Which of the following is a core component of operational risk management?

Comprehensive employee training and education is indeed a core component of operational risk management because it directly contributes to an organization's ability to identify, assess, and mitigate risks associated with its operations. By providing employees with the knowledge and skills necessary to understand their roles and responsibilities concerning risk, organizations can foster a culture of risk awareness and proactive management.

Training ensures that employees know the processes and procedures that help minimize errors and operational failures, thereby reducing the likelihood of incidents that could lead to financial loss or reputational damage. It equips staff to recognize potential risks and respond appropriately, ensuring that everyone in the organization is aligned in their understanding of risk management practices.

Effective training programs can also address compliance with regulations and internal policies, enabling employees to navigate risk scenarios more effectively. This proactive approach to risk management enhances an organization's resilience and ability to recover from operational disruptions.