Power Point Slides Risk Management
Financial and Operational Risk
Risk Management System
Rasmussen College
Katie Block, Brittany Barrett, and Amanda McCauley
Module 4 Course Project
| Risk Area | Level of Risk | Strategy (Assume, Mitigate, or Transfer) | Identify, Measure, Monitor, Report | Who is Responsible |
| Ensuring privacy/identity management security | High | Mitigate the resources we should to protect privacy of the company | Security is identified within the company; Measure the amount of security we need to protect the reports of the company; Monitor the security and run tests on the computers for protection; Report with the security reports and discuss if there needs to be any more security implemented | The person responsible for the reporting is the head of the security department of CCH |
| Resistance to change | Low | Mitigate the adjustments needed to make the change more natural and productive | Change is identified; Measure the amount of change that is happening; Monitor the change with reports, research into new programs, and feedback; Report back company with findings and acknowledgement to change and adjusting | The person responsible for reporting the resistance to change risk should be supervisor/manager of the team that is in charge of doing research into changing of society |
| Use of estimates | Medium | Assume the preparation are based on GAAP and reported properly in the period | Estimates are identified and are in line with U.S. GAAP; Measuring the estimates per the financial statements; Monitor the estimates and the assets and liabilities; Report the estimates in the financial statements and report revenue and expenses | The person responsible for estimates reporting risk is the CFO |
| Medicare programs | Low | Transfer because of reimbursements from Medicare and Medicaid | Identify the program benefits and reimbursements for the company; Measure the reimbursements and keep track of the cost reports; Monitor the clinical diagnosis and reimbursements with the patients by having a team considering the documents and diagnosis of patients; Report all the reimbursements and finalize settlements and adjust revenue when needed | The person responsible for Medicare risk reporting is the insurance/Medicare department manager/supervisor |
| Human Capital | High | Assume employee turnover, employee qualifications, recruitment, retention and termination | Report all complacency, turnover, occupational fraud, catastrophic workplace events, and negligent hiring or retention (Lower Risk Group, 2013). Monitor by using a checks and balance system and doing audits. Hire outside consultants that specialize Compliance and Ethics (C&E) programs. Invest developing an internal C&E program. Reports on hiring, wages and hours, benefits, employee relations, employee rights, and employee benefits (Floyd, 2011) | The person responsible for reporting is the department head of Human Resources |
| Operational | Medium | Assume insurances of the delivery of care that is safe, timely effective, efficient, and patient-centered within diverse population | Operational is identified within the company. Measured by failure to diagnosis, failure to identify and follow EBM, failure to give timely care. Report with equipment maintenance, business cost and discipline reports, patient feedback cards, and number of referrals (Carroll, 2014) | The person responsible for reporting in the head of each different department and reporting to HR. |
| Hazards (Natural/Business Interruptions) | Medium | Transfer because of reimbursements from insurance policies. | Hazards are identified, within the company, need to monitor for natural disasters, failure to plan/act time. Report the system backup plans and report employee knowledge of how to handle hazard situation (Carroll, 2014) | The person responsible for reporting the potential natural and business hazards are the Board of Directors/CEO. |
| Legal/Regulatory | Medium | Assume the correct steps are in place to ensure all legal areas are being covered | Legal compliance is identified within the company’s law department. Measuring the amount of fraud, theft, embezzlement, HIPAA Privacy and Security. Report back with employment practices, compliance and oversight issues, and level of fraud and theft found to be occurring (Carroll, 2014) | The person responsible for reporting is the CEO, Board of Directors, and legal department. |
| Medical Errors | High | Medical errors includes wrong dosage, deaths of patients due to poor handling or treatment as well as using wrong method of treating patients that lead to another medical conditions (Highland Risk Services, 2014). The medical errors cannot be mitigated by ensuring that error made by personnel is reduced. It entail employing competent personnel in the healthcare facilities. | Expect calls from other human services proficient laborers if orders/medicines are obscured. Actualize a doctor arrange passage PC framework, in inpatient & outpatient settings. The modernized framework have printed duplicates of pharmaceutical requests/remedies and alarms that help screen for dosage limits, medicate collaborations and sensitivities. | Board of Directors, Legal Department, Top Patient Care Executive, HR Executive, CNO |
| Board Composition | Low | The composition of the Board matters since they help to over the operations of the organizations. Therefore, the composition should have personnel from other related industries to help make multi-disciplinary decisions (Sullivan, 2013). Therefore, the risk can be transferred by selecting a competent and qualified board. | Basic measures of value normally incorporate the qualities of the assets in the social insurance framework, including forte board, singular specialists, and a team of professionals, associations and frameworks of care, geographic area, and openness of administrations. They are measures of the assumed limit of the expert or supplier to convey quality medicinal services. | Board of Directors and CEO |
