Subject Name: Enterprise Risk Management

Enterprise Risk Management ITS 835

Dr. Ronald Menold [email protected]

Chapter 5 ERM in Practice at the University of California Health System

ITS 835

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 Dashboards

UC MMR (My Managed Risk) Portal

UC’s Approach to Evaluating Incidents, Events, and Claims

Premium Rebate 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 patients

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

Chapter 5 ERM in Practice at the University of California Health System

ITS 835