Annotated Bibliography Assignment

COMMUNICATION BETWEEN THE EMPLOYEE AND THE EMPLOYER IS IMPORTANT WHEN IMPLEMENTING ERM IN HEALTHCARE ORGANIZATIONS

THE HEALTHCARE CULTURE AFFECTS THE IMPLEMENTATION OF ERM

a. Culture

1. The healthcare organization culture should support the Enterprise risk management strategy.

2. Organizations that adopt cultures for example unfairness, fear and allow disruptive behaviour are not ready for the implementation of ERM.

b. Strategy

1. A defined strategy will enable the implementation of ERM.

2. Strategic plan in the healthcare industry should cover six months to two years.

c. Communication

1. For effective implementation of ERM communication and education plan is important

2. The employees need to be educated on ERM.

Creating a connection

Culture

For the Enterprise Risk management to be implemented in the healthcare one of the key elements to consider is the culture of the organization. The governing body should ensure that the culture of the company will support the ERM program, (Meulbroek, 2017). If the healthcare engages in tactics that are not favorable to a learning environment, practice fear, employees are not treated fair and just. That means that the company is are not ready for the ERM program. The implications will be that ERM program will fail.

Strategy

A well-defined strategy or plan will be effective in the implementation of the ERM program. A strategy is a long-term plan that is used to achieve a particular set goal or objective. Historically, companies used to draft 5 years to 10 years’ strategic plan. However, today due to the rapid shift and complexity of the healthcare industry strategies cover six months to two years, (Olson & Wu, 2015). If the healthcare does not set a clear and well defined strategy. Then the implementation of ERM will fail.

Communication

Before the implementation of ERM, it is important to educate employees about the program. Communication and information channel should be in place to ensure that everyone in the company is well aware of the risks and the actions needed to be taken to mitigate the risk, (Carroll, 2016). The communication channel will also enable employees to be updated on the program progress. If the healthcare employees are not trained and proper channels of communication are not used then the implications or there is a high possibility that implementation of ERM will fail.