| Transportation- shortage of ambulances and other emergency vehicles | High | Transportation is cornerstone of the healthcare facilities as it can be a life saver. Therefore, the risks of shortage of emergency vehicles like ambulance should be mitigated as soon as possible to avoid deaths of patients caused by lack of transportations (Sullivan, 2013). Therefore, the strategy would be to mitigate it by buying or leasing enough vehicles for any emergency purposes. | Using a framework of wellbeing based multidisciplinary approach - tending to the patient, supplier & open security with far reaching information catch, key roadway security arranging mix, ergonomic and car wellbeing points of view in conjunction with the vehicle and armada security norms advancement - is important to guarantee enhanced results in EMS transport wellbeing. | Manager/Supervisor of Departments, COO, Top Ambulatory Services Executive, |
| High Inflation Rate | High | Health care facilities are expected to deliver health services regardless of the cost. The norm makes health care services to have high expenses that might outweigh the revenue (Highland Risk Services, 2014). The risk can be transferred by ensuring that there is sufficient revenue from patients, services, grants and donors. | A slack economy that left buyers with less extra cash likewise debilitated many individuals from looking for therapeutic care. Chance administration plan ought to concentrate on essentially keeping the human services feasible through the diminishment of money related dangers. Strong arrangements ought to likewise concentrate on securing workers, clients and the overall population from antagonistic or cataclysmic occasions, for example, on account of human services associations, mistakes in pharmaceuticals, conclusion or treatment. | CFO and CEO |
There are many important reasons that reporting on risk is beneficial. It improves the decision making of the team and the company. It reduces the probability and severity of losses resulting from risk management weaknesses. Reporting helps to ensure opportunities for growth are taken up, reduce procrastination as decision makers can be more confident if more information is available, aid strategic and operational planning and strategy setting, and if reported in the right way good risk reporting will reduce information overload (Risk Reporting, n.d.) Reporting is a process of risk management that helps resolve some issues and looks over the monitoring process and see the results of that process. Reporting gives the company a perspective and helps improve in any areas that they felt like they needed to improve in. I think that reporting this to the shareholders in meetings is a good idea so that way you have the appropriate information in front of you and the additional evidence and reports.1
When considering different reporting techniques, I found some interesting steps to help achieve reporting risk. These are more directed to the more IT side of the company but I think that they could also be used in CCH.
Resolution - A risk is resolved, completing the risk action plan.
Consistency - Risk actions are consistent with the risk management plan, in which case the risk plan actions continue as planned.
Variance - Some risk actions are at variance with the risk management plan, in which case corrective measures should be defined and implemented.
Changeability - The situation has changed significantly with respect to one or more risks and will usually involve re-analyzing the risks or re-planning an activity (Microsoft, 2017).2
Risk tracking and reporting is important in the risk management process. Tracking is essential to implementing action plans effectively. Having an effective action plans ensures that things are getting done and if things don’t get done then the company isn’t making progress (O'Donnellan, 2016). Regular reporting enable the company to evaluate and refine cutoff strategies to meet business objectives. It allows the company to measure delinquency of accounts and predict future losses. The reports also help to optimize opportunities for the company (Fair Issac Corporation, 2011).3
In order to be successful with reporting risk, the management of risks is a partner in ensuring all these areas are covered. Specifically for CCH and any hospital, there are four great practices to uses when monitoring and managing risks.
Proactively Perform Risk Assessments: Risk assessments assist to identify risks that are seen to prevent the issues from actually occurring versus reacting to the event that occurs.
Hardware Risk-Mitigating Practices: In order to maintain a low-risk environment, risk managers are required to standardize suitable practices throughout the organization. This helps to educate the staff to incorporate this into their daily workflow.
Prioritize Tasks: Assessment of the risks of all tasks in management and in staff and personnel will help coordinate and organize the reporting process for the organization.
Establish a Just Culture: Setting up the culture within the hospital to educate and ensure that not only managers recognize and report risks, but ensure that staff, providers, and leaders learn to recognize and report seen risks as well. (Rodak, 2013)
The organization as a whole needs to take a part in ensuring that all risks or potential risks are reported and managed in an appropriate way. It is an imperative part to risk reporting to ensure that the management in place is acting and reporting accordingly to policies set in place by the organization. 4
References
Microsoft. Step 4 - Tracking and Reporting Risk. (2017). Retrieve on January 29, 2017 from https://technet.microsoft.com/en-us/library/cc546839.aspx
Risk Reporting. Benefits of risk reporting. (n.d.) Retrieved on January 29, 2017 from http://www.positiveriskmanagement.com/Pages/risk_reporting.aspx
Rodak, S. (2013, April 01). 4 Best Practices for Hospital Risk Management. Retrieved January 29, 2017, from http://www.beckershospitalreview.com/quality/4-best-practices-for-hospital-risk-management.html
1 Completed by Katie Block
2 Completed by Katie Block
3 Completed by Brittany Barrett
4 Completed by Amanda McCauley
