The topic of enterprise risk management (ERM) has been discussed for a long period of time. Many authors choose a variety of spheres, make use of their experience, and share their ideas on how crucial ERM can be. Still, not much attention is paid to ERM in terms of health care organizations (Carroll, 2011a). The point is any aspect of ERM has to fit an existing organizational business model, culture, and strategy (Carroll, 2011b). A properly developed ERM program can influence any health care organization in a variety of ways: it helps to analyze and evaluate the risks from legal, financial, cultural, and medical perspectives, determine the risks based on terrorism, and understand patients’ and healthcare workers’ needs in regards to the ethical standards (McWay, 2014). Roberta Carroll is an expert in ERM programs’ development in terms of health care organizations; she offers to create a powerful ERM program explaining its implementation process, assessment, and mapping, underlying the benefits and challenges that can take place, and focus on the necessity to continue working in the chosen sphere.
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It is not a secret that a health care sector undergoes a number of changes day by day (Bradford, 2012). New technologies, circumstances, and changing demographics make all health care organizations think about the improvements. Still, as a rule, any kind of improvement is a challenge. Carroll (2011a) says that it is not enough to identify the risks any health care organization may suffer from. It is more important to prioritize, monitor, and map them to enjoy the benefits of the program offered. ERM helps to understand the nature of all possible risks and choose the most appropriate initiative that can improve an organizational environment.
The essence of any ERM program for health care organizations is as follows: choose one executive-level person, who is able to control the process, identify the members of a working task force, develop a strategic plan, identify the risks and their relations, and rely on credible sources available (Carroll, 2011a). As soon as the first implementation steps are taken, it is necessary to make a risk assessment and map all risks identified.
The impact of ERM on health care organizations is evident. This type of program can help to demonstrate an organizational compliance with the current governance, report on the requirements that promote changes, affect and improve the organizational culture, promote behavioral enhancement, underline the possibility of opportunities’ growth, and explain how it is possible to decrease the cost of risks (Carroll, 2011a). Besides, operational efficiencies are improved, and a health care organization starts working more effectively. Though there are some challenges while developing a necessary program like a lack of time and education, poor knowledge of ERM basics, and inabilities to get access to reliable resources, the benefits are overwhelming.
In general, ERM has a considerable impact on health care organization that cannot be neglected. Many healthcare workers suffer from the inability to identify the risks beforehand and make the necessary adjustments in time. Still, not all of them are able to speak about their needs directly. Therefore, the topic of ERM in terms of health care organization is not as developed as it should be. The ERM process is complicated indeed. A number of people should be involved, and many steps should be taken. It is necessary to help health care organizations demonstrate their potential and readiness to cope with the internal and external risks.
Bradford, D. (2012). The changing role of the healthcare risk manager. Advisen: Insurance Intelligence. Web.
Carroll, R. (2011a). Enterprise risk management: The impact on healthcare organizations. In B.J. Youngberg (Eds.), Principles of risk management and patient safety (pp.115-134). Chicago, IL: Jones & Bartlett Learning.
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Carroll, R. (2011b). Risk management handbook for health care organizations. San Francisco, CA: John Wiley & Sons.
McWay, D. (2014). Today’s health information management: An integrated approach. Clifton Park, NY: Delmar.