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Running head: ENTERPRISE RISK MANAGEMENT

Enterprise Risk Management
Student’s Name
Institutional Affiliation
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Enterprise Risk Management
Introduction
Risk management is a significant aspect of healthcare organizations. Notably, these
organizations rely on risk management teams to handle patient and employee-related risks. Risk
management is classified into traditional and enterprise risk management (Simona-Iulia et al,
2014). Although some healthcare organizations still depend on traditional risk management,
others have shifted to Enterprise Risk Management (ERM). ERM is a superior account of
traditional risk management that allows healthcare organizations to deal with diverse risks that
emerge and tend to interfere with operations. Notably, proper implementation of ERM is vital to
ensure it sufficiently address widespread challenges in healthcare organizations. ERM is
considered as an enterprise-level assessment that quantifies and manages risks while traditional
risk management is a silo technique that enables organizations to address one risk at a time
without any consideration of their interrelationships (Grace et al., 2015). Healthcare
organizations have since shifted to ERM to be able to address an array of risks and improve their
outcomes along with that of their clients. Risk management is a viable approach for healthcare
organizations as it enhances their success by improving performance. Also, ERM creates value
for the organization and ensures the working environment is favorable for employees and
patients. ERM is an accepted approach in dealing with organization risks according to the COSO
ERM Framework Study (Kerstin et al., 2014). Today, ERM is the most effective way to deal
with organizational risks, if it is properly implemented as any failure is likely to disrupt
organization operations. What is more, staff must be well trained regarding ERM implementation
so that they understand the risks that are related to the enterprise and eventually minimize those

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risks. Healthcare organizations adopt ERM to deal with risks associated with clinical and patient
safety, technological and human resource risks.
Risk One: Clinical and Patient Safety Risks
These are risks that are related to the provision of care to patients, and other services to
clients in the healthcare system. Patient safety encompasses the protection of patients by
healthcare organizations from injuries, accidents, infections, and errors. Notably, patients die in
hospitals due to needless accidents and errors. As such, it is the responsibility of healthcare
organizations to prioritize patient safety as a means to improve patient outcomes. Clinical risks
entail the failure to adhere to evidence-based practices that are meant to improve patient
outcomes and care processes by applying current knowledge to common care decisions (Fraser et
al., 2014). The extent of providing care depends on evidence-based practice as it has a higher
likelihood of ensuring that the intended health outcomes are achieved. The barriers to effective
implementation of evidence-based practice comprise a shortage of staff, in this case, nurses,
heavy workload, and limited access to the internet and inaccessibility to library information.
Medical errors could be attributed to human error or systemic issues, but they are likely to cause
severe injuries to patients and death. Hospital-acquired conditions (HAC) contribute to patient
and clinical safety risks as they subject patients to undesirable situations during their stay in a
medical facility (Simona-Iulia et al., 2014). These infections or conditions are attributed to
negligence by a healthcare professional to centralize patient data for easy reference. The
exposure to new infections among patients as they recover is due to inconsistent or unreliable
data to track their progress before discharge.
Impact of the Risk on the Healthcare Organization

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Clinical and safety risks have a considerable impact on healthcare organizations. Notably,
the evidence-based practice seeks to offer the most effective care to improve patient outcomes
and increase organizational performance. The failure to adhere to evidence-based practices
subjects the organization to limited resources that eventually influences the decisions regarding
funding health services. A lack of resources in healthcare organizations challenges the provision
of quality care to patients, hence poor performance and inefficiencies in the delivery of care
(Carroll, 2016). Medication errors impact healthcare organizations since they are preventable
mistakes that can result in severe psychological, emotional and financial stress. Healthcare
professionals are expected to be competent as instances of wrong prescriptions, incorrect
calculations of dosages and a lack of knowledge about the provision of care negatively impact
the performance of healthcare organizations.
Further, improper medication reconciliation methods and failure to double-check procedures
result in inefficiencies in service delivery as more resources are committed to those errors while
other areas have unlimited resources to operate. HAC impacts organizational performance and
reputation because patients are likely to lose trust with the quality of care that is administered.
Failure to link patient data to monitors, clinical information systems and medical devices makes
them susceptible to acquiring new infections. Moreover, the connectivity is helpful for clinicians
as they can easily recognize new infections and take appropriate measures to centralize data.
Further, a lack of computerized checklists exposes patients to new infections as physicians and
nurses are more likely to accidentally forget to adhere to best practices, especially in crisis modes
when many patients seek their attention (Hancock, 2016). The impact is harmful to the
organization’s reputation as a result of incompetence, improper data use and inability to
understand patient needs.

