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:

    “[The sceptic] must acknowledge, if he will acknowledge any thing, that all human life must perish, were his principles to prevail. All discourse, all action would immediately cease, and men remain in a total lethargy, till the necessities of nature, unsatisfied, put an end to their miserable existence.”
    —David Hume (1711–1776)