The purpose of risk management is to identify problems before they happen, analyze, create a plan of action, implement risk reduction and retention plans, and operational risks through risk avoidance. Risk management process includes ongoing decision making, protect financial, human, and tangible assets of the nursing home facility. Risk management addresses issues that may causes problem within the organization by collaborating with stakeholder that builds strong leadership among all stakeholders. In nursing home facilities risk management focuses more on frequency and severity of accidental loses to the organization. This is done through risk control and financing measures. Nursing home administrators report any issues that come as a result of negligence that could lead to lawsuits to the corporate risk manager. Many nursing homes have implemented procedures to report instances of abuse to local authorities and state agencies to prosecute individuals involved and protect residents from more abuse (Carroll, 2009). Risk management is the responsibility of every staff member from the top administrator to all health care workers and staff member who are involved in patient care.
Key Concepts
Optimizing Value- The best way to optimize responsibility and authority, and to control financial and quality risks, is to place such responsibility and authority within the same entity (Granata, 2010). It is important to consider all of the components of a system and how they interact then establish an approach to deal with the value, quality, and cost. The system is composed of inputs and outputs such as people, tools, organizational structure, patient satisfaction, and function improvement. Each ingredient produces a highly valued and attractive output. To understand how to optimize value there must be an understanding of risk and its control.
Measuring Quality-Quality is