Master the 2026 CRISC Challenge – Grab Your Risk Control Superpowers!

The focus of Operational Risk Governance is centered on the organizational structure and accountability of Operational Risk Management (ORM). This involves establishing clear lines of responsibility and authority within an organization to manage operational risks effectively. By defining roles and responsibilities, organizations can ensure that there is accountability at different levels, which is crucial in risk management processes. It includes creating frameworks for decision-making and oversight, ensuring compliance with regulations, and fostering a risk-aware culture.

In this context, having a well-defined organizational structure helps facilitate better communication regarding risk issues, allows for efficient decision-making, and supports the alignment of ORM with the organization's overall strategy and objectives. This focus on governance contributes significantly to the robustness of the operational risk management framework, allowing businesses to proactively identify and mitigate potential risks.

Other options, while important in various contexts, do not capture the core aspect of governing operational risk. Performance metrics relate more to measurement and evaluation rather than structure and accountability. Investment strategies focus on financial decisions rather than operational risk oversight, and human resource management mainly pertains to workforce management without the specific emphasis on risk responsibilities. Thus, the emphasis on organizational structure and accountability is paramount in effective Operational Risk Governance.