Risk Management in Healthcare: Advantages and Disadvantages

pretend direction in Healthc be Advantages and DisadvantagesSubmitted to Mr. Emmanuel Badu assay Management in health c are zealThe health care environment faces varied and numerous of emerging endangerment, related to health care reform. The purpose of pretend management is to pinpoint voltage problems before they stool affect and occur, so that the memorial t equalt arse planned and invoked ahead of time if needed. The endangerment treatment process pot mitigate un roaring results on attaining objectives of the nerve. This is a around-the-clock and vital process of the business and management, and it should address the issues that tramp affect the execution of objectives. Risk management mustiness applied effectively that would mitigate and dwell the assay that can critical the project. The effective insecurity management can measure by early and aggressive approach with collaboration and actively participation of stakeholders. Stable and strong management ar e important to cause an environment that has open communication regarding possible encounter. Internal and away risk must both consider for drill cost, technical and schedule.Enterprise risk management suspensors ensure effective reporting and compliance with laws and regulations, and helps avoid terms to the entitys reputation and associated consequences. In sum, enterprise risk management helps an entity to drum where it wants to go and avoid pitfalls and surprises along the way. (Flaherty, 2004, p.1)Benefits of risk management in healthcare facilityThe healthcare facilities are forever and a day experiencing tremendous pressure from its consumer to suffer richlyest- shade, reasonable cost care, workforce and aging population. Implementing this program has a personate from planning to operations for handling crisis especially in healthcare facility where lives are handled. Challenges highlight that need to address in a healthcare facility are patient safety, regulation s, policy, medical error and dissemble of legislation. The potential issues can have a unsound impact or can create a long term effects. Ignoring the potential risk can compromise patient care, financial losings and increase liability.Compliance is virtuoso of the benefit of implementing risk management, this ensure aspects of accreditation, licensure, medical conditions and coverage. This can prevent and cling to the healthcare organization from degrees of loss. It can also provide effective easing or decrease the potential loss. If you follow the principles of risk management you can mitigate collateral losses following an adverse event (Hiatt, 2007, p.1). another(prenominal) benefit is to provide a framework to increase patient outcomes, for example patients survey can inform the organization if clients are not satisfied with service, and this is an issue to consider for quality improvement. Lastly diminution of adverse effects, the organization should know there strengths a nd weaknesses to prepare them to face the challenges for providing quality care. Uncertain situation presents both risk and opportunity, it can erode or enhance the organization. Risk management enables the management to effectively face and carry with un evaluate situation and increase its value. Risk management is typically a hybrid function bridging a number of disciplines to reduce the incidence of organizational loss (Hall, 2015, p.1)Risk managementReviewing activities and privileged environmentThis component is the base of the framework, and it wraps how the health care facilities view and addressed the risk. It encompasses the managements stylus and philosophy, it is a rope of values, attitudes and practices to deal with risk. This is communicated deep down in the organization by policy statements and actions as well. The management aligned the people, process, and organization to facilitate victorious action to cope in risk appetite. The said style is communicated an d must be understood by the member of the organization. Every member of the organization should know the organizations philosophy, ethical values integrity, and culture of the workplace.Setting objectivesObjectives are everlastingly aligned with tone of organization and always consistent with the risk appetite. It has intravenous feeding categories the strategic, operations, reporting and compliance. The objective should work well with all levels of risk that the organization accept in order to achieve its objective or risk tolerance. The successful risk management gives an assurance that the objectives provide be reached and achieved within acceptable level of residual risk. Setting objectives is a tool that necessitate and create target for the organisation to achieve. The healthcare facility need to set objectives to ensure all staff or employees are on the identical level or same page when working in the facility. The employees will need to understand the reason behind the organisation to maximize the effectivity and efficiency. Management also need to set objectives for the employees to meet the level of expected action within the organization. According to Vitez (2009) objectives should be clear, measurable and realistic (p.1). essence identificationThis refers both on the upcountry and external circumstances. The organization identifies possible events that may affect negatively and positively on achieving its goals and objectives. Some of the internal