Introduction Financial or technical, commercial or legal, the risk can affect an organization at any given time. Operations and compliance along with laws and regulations input by an organization have an important role in controlling the factor of risk within a project. As Pinto (2013) well noticed, projects tend to operate in an environment composed of uncertainty. There are projects that succeed and others that fail. The difference between these two types of project is given by the plan developed as well as the level of risk. More so, in the event in which the critical path for a project has a high level of risk, the way the resources are used once the risk factor was identified becomes crucial for the success of the project. Risk Management Risk Management is the science that identifies analyzes and responds to the risk factors throughout the life of a project (Pinto, 2013). Before a project is put in place and a plan that goes along created, the Team Management for the project needs to make sure that is identifying and controlling the risk associated with the project. The team needs to consider any unexpected situations that might appear and try to come out with a strategy of mitigation in the event in which the factor of risk is happening throughout the life of the project. At the same time, the management needs to be able to analyze the probability of the risk to happen and the consequences that are taking place once the event took place. Once the factors of risk are identified, the manager needs to make sure if and at which extent the factor of risk is going to impact the critical path of the project. The healthcare industry is focused more on benchmarking and measuring. Therefore, operational efficiency represents a h... ... middle of paper ... ...Feek. Retrieved on November 23, 2013, from http://www.psfinc.com/press/the-role-of-risk-management-in-healthcare-operations *Liebig, H., & Hastings, R. (2009). Reducing risk through mitigation strategies. Applied Clinical Trials, 18(8), 42-45. Retrieved from http://search.proquest.com/docview/201495605?accountid=35796 *Onwuka, O. (2012). Risk Perceptions and Risk Appetite: Role of the Risk Matrix – Vanguard News. Retrieved on November, from http://www.vanguardngr.com/2010/08/risk-perceptions-and-risk-appetite-role-of-the-risk-matrix/ *Pinto, J.K. (2013). Project management: Achieving competitive advantage (3rd Ed.). Boston, MA: Pearson Education, Inc. *Scofield, L. (2011). Assessing Firm Organizational Risk. Retrieved on November 23, 2013, from http://www.cpa2biz.com/Content/media/Producer_Content/Newsletters/Articles_2011/CorpFin/AssessingOrganizationalRisk.jsp
Nerenz, D. R. & Neil, N. (2001). Performance measures for health care systems. Commissioned paper for the center for Health management research. [PDF document]. Retrieved from Systemswww.hret.org/chmr/resources/cp19b.pdf
Hillson, D. & Simon, P., (2012). Practical Project Risk Management, The ATOM Methodology: Second Edition. Vienna, VA: Management Concept Press
At its most fundamental core, quality improvement of healthcare services and resources requires disciplined attention to the measurement, monitoring, and reporting of system performance (Drake, Harris, Watson, & Pohlner, 2011; Jones, 2010; Kennedy, Caselli, & Berry, 2011). Research points to performance measurement as a significant factor in enabling strategic planning processes and achievement of performance goals (Tapinos, Dyson & Meadows, 2005). Thus, without a system of measurement that accounts for the performance behaviors of healthcare professionals, managers and administrative employees, quality improvement remains a visionary abstraction (de Waal, 2004).
“The ability to distinguish between scale efficiency and pure technically efficiency, while also calculating total technical efficiency, is conferred by the use of a statistical technique known as data envelopment analysis (DEA). While DEA has a fairly complex mathematical definition and formulation, it can be explained in ay terms as a method of evaluating the technical efficiency of an organization, or set of organizations, based on a comparison of inputs and outputs (Cooper, Seiford, & Tone, 2006). According to Boussofiane, Martin, and Parker (1997), DEA is a robust and flexible method of measuring technical efficiency, in part because of DEA’s non-parametric nature (me...
Hillson, D, & Simon, P. (2012). Practical project risk management: The ATOM methodology (2nd ed.). Vienna, VA.: Management Concepts.
Disappointment in financial risk management takes various structures, the greater part of which are exemplified in the present emergency. For instance, risk appraisals are regularly taking into account chronicled information, for example, changes in house costs after some time. Yet, fast financial advancement, including securitized subprime contracts, has made such information untrustworthy. Also, a few risks are missed on the grounds that they are covered up in excessively complex reports that leaders cannot get it (Stoian & Stoian, 2016).
