ORM training is specialized instruction in loss-prevention strategies for risks that businesses and organizations may face. These dangers include fraud, employee error, system failures, terrorism, and natural disasters, among others. Depending on the needs and risk areas of the organization or business, operational risk management training programs vary greatly. Candidates who have completed the ORM training can sit for an exam to demonstrate their understanding of operational audit standards, internal controls, documentation policies, and risk management tools. They can earn certification as a certified internal auditor (CIA), certified public accountant (CPA), or certified management accountant if they pass the exam (CMA).
Many top executives pursue risk control certification to gain a better understanding of industry-specific risk mitigation and management tools. The majority of operational risk management training programs that lead to ORM certification require potential candidates to have a risk management, accounting, or finance degree. Candidates must also have at least two years of relevant work experience to be considered for the programs. For a period of time, some programs require candidates to work under the close supervision of a senior-level operational risk manager.
Many colleges and universities offer risk management classes in their business and finance departments. A number of organizations also provide online operational risk management training. Despite the fact that these classes do not lead to certification, the information gained from them can help a company executive not only deal with threats of catastrophic operational breakdowns and glitches, but also negotiate lower insurance rates once ORM plans are in place. Furthermore, stockholders who demand security for their investments will feel more at ease with a company if they know the company has a plan in place to identify and deal with any events that could disrupt operations.
Deregulation, globalization, and technological changes have increased operational risks for banks in particular. As part of capital adequacy requirements, the Basel Committee on Banking Supervision (BCBS) has begun to levy a charge on banks for both intrinsic and extrinsic risks in the banking system. These threats include data entry errors, software disruptions, fiduciary breaches, hacking, and internal fraud, to name a few. Bank officials can use operational risk management training to collect data on losses and calculate the amount of money they should keep in reserve to cover future losses.