Pure risks, involving events that will produce the possibility only of loss, and speculative risks that emerge from competitive scenarios and hold the potential for loss or gain.

A pure risk might be the risk that, while undertaking building expansion to an existing facility, a member of the public (a guest) is involved in an accident.

A speculative risk might be the risk associated with developing a new computer-based customer relationship system

 

Risk enters a project from many different sources. In some instances, it can be organizationally-political. Then there are economic forces (such as fluctuating interest rates or exchange rates). Social issues, especially the environmental ones, are assuming a high profile at present. There is also technology presenting newer and better solutions at a faster and faster rate 

 

First, you must identify risk, determine its consequence, and then seek ways of overcoming it. The consequence of project risk is characterized by the following risk factors.

Project managers need to predict the possible deviations from the plan, to estimate the probability of those deviations occurring, and to determine the consequential damage if they do occur.  

In simple terms, objectives are more likely to be achieved and damaging things will not happen or are less likely to happen.

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1. Compliance. One of the most important benefits of an effective risk management program is it helps ensure an ASC is in compliance with several key aspects of accreditation, Medicare Conditions for Coverage, and in some states, licensure requirements, says Ms. Hiatt.

2. Identify system and provider weaknesses before an adverse event occurs. "An effective risk management program is an organization's first line of defense in identifying a weakness or system failure before it occurs and in mitigating or reducing any loss after it occurs," says Ms. Hiatt.

3. Mitigation or reduction of potential loss after an event has occurred. Sooner or later, all providers, if they practice long enough, will likely face a significant adverse patient outcome, says Ms. Hiatt. "An effective risk management program is the provider's first line of defense," she says. "If you follow the principles of risk management, you can mitigate collateral losses following an adverse event."

4. Provides a framework to gather data that can be used to improve patient outcomes. "When people think of risk management, they usually think of incidence reports, but risk management is more than that," Ms. Hiatt says. "It's patient satisfaction surveys, patient grievance complaints, and infection investigation tools, just to name a few, and all of these tools are only effective if the organization provides the required education to employees when they are hired and annually thereafter." Educating the organization's employees regarding risk management is also an accreditation requirement.


5. Reduce number, type and severity of adverse events. While no program will prevent every adverse event, the number of events can be reduced if the organization is fully engaged, recognizes the protection afforded to it through risk management, and actively encourages its employees participate in risk management.