categories originally from the choices of management Operational risk, Empowerment risks, Information technology risk, justice risk, Financial risk, and decision risk. The objective of risk identification is the early and day-and-night identification of events that, if they occur, will have negative impacts on the projects ability to achieve performance or capability outcome goals (Mitre Institute, 2007, p.1).Risk assessment with particular reference to the impact and likelihood riskThe risk are identified, studied its impact, and the basis for determining how to solve and managed them. Its a combination of qualitative and quantitative in order to determined and give out how to managed and prioritize risk. The risk are ranked by levels this can help the managers to know and visualize future effects. First level is the Low translation area refers to not significant situation that may be controlled, this ordinarily can solve within the organization among the team. Second level strong point exposition area, this refers fair or not so urgent attention. The impact can be high and or low risk, but should managed consequently to prevent high impact and prevent the likelihood. Third level is the highschool exposition area, refer to risk that need urgent attention, critical importance and on top priorities.Risk response plansThe organizations management select the ersatz risk response and the effects on risk that have high probability to happen and also the impact on financi al against the benefits. developing sets of plans to avoid, lessen and accept the risk. The four possible risk ask avoidance, treating, transferring and tolerance. dodging refers to response where you avoid or exit the causes of risk. Treating where action is implemented to lessen or mitigate the risk of unfavourable impact. Transferring means reducing or decreasing the likelihood and impact of risk. One of the popular transferring response is insurance. gross profit refers to no action taken to the present risk. The organization must able to treat risk to know its causes and evaluate whether to manage or digest it according to convenience and opportunity of the response.Control activitiesBuilding strong actions plans, policies and procedures to be implemented to make sure the response to risk has positive and favourable outcome. This are also the policies and procedures build and implemented to make sure the risk action are has favourable outcome. Different type of control are preventive controls, manual controls, management controls and others. The control activities are part of the procedures by every organization to reach their objectives. It is the foundation for all other categories and components of internal control, gives discipline and structure.Information and communicationIt is important for the organization to have substitution of information that are relevant to risk identification and this should communicated within the organization. strong communication and reporting is very vital to the organizations risk management. The information can also be assessed through quality much(prenominal) as accurate, accessible, current and timely. The communication is also by shared boot and process, successful both informal and informal internal communication and external communication such as stakeholders. Poor communication has a big impact on the organization through increase of mistake and errors and increases breed and fears among the staff. On ot her hand, the effective communication of gives success within the facilities. observeThis is evaluation and assessment of the quality performance of the organization. This can be through with(p) by activities and different evaluation or can be both. The enduringness of the organization or healthcare facilities on risk management should be monitored, to able to response properly, changes may implement, and to avoid crisis that may cause losses of the business. If there was a health care risk management result that could monitor any changes in criminal history or licensure situation and instantly alert the employer if there has been new incident, that tool could be vastly helpful. (Wisjesinghe, 2010, p.1) This is really important because it can give information to the management for military capability and efficiency of the program. Also by means of monitoring the situation is always under control.Reference listGarvey, P.R. (2013) Risk Identification retrieved from https//www.m itre.org/publications/systems-engineering-guide/acquisition-systems-engineering/risk-management/risk-identificationHall, S. ( 2015) The Role of Risk Management in Healthcare Operations retrieved from http//www.psfinc.com/press/the-role-of-risk-management-in-healthcare-operationsHiatt, C. (2011) 5 tangible benefits of an Effective Risk Management Program retrieved from http//www.beckersasc.com/asc-accreditation-and-patient-safety/5-tangible-benefits-of-an-effective-risk-management-program.htmlVitez, O. (2009) The Importance of Setting melodic line Objectives retrieved fromhttp//smallbusiness.chron.com/importance-setting-business-objectives-4724.htmlWijesinghe, D. (2010) Healthcare Risk Management Whats your biggest exposure? Retrieved from http//hr.toolbox.com/blogs/really-know-your-contractors/healthcare-risk-management-whats-your-biggest-exposure-37663 The International honorary society of New Zealand 2013 DHM706 International Healthcare Policy Version 7Page 1 discernment modera ted on 12 August 2013