Components Of A Risk Management Program

1170 Words5 Pages
Every healthcare organization, no matter how small or specialized, should be aware of its risk situation and take appropriate measures to protect itself against clinical, financial and operational exposures. Risk management is the process of minimizing risk to an organization by developing systems to identify and analyze potential hazards to prevent accidents, injuries, and other adverse occurrences, and by attempting to handle events and incidents which do occur in such a manner that their effect and cost are minimized. Effective risk management has its greatest benefits in application to insurance in order to avert or minimize financial liability (Duckers, Faber, Cruijsberg, Grol, Schoonhoven, & Wensing, 2009). Components of a Risk…show more content…
• Communication: To anticipate risk management pitfalls and opportunities, the risk management professional must be an insider who is provided with information on proposed mergers, acquisitions, and joint ventures early in due diligence process. Equipped with such information, the risk management professional is in position to advise senior management on the risk management implications of various new business arrangements. • Coordination: Risk management professional needs to establish reporting and communication relationships with key individuals within the organization. • Accountability: Every health care organization’s risk management professional, including those in small institutions that have job duties in addition to risk management, should have a written job description that outlines key risk management responsibilities. Risk management professionals should be accountable of their performance. How the Risk Management Process Can Reduce Organizational Risk. Health risk management program protects the organization against risk associated with accidental losses, regardless of the loss. Some of the risks are patient center-care-related risk, medical staff-related risk, employee-related risk, property- related risk, financial risk, and others. Risk management process helps the risk management professional set priorities and assists in ensuring a comprehensive risk management effort. The risk management process consists of five steps: • Identify and
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