Introduction
Risk management is important as it helps in taking a business through the risk identification process, risk assessment as well as risk resolution in ensuring that an enterprise becomes successful. When preparing a risk management plan, the first step to undertake is to identify the potential risks for the business. Understanding the scope of the potential risks helps in the development of realistic and cost effective strategies to be able to deal with the potential risk appropriately (Wu, Chen, & Olson, 2014). It is also essential to think broadly when considering the types of risks that can affect the business rather than just considering the obvious concerns. In regards to the above information, the paper reviews and analyzes two risk management plans identifying their areas of strengths while also was also identifying their areas of weaknesses and omissions.
An analysis and a review of the risk management plans
The ECRI Institute risk management plan will be discussed. The plan was developed to support the health organization vision and mission in regards to safeguarding patient’s safety and minimizing clinical risk to its employees as well as the potential visitors and investors. The risk management plan is an organizational framework that aids in the development of risk management measures and patient safety initiatives for the organization. The program is important in supporting ECRI Health Institute philosophy stipulating that risk management and healthcare safety is everyone responsibility. The organization risk management plan is well implemented as the structure ensures an appropriate coordination of the plans activities and functions. ECRI Health Institute advocates for the establishment of a just organization culture that calls for the implementations of appropriate evidence-based practices while providing effective options rather than employing a punishment and blame culture. In this type of a culture, environmental hazards and unsafe working conditions are identified easily; patient healthcare delivery errors are reported, and areas of improvement are easily identified.
The other risk management plan analyzed is the Nonprofit National Council Organization risk management plan developed to identify potential organizational risks in ensuring a smooth operation of the organization activities. Nonprofit association aspires to deliver patient care in a manner that protects the safety of the patients, volunteers, and the employees while at the same time safeguarding and lifting the organizational mission in ensuring organizational success. The risk management goals of the organization are aimed at protecting the safety of individuals engaged in delivering or receiving care in the organization as they are regarded as a top priority. The risk management plan is essential as it ensures that the organization provides total quality care to the patients according to the expected standards.
The risk management plan organization, content, and completion
The ECRI Institute risk management plan content stimulates the review, revision as well as the development of new organization protocols that will aid in the identification and mitigation of the identified risks in preventing organizational losses. The patient safety and risk management plan has been well organized and the organization top management has offered great support and commitment in the process. Key definitions have been identified and defined in the risk plan making it quite simple for all to understand the contents plan and objectives. The program goals and targets have been stipulated clearly, and they include improving the safety of the patients continuously, preventing medical errors occurrence, enhancing the employee’s safety, minimizing system breakdowns and reducing organizational losses by proactively identifying and preventing potential risks. The function and scope of the risk management program have been well identified together with the risk management functional responsibilities that need to be undertaken. The committee and administrative structure to oversee the implementation of the plan has also been discussed; therefore, ECRI Institute Patient Safety and risk management plan will be quite useful in risk identification and mitigation.
On the other hand, the Nonprofit National Council Organization risk management plan clearly identifies the risk management goals and principles accompanying the process. Members who are to be involved in the risk management processes have been identified with the responsibility of each team player identified. These include the board of directors, executive directors as well as the risk management committee to be involved. A risk financing strategy has been designated as the organization plans on purchasing an insurance policy for the significant organizational risks that could lead to great organizational losses. The plan has also gone further to provide written employees policies as the managements believes that these policies are fundamental in controlling risks. As part of the risk management process, the organization has adopted a good communication strategy, employee orientation, staff supervision and the use of performance appraisal method for preventing potential risks occurrence. The organization has also identified services and programs to help in risk mitigation such as the emergency, housing, staff training, and counseling programs. The client safety procedures and policies have also been stipulated clearly that the employees need to follow. In maximizing the patient’s safety, the organization has established an emergency action plan as part of the risk management plan. The budgeting and financial management process of the plan are also well discussed. Potential risks that the organization may face have been identified such as facility, volunteer, transport, security, equipment, and system risks with their mitigation plans provided. Nonprofit Organization risk management plan is well detailed, organized, and written to completion.
Weaknesses and omissions
A good risk management plan needs to identify the risks, do a risk analysis and evaluation followed by risk planning and mitigation with the risk monitoring, controlling, and reporting section coming last (Zwikael & Sadeh, 2007). The ECRI Organization management plan has weakness in risk identification, evaluation, and analyses. The risk management plan never identified the significant risks that the organization was facing in enhancing the patient's safety that is an essential element of the risk management plan. Moreover, the section of risk planning was not adequately discussed in the plan. Risk contingency budgeting is also an important part of a risk management plan, and the ECRI Organization risk management plan lacked this section making the process of risk mitigation quite difficult. On the other hand, the Nonprofit Organization risk management plan was quite detailed to the point with all the risk management plan sections. However, key definitions in the plan were not included making it difficult to understand the program aims while the plans objectives were not clearly stipulated. This should have been done to facilitate understanding of the organization’s risk management program (Coulson, 2008).
Importance
The risk management plans discussed in the paper are important for the organizations because they were developed to ensure that the levels of uncertainty and risks that could occur unexpectedly were identified and managed appropriately to ensure organizational success. This enabled the organizations to be able to manage the possible risks by defining the manner in which the potential risks could be contained as well as the likely mitigation costs strategies. This enabled the healthcare organizations to be able to deliver quality care to the patients while ensuring patients and staff safety. Thus, risk management plans are useful tools for reducing and managing projects risks during operation. Risk management planning is, therefore, important as it helps in taking a business through the risk identification process, risk assessment, as well as risk resolution in ensuring that an enterprise becomes successful. These risk management plans are organizational frameworks that aid in the development of risk management measures and patient safety initiatives for the organizations.
Lesson learned
References
Coulson, A. B. (2008). Organized uncertainty: designing a world of risk management. Accounting and Business Research, 38(Book/Film/Article review), 91. http://doi.org/10.1111/j.1467-9299.2008.00756_2.x
Fadun, O. S. (2013). Risk management and risk management failure: Lessons for business enterprises. International Journal of Academic Research in Business & Social Sciences, 3(2), 225–239.
Wu, D. D., Chen, S. H., & Olson, D. L. (2014). Business intelligence in risk management: Some recent progresses. Information Sciences, 256, 1–7.
Zwikael, O., & Sadeh, A. (2007). Planning effort as an effective risk management tool. Journal of Operations Management, 25(4), 755–767. http://doi.org/10.1016/j.jom.2006.12.001
ECRI Institute risk management plan - http://bphc.hrsa.gov/ftca/pdf/riskmgmtplan.pdf
Nonprofit Organization risk management plan - www.niqca.org/documents/Sample-Risk-Management-Plan.pdf
