identify options for risk controls or mitigations to reduce those risks. After that, evaluate the risk versus the gain to determine which course of action offers the best balance of mission success and acceptable risk. Once a decision is made, execute it by implementing the chosen controls. Finally, monitor the situation to ensure the controls are effective and to catch any new information that would require adjustment.

Other sequences don’t fit this flow because they would either try to identify hazards without grounding them in the mission, place monitoring before action, or mix up the order of risk assessment, options development, and decision-making, which breaks the logical progression of risk management.