In the ORM process, at which step should risk decisions be made?

The correct choice is Three because this is the step in the Operational Risk Management (ORM) process where risk decisions are made based on the analysis of potential risks identified in earlier steps. At this stage, individuals assess the risks, consider the potential outcomes, and weigh the benefits against the identified hazards.

By making risk decisions in this step, leaders can effectively prioritize actions that mitigate risks, ensuring that those with the greatest potential impact are addressed first. This approach allows for informed decision-making, promoting safety and efficiency within operations.

In contrast, earlier steps focus on identifying hazards and assessing risks, while later steps involve implementing controls and monitoring their effectiveness. Therefore, it is in step three where the culmination of risk assessment leads to actionable decisions regarding how to proceed within the parameters of acceptable risk.