Camera RAW files are unprocessed, meaning all the photo processing is done on the computer. It is like taking a film negative to a dark room to be developed. The RAW file is the negative and the computer serves as the dark room. With a RAW file, you have complete control over the temperature adjustments (for white-balance), tint, hue, and exposure. However, since Camera RAW files are not typical images, most image-viewing programs will not open them. Therefore, most camera companies include Camera RAW editing software with their high-end cameras. These programs allow you to open RAW files, do the necessary processing, and save them in common image formats such as bitmap, TIFF, and JPEG.
If you click here there is a help section, click the RAW File Format link under Index if you require the Olympus Studio software.