The Role of Enterprise Risk Management in Health Systems Development

Abstract

There are a growing number of issues facing the healthcare industry today that make Enterprise Risk Management, ERM an attractive strategy for managing risks. Examples of such issues are research, regulating issues, loss of accreditation, technology, loss of Federal funding and where the organization was found noncompliant in interim life-safety measures. Given the breath and complexity of potential risks such as these, healthcare organizations require a logical framework for identifying the scope of potential risks, evaluating risks exposures and responding to risks. According to survey results conducted on 150 health workers and administrators, an overwhelming number of respondents (88%) say that enterprise level risk management is more of a priority today and useful in managing risks than it was years ago. Furthermore the data reflects the move from the traditional risk silo approach to ERM in an effort to improve communication on risk management throughout the organizations. By taking a proactive approach to risk management using ERM model, Healthcare organizations will be better equipped to focus on all risks throughout the organization while maintaining patient safety, ensuring compliance and improving their organization bottom lines.