Which of the following is not considered one of the four principles of ORM?

The principle regarding managing risks by accepting no critical risks is not one of the four established principles of Operational Risk Management (ORM). ORM focuses on a framework that includes understanding and mitigating risks as part of effective decision-making processes.

The principles of ORM emphasize that risks should be accepted only when the benefits justify the associated costs, which reflects the rationale of evaluating risks critically. Additionally, it is vital to avoid unnecessary risks to uphold safety and operational integrity. Moreover, making informed risk decisions at the appropriate level ensures that those accountable are empowered to make judgments based on their expertise and situational awareness.

In contrast, stating that risks should be managed by accepting no critical risks does not align with ORM principles. Instead, ORM advocates for a proactive approach to identifying and mitigating risks rather than merely rejecting them outright, which can lead to missed opportunities for risk-beneficial actions.