Importance of Healthcare Risk Management

Risk management is an asset to any industry because of the potentially devastating effects that disasters can have on organizations. In health care, risks threaten administrative and clinical functions. Patients become vulnerable when risks arise. As such, risk management is essential to the health care industry.

Definition

• Risk management is the way that a company identifies, manages, mitigates and responds to risks. A risk management system in place is a preparatory strategy that companies use to hopefully decrease risk potential.

Effects

• If an organization is not properly prepared, or equipped, to manage a risk, there can be negative impacts to patients, as well as their health records, according to Kris Neilsen’s April 2006 article in “Journal of Management in Engineering." This, in turn, can pose a tremendous liability issue to the health care organization overseeing the patient’s care.

Patient Risks

• Patients who visit outpatient medical clinics, or stay overnight at the hospital, can be exposed to risks. When organizations have risk management protocols in place, they can better ensure patient safety.

Technological Risks

• A lot of patient information gets stored in electronic databases. Technological risks can impact the maintenance and security of their confidential records. Consequently, it is important for health care organizations to protect themselves against technological risks and threats.

Structural Risks

• Structural risks can damage facilities, such as hospitals. Depending on the type of damage that is done, patients’ health and safety might be at risk.