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The institutional substrate that determines how decisions translate into action and how events become manageable risks. Distinct from decisions (what to do) and events (what happens), operating conditions govern how the institution functions under stress, change, and normal operations. When operating conditions degrade, even good decisions fail and risk systems activate too late.
A board decides to expand services. The decision is sound. But if operating conditions have degraded—staff are exhausted, learning channels are blocked, escalation boundaries are unclear—the expansion will fail regardless of the decision's quality. The problem isn't the decision but the conditions under which it must execute.
Section 1: The Problem