Chapter 19
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Chapter5Slides.pptxITS 835 enterprise risk management Chapter 5
ERM in Practice at the University of California Health System
introduction
University of California’s ERM
Technology
Premium rebate program
Professional Liability Prescription Program (PLPP)
ERM and the Center for Health Quality and Innovation
Protected health information value estimator
PHIve
University of California’s erm
University of California (UC) Health System
Clinics, medical centers, schools
Over 3 million patient visits annually
UC Office of the President’s Office of Risk Services
Responsible for ERM
UC formally adopted COSO Integrated Framework in 1995
Committee of Sponsoring Organizations Internal Control
Newly hired Chief Risk Officer (CRO)
Experienced in ERM from industry
Key Performance Indicator (KPI)
Critical to ERM foundation
TECHNOLOGY
UC’s approach incorporates technology
ERM information system (ERMIS)
Initial phases
Simple risk assessment tools
Dashboards
Control, mitigation, monitoring, survey
Dashboard system
Based on KPIs
Visual indicators
ERM PROCESS
ERMIS DASHBOARD
UC MMR (My Managed Risk) PortaL
UC’s Approach to Evaluating Incidents, Events, and ClaimS
PREMIUM RATE PROGRAM
Program to reduce frequency and severity of loss
Professional Liability Prescription Program (PLPP)
Encourage risk reduction initiatives
Aimed at reducing cost of risk
Rewards units for implementing effective initiatives
Annual rebates for initiatives that work
Driving concept - Everyone is a risk manager
ERM and the Center for Health Quality and Innovation
Joint venture to award up to $8 million
Reduce risk of clinical harm to UC surgery patient
PHIVE
Personal health information (PHI)
UC asked Bickmore to develop a software tool
Estimates the value of PHI
PHI value estimator (PHIve)
PHIve steps
Process determines the impact of PHI breach
Repercussions
Reputational
Financial
Legal and regulatory
Operational
Clinical
SUMMARY
Risk is a part of all organizations
ERM assists organizations in managing all risk
UC deliberately advanced ERM to reduce overall risk
UC Office of Risk management updates risk plans in an ongoing effort
Technology is a cornerstone of UC’s ERM
