What Is the Purpose of Risk Management and What Are Its Goals?
• Define How the Goals of Risk Management Impact the Health Care Facility. • Tips for Structuring an Effective Risk Management Department. • Questions. • The Purpose and Goals of Risk Management in the Health Care Setting • Risk Management in the Health Care Organization • Risk Management was introduced into the health care industry in response to the “malpractice crisis”. • Hospitals were facing higher settlements and more plaintiff verdicts. • Higher insurance rates. • Decreased availability of some specialties. • Risk Management • “… the process of making and carrying out decisions that will assist in the prevention of adverse events and minimize the effects of those events. • Risk Management • Two terms prevalent in risk management literature as defined by the International Risk Management Institute, Inc. (1991), are: • Risk : “Uncertainty arising from the possible occurrence of a given event”. • Exposure : “A state of being subject to loss because of some hazard or contingency”. •
