Why is it important to supervise and review controls in ORM?

The importance of supervising and reviewing controls in Operational Risk Management (ORM) primarily lies in the need to adapt to changing conditions. In any operational environment, circumstances can evolve due to various factors such as new threats, unexpected incidents, or alterations in procedures. By supervising and reviewing the controls in place, one can ensure that they remain effective and relevant amidst these changes. This adaptability is crucial for maintaining safety and minimizing potential risks, as static controls may become inadequate as the environment shifts. Regular reviews help identify areas for improvement or adjustment, promoting a proactive approach in managing risks efficiently.

While other options like ensuring personnel follow orders, verifying compliance with regulations, and improving operational efficiency are important aspects of management, they do not capture the dynamic nature of risk management as effectively as the need to adapt to changing conditions. Adapting controls ensures that risk management practices remain robust and responsive to the real-time operational landscape.