Explain how enterprise risk management is or is not different from basic risk management.

Enterprise risk management can be explained to mean the effected process by an entity’s management, board of directors, as well as other key personnel with an objective of increasing the organization’s profitability via creation of single view to all risks, whether internal or external. Then executive level management strategy is established to counter them all. Key features associated with Enterprise Risk Management incorporate multiple risk analysis throughout the enterprise instead of detached risk silos (Brannam & Taylor, 2006). The corporate goals get achieved through risk management elevation as the strategic partner. Enterprise risk management differs from basic risk management in that the basic inculcates the periodization of risks. It means that, here, risks get classified into risk silos instead of viewing them from one angle. The basic gives priority to those risks with highest occurrence chances. In enterprise risk management, there are no priorities. Risks are treated equally plus similar treatment in the management. The fundamental features of enterprise risk management reveal its uniqueness; they incorporate multiple risk analysis rather than isolated risk silos in basic management. Therefore, the difference in the two is evident. However, they are comparable in that both deal with risk management.

Explain figure 5 on page 9 of the Brannan and Taylor paper on ERM

The figure represents the ERM fusion model that incorporates the JCAHO’s first ten items that can aid make, as well as negatively impact a hospital. Healthcare organizations should always ascertain promotion of culture of wide risk management in enterprises. They should as well set objectives that are measurable, aligning them to organizational goals. The figure indicates that the gradual incorporation and application of ERM process in the healthcare sector can guarantee accreditation maintenance. The inside section shows elements such as communications, medication safety, infection reductions, reconciling medications, slips and falls, and patient identification that can built a hospital should they be maintained. The first ten items of the model that incorporate; improper storage, expired medications, confidentiality violation, and unfamiliarity with vital procedures among others are the falling point in hospitals.

Explain Figure 2 –Risk Heat Map- on page 6 of the University of Regina document.

Risks in various organizations result in negative outcomes. The risk assessment in organizations is vital since it does communicate the mitigation alternatives, as well as inform senior management on matters regarding risks. Risk assessment is done using a heat map indicated in figure two. The figure represents a (3*3) heat map. The horizontal axis shows the likelihood that a given risk may occur within an organization to become a problem. The vertical axis indicates the probable impact the risk will cause on the objective that will not get achieved in the case whereby it fails to come into existence. The heat map has colors that are used in showing the risk areas. The colors do contrast with assorted s or usage. For instance, boxes with green are located in the lower space. Yellow ones are sited in the medium risk space of the heat map. Whichever location the boxes get placed within the risk heat map reveal or explain risk level. Risk calculation is solved via multiplying the impact with likelihood or the probability (prospect) of risk occurrence. For instance, high impact (3) multiplied by probable likelihood (3), the result is 9. The digit nine lies on a red box. Red boxes are in high-risk zones of the risk maps meaning high risk.

Use five of the ten JCAHO’s top ten actions that will make or break you (Brannan & Taylor) and analyze them according to the criteria in the Risk Heat Map (Figure 2 University of Regina).

Improper storage can be categorized as possible likelihood, and potential impact becomes medium. The resulting risk outcome when the likelihood 2 is multiplied by two, is four (4), which is in medium risk zone. The action taken is proper storage of medical equipment. Expired medication can be categorized remote likelihood since there is less supply of medication around the planet. The potential impact of the same is low hence the effect lies in low-risk zone painted green. The action by management here is stocking medication after consideration of stock turnover. Confidentiality violation refers to revealing a patient info by practitioners without owners consent. Some practitioners happen to fail on duty via presentation of patients’ private data to other persons. This is a familiar thing taking place within the industry. The occurrence likelihood of the confidentiality violation is probable while the potential impact is high. Consequently, the risk comes within the high-risk zone with a red box. The action a hospital management can take is administration of punishment to violator such as salary reduction to negatively reinforce the conduct. Unfamiliarity with crucial procedures is also a part of the items that can break a hospital. For instance, practitioners with limited comprehension of what is required to be done resulting from factors like inadequate training. This is ranked at probable likelihood with high potential impact should they happen. The resulting figure lies within the high risk-zone. The action needed for barring the risk is employing many year experienced staff. It means acquisition of staff that have acquired training for long and worked elsewhere. Non-existence documentation as a risk can be classified under remote likelihood and low impact potential. It is inconsequential. The resultant of the two is located in a green box. The risk category is in low-risk zone. The action necessary to bar this risk is proper and safe document recording, as well as storage. Backup plans must get established and competent staff with necessary equipment granted the task. This ascertains suitable documentation procedures are observed. The issue resolved in time to bar hospital cessation steering to unprecedented loss.

References:

Brannam & Taylor, (2006). A Model for Enterprise Risk Management Within a Healthcare Organization. American Society for Safety Engineers Publishers

   HYPERLINK “http://en.wikipedia.org/wiki/Committee_of_Sponsoring_Organizations_of_the_Treadway_Commission” o “Committee of Sponsoring Organizations of the Treadway Commission” Committee of Sponsoring Organizations of the Treadway Commission. (2004).  HYPERLINK “http://www.coso.org/Publications/ERM/COSO_ERM_ExecutiveSummary.pdf” “Enterprise Risk Management — Integrated Framework: Executive Summary”

Enterprise Risk Management Committee (May 2003). HYPERLINK “http://www.casact.org/research/erm/overview.pdf” “Overview of Enterprise Risk Management” (PDF). HYPERLINK “http://en.wikipedia.org/wiki/Casualty_Actuarial_Society” o “Casualty Actuarial Society” Casualty Actuarial Society