Operational Risk Management
Operational Risk Management (ORM) is a systematic process for identifying, assessing, monitoring, and mitigating risks arising from internal processes, people, systems, or external events that could disrupt business operations. It focuses on preventing losses from failures in day-to-day activities, such as human error, fraud, system breakdowns, or legal issues. This methodology is widely used in industries like finance, healthcare, and technology to ensure resilience and compliance.
Developers should learn ORM when working in regulated industries (e.g., banking, insurance) or on critical systems where operational failures could lead to significant financial loss, data breaches, or safety issues. It helps in building robust software by proactively addressing risks in development pipelines, deployment processes, and infrastructure management, ensuring reliability and meeting compliance standards like SOX or GDPR.