The paper discusses the concept of risk management within the healthcare sector and in particular the individual healthcare organizations that are in place. It shows how to identify the risks that may be within the organization and how these risks can be effectively handled to avoid injuries among the employees.
Healthcare Management
Risk management in healthcare organizations includes activities that integrating the recognition of risks, assessments of risks, coming up with strategies to be used and mitigation of these risks that have been identified. The focus on this paper is how to proactively prevent risks in healthcare organizations. The area of focus in financial risk management is risks that are managed using trade financial instruments such financial management systems, appropriate EMR, coding, billing, collections, general accounting, budgeting, expense management, managed care contract strategy and vendor relations processes. Risks are unavoidable and are present in every human situation .T he most common concept that appears in all definitions of risks is the uncertainty of the outcomes involved in the risks. Due to the uncertainty of the nature of risks the healthcare systems should have proactive measures in place to ensure that these risks are prevented and do not take place at any cost (University of California, 2008).
Risk management involves various steps and tools these include; establishment of the goals and context i.e. The risk environment. Within the organization leaders should make sure that they establish the risk environment and come up with goals which they intend to achieve. Secondly there is need for the identification of the risk this means that the impending risk has to be identified first before any action is taken. Third an analysis of the risk that is identified has to be done this analysis will help in establishing everything involves in the risk so that it can be dealt with appropriately. Fourth there should be assessment or evaluation of the risk involved this helps in finding out the appropriate ways of dealing with the risk. Fifth step is treating or management of the risks which involves dealing with the risk that has been identified; the next step is monitoring and reviewing the risk and the risk environment on a regular basis. This will help in finding out if there is another impending risk. Finally he last step is continuously communicating, consulting with the involved stakeholders and giving reports .this helps for future reference incase a similar risk occur (Berg, 2010).
The current operating environments require an integrated risk management approach .in such a setting it is not appropriate and sufficient to manage risks at the level of individual activity. HealthCare organizations will definitely benefit from a comprehensive approach when it comes to dealing with risks. risks in financial systems are just but one f the many risks that an organization can face .risks that present themselves in different fronts as well as high level, high-impact risks always require a coordinated and systematic corporate response. Integrated risk management is therefor defined as a proactive, continuous and systematic process that involves understanding, management and communication of risks from the wide perspective of an organization.it involves making strategic decisions which contribute to achievement of the overall corporate objectives of the organization. integrated risk management therefore requires that ongoing assessment of potential risks in an organization are carried out for the organization and then integrate these results at corporate level in order to aggregate the results got at a corporate level in order for priorities to be set and improvement of the decision making process. Integrated risk management should hence be embedded in the corporate strategy of the organization and shape the risk management culture of the organization. Identification, assessment and management of risks across organizations will help reveal the importance of the entire sum of risks and independence of each of the parts (The World Bank Group, 2014).
Another proactive aspect of integrated risk management is the fact that it does not focus only on the minimization or mitigation of risks but at the same time it focusses on support activities that foster innovation in order to achieve greatest returns with acceptable costs, results and risks. When looking at a decision making perspective integrated risk management involves establishing hierarchical limit system and risk management committees that will help in the determination of setting and allocation of limits (ECRI Institute, 2010).
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