How does the ORM process define a hazard?

The definition of a hazard within the context of the Operational Risk Management (ORM) process is encapsulated in the idea of any real or potential condition that leads to adverse outcomes. This perspective emphasizes that a hazard can manifest in various forms, whether it is an existing danger or a situation that could lead to harm, damage, or loss.

This definition is extensive and aligns with the goal of ORM, which is to identify and evaluate potential risks to ensure the safety and effectiveness of operations. It encompasses not just those hazards that are already present, but also those that could potentially arise, allowing for proactive measures to be taken to mitigate risks before they result in negative consequences. By understanding hazards in this way, ORM fosters a culture of awareness and prudence, prompting the implementation of strategies to manage and reduce these risks effectively.

In summary, defining a hazard as any real or potential condition causing adverse outcomes highlights the importance of recognizing both existing and possible threats in the management of operational safety and effectiveness.