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Compenents of Risk Management

What is risk management? What are the components of a risk management program? How can the risk management process reduce organizational risk? What are the roles and responsibilities of a risk manager as well as those of the clinical delivery team, including physicians? What are the regulatory requirements and standards associated with federal mandates, including HIPAA, and accreditation? What are the risk management methodologies, strategies, and tools? What is the financial and risk correlation for organizational profit and loss?

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Risk Management can be defined as an ongoing process of identifying, analyzing, treating, and monitoring the risks involved in any activity or process in a logical and systematic way (Abkowitz, 2008; Cagliano, 2011; U.S. Department of Health and Human Services [DHHS], 2012). As a process, it can have proactive and reactive components. Proactive components are procedures or actions implemented to prevent adverse events (DHHS, 2011). That is the organization actively searches ways and implements procedures within the organization's culture that will prevent possible adverse events. On the other hand, reactive components are responses to adverse events implemented to prevent future similar events (DHHS, 2011). In the case, the organization reacts after the fact and takes the necessary steps within the organization's procedures and statues to prevent similar events. For this context, Ross Baker et al. in Cagliano (2011) defined an adverse event as an unintended injury or complication resulting in disability, death or prolonged hospital stay that is caused by healthcare management rather than by the patient's underlying disease process.

Risk management is an essential part of any organization as it can reduce the organizational risks to adverse events as it relates to its operations. The use of proactive and reactive components reduces the probability of adverse events by minimizing the risk to patients, liability exposure of health care ...

Solution Summary

The solution involves a discussion of the definition of risk management, its components including strategies and tools, roles and responsibilities of a risk manager in health care and regulatory requirements. It includes references.