Roles Of Risk Management In Health Care

1039 Words 5 Pages
In business studies, risk management refers to the projection and assessment of financial threats plus the identification of procedures to eliminate or eradicate their impact on an organization. In this evolving world, taking risks is mandatory for the growth and development of any business. However, the risks taken might have impacts on the future of the business. The impacts can either be positive or negative. Regardless of the nature of impact, it is the role of the organization should come up with holistic ideas to counteract the impacts in the favor of the organization. Because risks are inherent in all we do, the role of risk professionals cannot be understated in any organization. Risk roles are diverse and range from banking
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In order to function properly, the team should employ effective and efficient measures of assessing the events. There are five major benefits of effective risk management. First and foremost, the organization has to be compliant. This means that the governing body should follow all rules and regulations required by the government. Regardless whether an organization is in the private or public sector, all licenses, medical coverage and other important documents must be up to date so as to eliminate loopholes in risk management.
Secondly, risk management helps in identifying system and provider weakness before an adverse event occurs. An effective risk management system acts like the military since it provides first line of defense to the organization before the disaster strikes and reducing the impacts of losses in case the disaster strikes.
Other than that, risk management provides the organization a cushion in case an event occurs. Since the organization will have a list of potential calamities set to strike the organization, they will be prepared to take the safety measures to iron out the risks in a more mature and timely manner that will benefit the
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Owing to the predictions, the employees might lose focus and motivation in anticipation of the risks predicted. The risks might involve introduction of new measures that might interrupt normal routines and therefore force the workforce to adjust. These adjustments can cause lack of motivation or rebellion in some cases.
Importance of Risk Management in an Organization Risk management creates awareness to possible threats. Through the aid of the program, an organization can be able to forecast any abnormal operations that might lead to loss of assets. This way, the organization gets ample time to correct the problem. Secondly, risk management can turn possible threats into an onset of opportunities. Through quality assessment and consultation, the threats can be turn around to create massive opportunities to the organization. The program also indicates the all the possibilities of the business operations after the catastrophe.
Finally, risk management promotes cohesion and team building amongst the departments in an organization. When disaster strikes, it is very essential for all departments to work hand in hand to correct the defects. In this case, every individual in the organization will be involved since everyone is aware. Imagine the impact a catastrophe can cause an organization where everybody works independently and teamwork is

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