Operational Risk Management - Four Principles of ORM

Four Principles of ORM

The U.S. Department of Defense summarizes the principles of ORM as follows:

  • Accept risk when benefits outweigh the cost.
  • Accept no unnecessary risk.
  • Anticipate and manage risk by planning.
  • Make risk decisions at the right level.

Read more about this topic:  Operational Risk Management

Famous quotes containing the word principles:

    “It must appear impossible, that theism could, from reasoning, have been the primary religion of human race, and have afterwards, by its corruption, given birth to polytheism and to all the various superstitions of the heathen world. Reason, when obvious, prevents these corruptions: When abstruse, it keeps the principles entirely from the knowledge of the vulgar, who are alone liable to corrupt any principle or opinion.
    ”
    —David Hume (1711–1776)