Risk Management healthcare organizations

Enterprise Risk Management in healthcare organizations

In comparison with non-healthcare businesses, enterprise risk management is particularly more important in services based healthcare organizations. Non-healthcare businesses focus on managing risk with the aim of preventing and mitigating against financial losses (Arena, Arnaboldi, & Azzone, 2010). There is no doubt that services based healthcare organization also need to protect itself against financial loss, but risk management also extends to the safety of the patient within the care of the healthcare organization (Arena, Arnaboldi, & Azzone, 2010). Risks in serviced based healthcare organization is usually a matter of life and death due to the high stakes the healthcare organization faces.Risk Management healthcare organizations

Service based healthcare organizations are vulnerable to big settlements and more plaintiff claims, which affect insurance rates. Enterprise risk management for service based healthcare organizations is no longer focusing on protecting their financial interest, but also the interest of their clients through proactive risk management (Duckert, 2010). For product based non-healthcare organizations, decentralize reporting system is the key to success. This means that non-healthcare organizations do not have to share information amongst the departments to reduce risk. However, service-based healthcare organizations have to reduce patient risk, cut cost and improve efficient through centralized reporting system via enterprise risk management (Duckert, 2010).