A project Manager should be assigned the responsibility of development and implementation of the risk management plan. Project team: A must be formed who will be responsible for assisting the Project Manager in the risk management process. Also, all the employees should be educated on risks and encouraged to report risks they encounter to the risk management team. This is because risk management is a collaborative process and this would help in bringing in notice any risks that must have been overlooked by the Risk Management
Efficiency is also a part of timeliness, but is singular as well. Economically, the health care system needs to provide as much product or service for time or resources spent. Efficiency in the grand scheme means reducing waste, and reducing production costs. It is noted that some quality improvements do not result in fewer resources used, and can be applied to effectiveness in decreasing overuse (Institute of Medicine, 2001). The APN will be responsible for efficiency now and in the future.
Risk management is a major success key of project management in business world. With major budget overruns in parallel with significant delays, Sydney Opera House is a real example of poor risk management. Risk management requires effective planning, budgeting, and scheduling. First of all, the highest risks should be identified and evaluated in order to find methods to reduce their impact and exposure. Then, factors that cause risk should be addressed while factors that only correlate with the negative impact but do not affect it may be omitted. At this stage, interrelation between various risks should be accounted for to spot the core factors that should be treated in order to ensure effectively and stability of the project's functioning.
No firm can be a success without some form of risk management. Risk are the uncertainty in investments requiring an assessment. Risk assessment is a structured and systematic procedure, which is dependent upon the correct identification of hazards and an appropriate assessment of risks arising from them, with a view to making inter-risk comparisons for purposes of their control and avoidance (Nikolić and Ružić-Dimitrijevi, 2009). ERM is a practice that firms implement to manage risks and provide opportunities. ERM is a framework of identifying, evaluating, responding, and monitoring risks that hinder a firm’s objectives. The following paper is a comparison and evaluation to recommended practices for risk manage using article “Risk Leverage
Fleming (2003) says that project risk can be divided into three categories known as a triple constraint. The three categories that make up the triple constraint are risk related to the technical, quality, or performance attributes of a deliverable; risk associated with schedule; and risk associated with cost (Fleming, 2003). The triple constraint has a hierarchy of risk that ranks risk from highest down to the lowest. Technical risks are the highest-ranking risk on a project followed by schedule, at second, and cost, at third. However, it is important to understand that all three categories are related in unique ways that cannot easily be observed (Fleming, 2003). Technical risk often stem from a lack of funding to procure highly reliable material. Unreliable material can cause technical problems within projects. Piecemeal funding can be another way risk is introduced into the project schedule.
Types of Performance Measures and How to Improve Them The health care organization should be able to quickly improve their performance measurement system with some simple rules. Today's changing the nature of the health care organizations, including the pressure to reduce costs, improve nursing quality and meet the strict guidelines, forcing health care professionals to review how to evaluate their performance. While many health organizations have long recognized the need to go beyond financial measures to assess their performance, many are still trying to choose which measures and how to use them.
Productivity, which in healthcare is based on outcome per unit of input, is a growing concern when meeting the demand of increasing patient volume and financial pressure (Anonymous, Jul 12, 2011). Productivity can be simplified and viewed according to department or type of procedure demanded (Bottling, February 2011). I When looking to improve productivity, one must turn to an effective metrics to drive workforce productivity by carefully examining the healthcare organizations outcome and inputs (Anonymous, Jul 12, 2011). In the case study at Middleboro Physician Care Services, Inc (PCS), where they receive private and Medicare payment and have outpatient services where the patient volume is increasing at the same time, the quality of service
Some include risks at the enterprise level, managing risks in complex projects and dealing with turnarounds and large capital projects. Liu, Zou, & Gong (2013) explore how enterprise risk management (ERM) may influence the ability and performance of project management risk (PRM) by considering the features of the construction industry, its businesses and projects. Managing risks within projects such as these has become an important process to achieve project objectives in terms of the scope, time and cost. The results show that enterprise risk management can positively influence the implementation of project risk management. This can be achieved through implementing a risk focused culture, setting up risk management departments and setting up risk procedures. This will help control the project risk and improve the performance of project risk management. Communicating the concerns with other team members can help identify the risks earlier on rather than later in the development of the project. If the Stakeholders and managers involved are satisfied then the project outline becomes a
In this competitive world, companies have to deal with various types of risk all the time with there projects. Generally, it affects the budget and schedule of the project. So it is important to keep in mind the risk management strategies while creating an initial project plan.