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Running Head: ROLE OF ENTERPRISE RISK MANAGEMENT IN HEALTHCARE

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ROLE OF ENTERPRISE RISK MANAGEMENT IN HEALTHCARE

Introduction

The management of healthcare risks involve processes as well as systems that are applied by the healthcare providers to mitigate uncover as well as put preventive measures that may be caused by healthcare risks. The idea of management of healthcare risks is generated from the basic sense of saving lives and enhancing the care taking standards. The proper identification and eradication of these risks to the maximum level requires digital as well as management techniques. In healthcare, risk management complies administrative and clinical systems, processes as well as reports that are employed to assess, mitigate, detect as well as prevent risks (Levett, Fasone, Smith, Labovitz, Labovitz, Mellott & Dotan, 2017). Through the application of risk management practices, healthcare providers as well as institutions systematically and proactively be in a position to safeguard the safety of patients and the assets that belong to the caregivers, the healthcare organizations' market share, brand value, community standing, and reimbursement levels.

Value and purpose of risk management

Since the application of risk management in healthcare, the main agenda has been the protection of the patient’s information as well as the reduction of any medical records. It is necessary to make sure that reduction of medical records should not lead towards any other economic or social problem. This was as a result of the above-mentioned factors that jeopardized the ability of organizations in achieving their set mission as well as financial liability protection. With the increased rate of technology advancement, an increase in the concerns of cybersecurity, the rapid growth of medical science, as well as the increased rate in regulatory changes, political changes, and legal climate, the management of health risk has become more complex with time. Additionally, financial risks are increasing with the increased rate of electronic payment for services to healthcare providers. When the risk management of healthcare took shape of a bigger picture and as a separate narrative, things were bigger but easier to handle. With the advancement in the field of digital and electronic technology the problems and cybercrimes also became advanced. Recent cases showed that unauthorized parties took advantage of digital systems due to which even the risk management in healthcare department had to be made electronically compatible with the data of both the patients and care takers in any particular organization.

Key components of performing management of risks in healthcare

Identify risk; risk management is mainly aimed at managing new risks as well as uncertainties which include even the minor probabilities of risks to be recognized and handled with great consideration, it has become a challenge to identify all the risks that affect the healthcare sectors with the increased evolution of technology (da Silva Etges, Grenon, Lu, Cardoso, de Souza, Neto & Felix, 2018) (Levett, Fasone, Smith, Labovitz, Labovitz, Mellott & Dotan, 2017). But through the application of data science as well as machine learning, an organization providing healthcare services may be in a position to identify at least 98% of the risks and be able to take early mitigation steps. Digital forensic also plays a vital role in the modern-day risk management as it is obvious to focus on recovery and investigation of artifacts found on digital devices which store the data of the patients. It is a crucial aspect in terms of laws and business as well. Healthcare is contemplated to be one of the most attracted targets for cybercriminals due to its intrinsic susceptibility.

Prioritize and quantify risk- once a risk has been identified

It is always important to score, rank and prioritize the risks. One of the basic concerns of healthcare organizations include the identification of circumstances that can put a patient's life to risk be it a clinical, regulatory, environmental or privacy risk. All these risks and their management procedure constitutes a major part of risk management in healthcare. This procedure follows the impact as well as the likelihood of the identified risk. Then resources are allocated based on the priority. This is made possible through deploying risk heat maps and matrices which will help in enabling collaborative decision making and communication (da Silva Etges, Grenon, Lu, Cardoso, de Souza, Neto & Felix, 2018).

Investigate and report events- this involves following and establishes a plan which ensures that all the protocols or hierarchy of communication is followed and that the right person responsible receives the report at the required time which again includes a privacy or a regulatory risk which has to be taken care of that may be life threatening or economically harmful to anyone in the whole chain. The cyber security and digital forensic techniques are used in this investigation and eradication of risks (Levett, Fasone, Smith, Labovitz, Labovitz, Mellott & Dotan, 2017). Through reporting, the right measures will be taken at the right time to reduce the spread of the risk. The correct completion of this investigation may be a cause of the decrement in death rate.

Perform compliance reporting- this includes coding and documenting critical medical information such as patient injuries, medical errors as well as workplace injuries. The information that may attract cybercriminals needs to be encoded carefully and perfectly with a high-level security protocol as well as the proper decoding and backup system that may be sufficient and reliable throughout the whole process.

Other components include capturing and earning, uncovering latent failures deploy analysis for incident investigation as well as finding the best balance, transfer, retention as well as financing risk management practices (da Silva Etges, Grenon, Lu, Cardoso, de Souza, Neto & Felix, 2018).The health risk management plan may have several components including education and training as with the ever-growing technology and cyber systems the healthcare staff has to keep up with the technical aspects of the field which may include computing and compilation of multiple digital devices, patient and family grievances, purpose, metrics and goals, contingence plan, communication plan, the reporting protocols, and response and risk mitigation plan. The financial collapsing of the system can affect all the safety and management protocols as well as affect the education and training of the staff.

References

da Silva Etges, A. P. B., Grenon, V., Lu, M., Cardoso, R. B., de Souza, J. S., Neto, F. J. K., & Felix, E. A. (2018). Development of an enterprise risk inventory for healthcare. BMC health services research, 18(1), 578.

Levett, J. M., Fasone, J. M., Smith, A. L., Labovitz, S. S., Labovitz, J., Mellott, S., & Dotan, D. B. (2017). Enterprise Risk Management in Healthcare. In Surgical Patient Care (pp. 67-86). Springer, Cham.