The concept of Operational Risk Management is primarily concerned with which of the following?

• A. Identifying and mitigating operational risks
• B. Maximizing production speed
• C. Ensuring environmental permits are up to date
• D. Scheduling preventative maintenance

Answer: (A)

Operational Risk Management centers on spotting hazards in day-to-day work and taking steps to reduce the chance and impact of those hazards. The best choice captures that purpose: identifying where things could go wrong and implementing controls to prevent or lessen harm to people, property, and operations. Other options touch on pieces that can influence risk—speeding up production, keeping environmental permits current, or scheduling maintenance—but they aren’t the overarching aim of risk management itself. In practice, RM involves recognizing hazards, assessing risk, applying controls, and continuously monitoring to keep risk at an acceptable level.