Operational risk management (ORM) centers on environmental, health, and safety (EHS) risks that can cause accidents or incidents anywhere that work takes place, whether it’s a manufacturing plant, an offshore drilling platform, a mine, or a marine terminal. This article will discuss why and how operational risks need to be managed effectively, the three essential ORM process capabilities, and considerations for implementation.

Operational risks are defined by their ability to lead to adverse events anywhere in an organization’s sphere of operations. The term ORM was first used widely in the financial services sector and then popularized starting about 2009 to describe the set of risks in industrial operations that could harm people, production, or the environment.

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