What are operational controls designed to do in risk management?

Operational controls are specifically designed to mitigate operational risks within an organization. This involves implementing procedures, policies, and practices that help identify, monitor, and manage risks associated with day-to-day operations. By effectively applying these controls, organizations aim to minimize the likelihood of operational failures, enhance efficiency, and maintain compliance with regulatory requirements.

Operational risks can arise from various sources, including inadequate processes, human errors, system failures, or internal fraud. Therefore, operational controls could include measures such as access controls, process documentation, regular risk assessments, and incident reporting mechanisms, all aimed at reducing the impact of these risks.

Other options do not align with the primary function of operational controls. Increasing organizational risks does not align with the purpose of implementing controls, as the objective is to reduce risk exposure. Evaluating past claims pertains more to claims management than operational controls themselves. Facilitating employee training, while important, is just one component of a broader risk management strategy and not the primary focus of operational controls.