What does ORM stand for in risk management?

In the context of risk management, ORM stands for Operational Risk Management. This concept pertains to identifying, assessing, and mitigating risks that could adversely affect an organization's operations. It is a structured process that helps organizations to minimize potential losses caused by operational failures or external threats. This involves analyzing various operational risks, such as those related to processes, people, technology, and external events.

Operational Risk Management is critical because it ensures that operational activities align with the organization's objectives while safeguarding resources and assets. It facilitates informed decision-making and enhances resilience against unforeseen circumstances, ultimately contributing to an organization's stability and performance.

The other options, while they may seem related, do not accurately define ORM in the context of risk management. For example, operational resource management would imply focusing specifically on resources rather than an overarching view of risks. Operational readiness maintenance suggests a focus on preparing for operations rather than managing risks. Lastly, organizational risk methodology could imply a broader framework that doesn't directly indicate operational risks. Therefore, the specificity of Operational Risk Management is what makes it the correct answer in this scenario.