Week 1 Assignment: Elements of a Risk Management Program
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In 1,000-1,250 word paper conduct a review of the risk management program for new employees in a health organization. Include the following:
- Explain the steps of presenting a risk management program to new employees.
- Evaluate the presentation for compliance with the American Society of Healthcare Risk Management (ASHRM).
- Propose Recommendations for Inclusion in the Program or changes that you would make to further improve the program to meet compliance
- Support your analysis with peer reviewed references, which may include your textbook.
Prepare this assignment according to the APA guidelines found in the APA Style Guide, located in the Student Success Center. An Abstract is not required.
This assignment uses a grading rubric. Instructors will be using the rubric to grade the assignment: therefore, students should review the rubric prior to beginning the assignment to become familiar with the assignment criteria and expectations for successful completion of the assignment.
You are required to submit this assignment to Turnitin. Refer to the directions in the Student Success Center. Only Word documents can be submitted to Turnitin.
As healthcare organizations focus on the maximization of profits to ensure sustainable operation, there is a need for evaluating operational efficiencies. Many organizations take different risks in the evaluation of their operational efficiency and in the process of ensuring increased profitability. In some cases, the major objective of the healthcare system, which should be the promotion of health and the protection of patient well-being through quality care is compromised. It is important to ensure that in the integration and implementation of different strategies to boost operational efficiency and profitability the well-being of the patient is prioritized. The process should include a comprehensive risk management program. Such a program should incorporate different elements that enhance its effectiveness by averting risk in the provision of care. According to Carroll (2013), the major elements of a risk management program include risk identification, analysis, risk evaluation and treatment, and risk avoidance. This research focuses on the identification and discussion of the different elements to offer insight into effectiveness in the management of risk in healthcare.
Elements of a Risk Management Program
A risk management program focuses on the minimization or elimination of risks in the provision of care. The program involves different processes that when integrated boost its effectiveness in the management of risks. According to the Information Systems Audit and Control Association (2013), the program must start by identifying the risk or the potential risk. The identification process ensures that the program can be applied to minimize the chances of its occurrence or recurrence. The process involves the sourcing and identifying the root causes of the risk. The identification of the cause and the risk equips the risk management team with the essential knowledge for its management. According to the American Society for Healthcare Risk Management (2015), the identification of the risks(s) makes it easier for the team to devise measures for its mitigation thus minimizing recurrence and promising quality care. It makes it allows for the design and development of effective risk metrics and efficient, proactive risk response that are directed at the source of the risk. Doing so ensures effectiveness in handling the risk. As such, an effective risk management program should involve the element of identification.
Risk analysis is another critical element of the risk management program. The analysis of risks plays a significant role in the management of risks in healthcare provision. The process involves the prioritization of the risks identified and the determination of the ones that require immediate attention in consideration of their influence on the process of services delivery. Whilst all risks place the patient at uncertainty concerning his/her health, some risks have a greater negative influence that threatens the health and well-being of the patient. The risk managers and the professional health providers must work together towards the identification of an efficient and immediate solution towards the risk. Risks that pose no substantial or significant impact can be resolved after tackling the most pressing ones. The management must ensure that the program prioritizes risks after identification in accordance with their impact on operational efficiency and effect on the process of health care services provision (Cole, Chaudhary, & Bang, 2014).
Following the elements of risk identification and analysis, an effective risk management program should include the element of risk treatment. The component involves other aspects such as the risk financing, risk control, and risk avoidance that are integrated within it to ensure effectiveness in tackling the identified risks. Risk control, for instance, involves the measures and strategies implemented to deal with the risks and ensure that their occurrence is as minimal as possible or that they are entirely averted. Risk financing involves the process of directing a facility’s resources towards the treatment of the identified risks. Apart from the risk control and financing, risk avoidance is a critical component of risk treatment, which involves the elimination of the risk by avoiding it after identification (Carroll, 2013). These processes work positively towards enhancing the effectiveness of the element of risk treatment. As such, risk managers should ensure that risk treatment receives the necessary attention and incorporates all the aspects that promote its effectiveness. Doing so guarantees the effectiveness of the whole program.
Another essential element of a risk management program in healthcare is risk evaluation and monitoring. The evaluation and constant monitoring of the identified, analyzed and treated risks equips the management of the effectiveness of the earlier processes. Such information makes it possible to determine if the applied methods are effective in managing the risks. In addition, the review of the process allows the determination of whether the set objectives are achieved and makes it possible for the development of more effective measures where prior actions do not lead to success (Carroll, 2013). In view of its importance, the element of risk evaluation and monitoring play an important role in the advancement of quality care and patient satisfaction.
Additionally, an effective risk management program must consider and outline the role of the leadership and management of the healthcare facility. An effective leadership understands the need to undertake organizational processes while considering and prioritizing patient safety and care. For instance, while the management and leadership might adopt new technologies to boost operational efficiencies, it is critical to ensure that such technologies do not threaten patient safety and well-being. Of greater importance, however, is to ensure that each member of the risk management team understands and undertakes duties clearly and diligently. The management should be on the forefront in the creation of awareness concerning the risk management program and encourage the nursing professionals to focus on its success (Cole, Chaudhary, & Bang, 2014). For instance, risk managers should provide education on risk management issues, participate in meetings, discuss activities with the leadership, be responsive to stakeholder requests, and make rounds to ensure the effective application of the program. The effectiveness of the risk management program relies significantly on the efficacy of the risk management team.
effectiveness of a risk management program is critical to the advancement of
health care provision. Risk management minimizes risk and prevents its
recurrence in the provision of care. It serves a significant role in the promotion
of patient satisfaction by ensuring the delivery of quality care. Additionally,
it enhances organizational development by prompting operational efficiency and improved
profit efficiency. The different elements of a risk management program improve
its effectiveness. The program should include the identification of the risk, its
analysis, evaluation, and treatment. These elements avert risks and prevent
their recurrence in the delivery of care services. It is important to ensure
that the risk management team focuses on the efficient implementation of the
program to ensure its effectiveness. Moreover, the senior leadership and the staff
must be involved in the process. Risk managers should ensure this through awareness
creation and education on the issue. Also, organizational meetings should
include risk management as a critical agenda while staff members should provide
accurate and timely recording of risks to ensure effective risk management.
American Society for Healthcare Risk Management. (2015). Risk Management Poised to Grow as Healthcare Evolves. Biomedical Instrumentation & Technology, 49 (6), 433 – 435. doi:http://dx.doi.org/10.2345/0899-8205-49.6.433
Carroll, R. (2013). Risk Management Handbook for Health Care Organizations. San Francisco: Jossey-Bass – A Wiley Imprint.
Cole, S. A., Chaudhary, R., & Bang, D. A. (2014). Sustainable risk management for an evolving healthcare arena. Healthcare Financial Management 68 (6), 110-114.
Information Systems Audit and Control Association. (2013). COBIT 5 for risk. Rolling Meadows, Ill: ISACA.