The Importance Of Risk Management

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Risk Management is very beneficial within todays healthcare organizations.
At times, we are seeing more organizations within the healthcare sector deal with the aspects of crisis. Much of this is due to malpractice and the focus that the government has places on the quality of care and safety guidelines that these facilities must agree upon to receive coverage. Within the guidelines of Florida alone if an organization should many malpractice suits those facilities might not gain licensure which could have an adverse effect on services to their patients and cause them to be at risk. Therefore, it is beneficial to have effective risk management programs set in place to catch such risk to alleviate these types of actions from occurring. The article …show more content…

It was not until the mid-1600’s when French mathematicians Blaise Pascal and Pierre de Fermat came up with the idea of risk management and during that time it was only known for insurance. Its only use during that time was for what is known as bottomry which is a type of marine insurance which covered vessel owners so that could borrow money to buy cargo and if for some instance the ship was lost at sea the owner of that vessel would not be held liable to repay back the debt. Coming up toward the twentieth century was when it became into existence. This is when insurance companies encourage businesses to establish quality standards for their products and services. By the late 1900’s quality and risk management standards were made readily assessable to industries and governmental …show more content…

Many healthcare facilities have put in place an effective risk management programs to ensure that quality of care to patients is provided adequately to minimize the legal risk to such providers. Having such a program put in place gives the organization an awareness of the risk areas, the policies that need to be put in place to address the risk, training, monitoring of the risk and a plan to deal with the risk if it were to occur. Therefore, it is important to have a compliant officer on staff within the organization their skillset of risk management adds value to the facility. So having such and effective risk management program put in place can be beneficial by reducing the likelihood of untoward clinical events by production of “best efforts” in devoting resources to care conveying a message to the consumers that excessive punitive damages are warranted in a particular case (Altman,

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