A risk management program is a complex but necessary initiatives within organizations. However, by following a specific process, organizations can maximize the effectiveness of risk management agenda.
Identifying and Analyzing
To manage risk, management must first identify the risks that posed a threat of loss.
Risk managers use various methods to collect information to identify such risks, collectively as incident reports, a report on the incident which is not in accordance with standard therapy. Incident reports help identify opportunities for training and weak processes within operations.
event performances, also in common use method possible exposures are often done as apart of quality assurance programs.
Patient reactions, such as complaints or the results of patient satisfaction surveys, is also used to identify potential loss exposure.
Past data can be very important in identifying risks and also to address it, as it provides learned from past mistakes or near misses. By analyzing past data, risk managers can identify the root cause of the incident that lead to losses. Past events help managers analyze the potential impact of existing risks and helps managers prioritize potential risks.
Open communication between management and employees may be considered the most effective form of risk analysis, as it can produce useful information about the effectiveness of processes and potential weaknesses in the process.
When the potential risks that they must be analyzed to determine their relevance. Risk managers must prioritize risks based on their potential for financial loss. Managers should prioritize addressing potential events that can lead to significant losses of smaller threats that would be cheaper.
assess possible risk management technology
Techniques used to manage risk can be broken down into two categories:
– Risk Control: strategies that aim to prevent or reduce damage
– Risk Financing: Methods used to pay for losses that occurred
Risk Control Techniques
avoid methods they are used to prevent the possibility of loss completely. If the risk can not be reduced to stay within a certain project, avoid activities would effectively avoid the risk associated with it.
loss prevention reduces the likelihood of potentially compensable events from occurring
loss prevention strategies are to review and implement policies and procedures and training staff
Educate staff about the rules applicable release medical records or patient protected health is loss prevention technology as it reduces the likelihood of the occurrence.
Loss reduction techniques are used to reduce the potential consequences of an event that has occurred.
Diligence is the key to training methods reduction, the loss is compensated can be lower for companies that exemplified diligence in trying to prevent incidents or follow an incident that has happened (to investigate cases and determine the root cause).
Another example of loss reduction technique if the medical facility were using fire-retardant materials during construction. This would reduce total loss considerably if the fire.
Separation of loss exposures
separate loss exposures involves organizing its management and resources in a way that if a loss occurs, its overall impact on the organization would be minimized.
A separation technology turns saying, “do not keep all your eggs in one basket”, as it involves distributing resources and activities in many places
Example :. .
Facilities and sellers can store their inventory in multiple locations in the event of fire or other event that would damage assessment
Medical practices can also choose to avoid contracts with suppliers and purchased through multiple vendors in case the seller were running out of stock on an item.
duplication methods are used to serve as a back up in the event of a loss. Many practices keep copies of patient medical records if an event that damages the original
duplication methods are also used in terms of physician coverage
It must be when chemotherapy is administered to a patient, a doctor or a mid-level on-site if the patient was a reaction to the drug. If only one hand was available to achieve, and something up that causes the provider to have to go, the treatment therapy would not be able to afford or would be an offense to do so.
Contractual transfer of Control
Contractual risk transfer involves transferring risk from one party to another. An example of this is when a medical office leases property, so that transfer the risk of loss or damage to the property owner.
Risk retention is a technology that includes a plan on how to cover losses if they were to occur.
The simplest risk retention strategy is simply to pay for the loss as it happens. This is not viable for smaller institutions, depending on the amount of loss.
Companies can also throw a dollar in reserve fund that can be used to cover any future losses.
Organizations can also borrow to cover losses
Doctors also carry extensive malpractice insurance to help cover the losses incurred
Risk retention should be considered when: ..
• There are known risks that can not be reduced or avoided
• A risk does not carry great potential for huge losses and the organization can pay for the losses themselves
• There are predictable loss
Risk transfer involves transferring organization only liabilities to another person, but still based on the legal obligations. This is usually done by purchasing outside insurance.
Select risk Technique
Organizations take at least one risk management strategy and a risk financing technique.
Selecting the most effective technique requires the organization to predict how the selected technology would affect its mission and goals (ie, it may not be viable for an expert to avoid risks by avoiding procedures necessary for relevant specialty).
The Agency shall also consider which method is advantageous because it is an activity.
Implementation requires communication between risk management, department managers, and organizational leaders. All leaders must understand the technology chosen to implement and educate employees on the importance and purpose.
Communication and education ensures the implementation of the technology is smooth, effective and understood.
Monitor and Improve implementation Technique
Once the technology has been implemented, its performance will be closely monitored, assessing and improving demand management. Risk management procedures can be very complex in nature and require fine tuning when put to work.