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Recommendations
ERM emphasizes a culture of safety in healthcare organizations. Initially, the focus was
solely on clinical issues along with minimizing damages associated with the widespread medical
malpractice and professional liability. Today, the increasing risks in healthcare necessitate risk
management departments to expand their role in the organization (Kerstin et al., 2014). A safety
culture within healthcare organizations is a significant component that reduces errors and costs
alongside improving the overall quality of care that is administered. Healthcare is essentially
multifaceted, yet healthcare organizations are required to operate similarly to highly reliable
organizations that perform consistently according to specified standards and expectations while
reducing or eliminating adverse events. The implementation of ERM to address clinical and
patient safety risks in healthcare organizations should begin with a clear goal that is specific,
achievable, measurable, timed and realistic. In so doing, the organization commits to a culture of
safety at all levels from the caregivers at the frontline to departmental executives and managers.
The acknowledgment of the organization’s high-risk nature enables healthcare facilities to
improve systems that reduce medical errors and prevent acquired infections during patient stays
in the hospital.
ERM enhances a comprehensive framework that ensures a risk management decision is
made to maximize value creation and protection as well as managing uncertainty and risk to
ensure total value is achieved in service delivery (Hilliard, 2012). The comprehensive framework
entails the collaboration of healthcare professionals to ensure compliance with patient safety
guidelines and quality care. Value protection enables healthcare organizations to develop a
clinical structure that focuses on quality outcomes, efficiency in resource use and patient safety.
Healthcare organizations can also thrive as a result of value creation strategies that improve the

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return on investment, increase market share and enhance patient satisfaction by implementing
evidence-based practices. Uncertainty in healthcare organizations can be managed by reducing
risks associated with medical errors, HAC and evidence-based practice.
ERM prevents these risks by ensuring that adverse events are monitored and reported by
healthcare professionals (Carroll, 2016). The trends of patient and clinical safety are also
prepared s that the quality assurance department can evaluate and institute measures to eliminate
the risks. Healthcare organizations can measure and review data using metrics that range from
patient complaints to patient falls and infection rates. In so doing, the organization reduces
variability while promoting standardization of operations.ERM should be implemented to reduce
costs, create value and improve patient outcomes (Fraser et al., 2014). Moreover, satisfied
patients tend to trust the healthcare facility, which increases referrals and reduces turnover rates
and costs. Notably, clinical safety enables healthcare organizations to maintain the standards of
care due to improved worker satisfaction; reduced costs associated with worker compensation
and lost workdays besides improved worker retention.
Risk Two: Human Resource Risks
Human resource risks entail the challenges of attracting, developing and retaining key
individuals. Healthcare organizations deal with concerns related to having the right personnel
and whether the person has the right roles that are consistent with their strengths. The
organization’s workforce, in this case, is a significant risk in healthcare organizations as a result
of today’s economic markets and tight labor. Human resource risks encompass employee
retention, selection, staffing, turnover, absenteeism, productivity, compensation, and burnout.
Healthcare organizations are faced with a challenge of talent shortage in contemporary practice
(Kerstin et al., 2014). While the completion in the medical field is immense, healthcare

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organizations still find it difficult to employ the right personnel. The consideration of patient
safety and care makes it more difficult to recruit and retain a competent workforce. Staffing
issues arise when the recruits lack adequate training and skill for the task. The validation of
licensure and certifications at the early stages of recruitment must be detailed to ensure the right
people are considered for the task. Further HR managers in healthcare organizations must
oversee ongoing training, certification, and reinstatement of staff. The evaluation is done based
on competence related to patient safety and care. Notably, workers who associate frequently with
patients may cause harm, which makes background checks necessary and rigorous to prevent
potential liability and problems (Stevens & Noble, 2017). Burnout in healthcare organizations is
a human resource risk that subjects healthcare professionals to stressful working conditions. The
major concerns are usually increased workload, low compensation and a lack of welfare
programs to address their grievances. Burnout influences the quality and delivery of care and
increases the chances of medical errors.
Impact of the Risk on the Healthcare Organization
Human resource risks impact the performance of healthcare organizations. Healthcare
professionals must be adequately trained to meet the standards of practice and increase the
efficiency and effectiveness of healthcare systems. However, this is not always the case because
healthcare organizations record high turnover rates as a result of burnout, and other unfavorable
working environments. Healthcare organizations strive to create a balance between employee
performance and patient outcomes (Grace et al., 2015). The inability to retain its workforce is
attributed to a shifting working culture that healthcare professionals may be unfamiliar.
Healthcare organizations may not adhere to the needs and concerns of the workforce resulting in
high turnover rates and low retention rates. The growing need for a talented workforce is affected

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by inadequate training of healthcare personnel that result in unpreparedness for the tasks.
Further, healthcare professionals tend to regret their choice of career because of burnout that
limits their ability to perform and meet organizational expectations. Job dissatisfaction
guarantees poor performance in healthcare organizations (Carroll, 2016). What is more, it is not
only the staff members that suffer but also patient outcomes that are significantly impacted by
incompetent staff. The need to understand the warning signs associated with...