Which of the following is one of the components of ORM?

Identifying risk is a fundamental component of Operational Risk Management (ORM) because it serves as the first step in the ORM process. By identifying potential risks, organizations can then assess the likelihood and impact of these risks, enabling them to implement appropriate strategies and controls to mitigate or manage them effectively. This proactive approach allows teams to anticipate and address potential issues before they escalate, ultimately leading to improved safety, efficiency, and overall operational effectiveness.

The other components listed, while important in various contexts, do not capture the initial phase of ORM as accurately as risk identification does. Monitoring performance, adjusting outcomes, and compiling data are activities that follow risk identification and assessment, aimed at ensuring the management strategy is effective and continuously improving.