Risk Management Issue
Risk management is the most important part of any organization to face the risks that might arise when a new project started. It should be a first concern when the decision is being made. Risk management is the practice of looking at the exposure to risk and deciding how to best handle that exposure. The idea behind risk management is to decide if the benefit outweighs the risk. This process will help you to identify risks that might normally be overlooked so when things come up, they do not surprise you by having a plan in place on how to solve them.
Risk management would help to identify and then manage threats that could severely impact or bring down the organization. This could be done by reviewing operations of the organization, identifying potential threats to the organization and the likelihood of their occurrence, and then taking appropriate actions to address the most likely threats (McNamara, C., 1999).
Risk management also explores strategies to assess organization's susceptibility to risk. It minimizes adverse impacts of operational risk, market risk, and credit risk on resources, earnings, and cash flows through risk analysis. Organizations should regularly undertake comprehensive, focused assessment of potential risks to the organization. This focused assessment should occur at least twice a year by a team of staff members representing all the major functions of the organization. The assessment should be carefully planned, documented and methodically carried out. Healthcare organizations and facilities are among these organizations, which could benefit from well-implemented risk management. Healthcare organizations are among those organizations that face many risks associated with their operations. Long-term care (LTC) facilities are one of them.
The long-term care industry is in a state of crisis across the nation. An alarming number of states are experiencing dramatic increases for general liability and professional liability (GL/PL)
Risk management would help to identify and then manage threats that could severely impact or bring down the organization. This could be done by reviewing operations of the organization, identifying potential threats to the organization and the likelihood of their occurrence, and then taking appropriate actions to address the most likely threats (McNamara, C., 1999).
Risk management also explores strategies to assess organization's susceptibility to risk. It minimizes adverse impacts of operational risk, market risk, and credit risk on resources, earnings, and cash flows through risk analysis. Organizations should regularly undertake comprehensive, focused assessment of potential risks to the organization. This focused assessment should occur at least twice a year by a team of staff members representing all the major functions of the organization. The assessment should be carefully planned, documented and methodically carried out. Healthcare organizations and facilities are among these organizations, which could benefit from well-implemented risk management. Healthcare organizations are among those organizations that face many risks associated with their operations. Long-term care (LTC) facilities are one of them.
The long-term care industry is in a state of crisis across the nation. An alarming number of states are experiencing dramatic increases for general liability and professional liability (GL/PL)
References: Bourdon, T. W. (2005, April). Long-term care continues to experience the worst liability cost increases in health care. Retrieved June 26, 2005, from http://www.aon.com/about/publications/focus/focus_2005_apr_11.jsp Boxerbaum, E. A., Donaldson, P. (2005, May). Respecting and protecting elders. Healthcare, p. 47-48. Cheeseman, J (2001). National Population Projections. Retrieved June 27, 2005, from, http://www.census.gov/population/www/pop-profile/natproj.html McNamara, C. (1999). Basic Considerations in Risk Management. Retrieved June 25, 2005, from http://www.mapnp.org/library/legal/rskmgmnt.htm