You will prepare and submit a term paper on Risk Methodology. Your paper should be a minimum of 1000 words in length.

You will prepare and submit a term paper on Risk Methodology. Your paper should be a minimum of 1000 words in length. Intended audiences include large state organizations concerned with important national issues such as food, security or the environment. The paper will seek to discuss the Operation Risk Management (ORM) methodology.

Operation Risk Management (ORM) methodology can be defined as an engineered-based risk management system that is used to examine risks and safety of existing systems1. This system is commonly used by the military and federal aviation administration aspects of the government. It can also be used by other sectors like food administration and environmental protection. For example, the Food and Drug Administration department can use this methodology to develop security protocols and risk assessment procedures for food supply. This risk assessment tool is designed to mainly help in the identification of operational hazards and benefits. When such risks are determined, the best course of action can be formulated and implemented to combat unforeseen events. Risks normally arise from failed or inadequate processes, systems, people or external factors. For example, food supply can be provided to the wrong population as a result of an erroneous report generated by the food system.

ORM uses a well defined procedure to address risk issues and design risk preventive measures. The steps used by this methodology in order are: risk identification, assessment, analysis, making of decisions, implementation and supervision or review2. To begin with, identification of risks is the first step in ORM that involves examination of each activity constituted in a process. According to this methodology, a risk is any circumstance that can result to illness, property damage, injury or degradation. For example, preparation of juice could be a process in making dessert for clients.

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