In the ABCD model for Operational Risk Management (ORM), what is the first step?

In the ABCD model for Operational Risk Management (ORM), the first step is to assess the situation. This step involves evaluating the current context and understanding the risks involved before taking any action. Assessing the situation helps in identifying potential hazards, understanding their implications, and determining the appropriate course of action to mitigate risks. This foundational step is crucial, as it sets the stage for the following actions, ensuring that any decisions made are based on a thorough understanding of the circumstances at hand. By having a clear assessment, one can better balance resources, communicate effectively, and execute plans in subsequent steps, leading to more effective risk management overall.