PM FPX 4060 Assessment 4

Risk Management Policy and Procedure

PM FPX 4060 Assessment 4:Purpose Statement

Attainment of safety and quality goals is central to the success of the organization, and the risk management program is tasked with ensuring this process. A good risk management program enables the organization to identify and manage the numerous risks to which it is exposed and thus achieve a balance between exposure to risk and the ability of the organization to determine its strategic goals.

Key Risk Management Terms

• Risk Prevention: Risk prevention implies anticipatory steps against the occurrence of possible risks. Prevention is one of the integral components of the risk assessment. For instance, workers are also responsible for prevention or removal of risks at the workplace. Having realized a hazard and its associated risks, particular control measures must be implemented. These are risk avoidance, accepting the risk, minimizing the risk, controlling, or transferring a risk. A good example of avoiding risks in a hospital is having staff wear hand sanitizer before entering the patient’s room to avoid spreading germs.
• Risk Reduction: Risk reduction is aimed at reducing the probability and the magnitude of the losses that may happen. An illustration of risk reduction would be an investor considering not investing in an oil corporation due to it being subject to credit and political risk.
• Compliance with Laws and Regulations: Compliance with laws and regulations involves compliance with laws and regulations to which healthcare organizations are subject. Some examples are the Health Insurance Portability and Accountability Act (HIPAA), the Affordable Care Act (ACA), and the Health Information Technology for Economic and Clinical Health Act (HITECH). Patient safety is necessary in order to provide quality care. For instance, tangled or lengthy bed cords are a risk, and preventing these risks decreases the likelihood of patient harm.
• Adverse Events: An adverse event is a negative incident causing patient harm during medical treatment regardless of whether it can be avoided or not. Developing a rash on the patient’s skin or getting involved in some hazardous situation like gas leakage is an adverse event.
• Near Miss: A near miss is an incident that might have caused injury but did not. A good example would be an error in medication caught before administration; this is a near miss.

Major Risk Categories and Risk Identification Techniques

Severe threats to healthcare organizations exist in many categories, such as cybersecurity, compliance, physical risk, healthcare disease, and privacy. For instance, cybersecurity seeks to protect electronic information from unwarranted revelation or access. Medical records should be confidential, integral, and accessible for the sake of patient safety. Coding errors may result in decreased payment, fraud, or fines, however. They should be avoided in an attempt to protect patient information and avoid financial loss.

Role of the Risk Manager in Program Implementation and Compliance

Risk managers have a significant role in ensuring the successful operation of a risk management program. They make sure that the organization is current with regulatory and legal updates, especially patient safety. Risk managers also train employees in up-to-date policies and procedures to ensure patient safety and quality care.

Part 2 – Application of Risk Management Principles to a Specific Incident

Risk Description

In the management of [specific risk chosen in Week 2 Assignment], it is necessary to explain the possible risks to the organization, patients, and staff. For instance, failure to control [specific risk] can lead to [possible consequences]. To control this risk, the organization can adopt a range of measures, such as [order of risk control measures]. The rationale for these measures is because they can avoid or reduce the aforementioned risk.

Evidence-Based Risk Management Strategies to Reduce/Eliminate Risk

Application of evidence-based best practices constitutes the essence of reducing the identified risk. As implied by literature, [specific strategies] have worked in such scenarios. Application of these strategies includes taking the following steps: [steps to eliminate risk]. These steps will assist the organization in controlling and mitigating the risk, enhancing overall safety and compliance.

Importance of a Risk Management Program

A risk management program is necessary for healthcare organizations since it promotes patient safety and reduces liability. Some of the most important components of such a program are [list key elements]. These components are necessary since their lack can lead to [organizational repercussions]. Without a proper risk management program, healthcare organizations can be at greater legal risk, and patient care can be compromised.