Introduction and Purpose of the Risk Management Plan

Introduction and Purpose of the Risk Management Plan

Health Network Inc. is an IT security firm that works to maintain the security of data belonging to over 600 employees in various states within the United States. The company has a current annual revenue of USD 500 million. The major products Health Network Inc. manages include HNetExchange, HNetPay, and HNetConnect. The company was in charge of the medical messages of patients and citizens’ mode of payment in accessing vital services such as healthcare, and it also enabled doctors to update their profiles while serving different types of patients. A risk management plan is important within an organization because it necessitates identifying, evaluating, and mitigating risks. This plan also entails risk control monitoring, cost-benefit analysis, and financial impacts. This paper will discuss the various components of a risk management plan, such as compliance laws and regulations, roles and responsibilities of individuals and departments in Health Network Inc., and finalize the risk management planning process schedule.

An Outline for the Risk Management Plan

The process of risk management is composed of the following five stages, as highlighted below;

Identify the risk

Analyze the risk

Evaluate the risk

Mitigating the risk

Monitoring and reviewing the outcome of the risk mitigation process

Scope and Boundaries of the Plan

Health Network Inc. comprises three broad components: HNetExchange, HNetPay, and HNetConnect. The HNetExchange element in the organization deals with securing electronic messages that emanate from customers and large hospitals. Furthermore, the second component of the organization is the HNetPay, which is concerned with supporting the management of secure payments and billing. This portal of the organization works by accepting various forms of payments from credit-card processing organizations. Lastly, the plan also involved the HNetConnect component that lists doctors, clinics, and multiple forms of medical facilities that permit customers to find the right type of care at the right geographical location.

Compliance Laws and Regulations Relating to the Organization

Regulatory compliance is when the business adheres to certain state, federal, and international laws and regulations that govern its economic activities. The requirements that govern the various organizations vary from one organization to another, depending on the industry in which an organization operates and the type of business it conducts (Johnson, 2020). Abiding by regulatory laws is important for Health Network Inc. because it aids it in protecting the company against various risks. For instance, security regulations that enable the protection of Health Network Inc. against data breaches and financial regulations come in handy by helping protect against various forms of financial fraud. In contrast, safety regulations are important as they aid in keeping employees safe from work-related disasters (Pererva et al., 2021).

Health Network Inc. benefits greatly from complying with the set rules and regulations. For instance, one of the benefits is that complying with these regulations makes collaboration uncomplicated, as the organization can create a positive trend in how it conducts its economic activities. The other benefit is that complying with the set rules and regulations offers visibility regarding compliance performance (Pererva et al., 2021). With increased visibility, Health Network Inc. could quickly retrieve data, monitor how the data is doing, and direct enough attention to the problem areas, reducing the risk associated with compliance issues. The other benefits are that complying with the regulatory policies simplifies the tracking of transformations and lowers operational costs. The best way to meet the regulatory framework is by tracking changes within the organizational setting through the digital solution (Pererva et al., 2021). Lastly, complying with the regulatory policies will enable Health Network Inc. to avoid fines and penalties related to compliance issues (Johnson, 2020). Some of the compliance policies that Health Network Inc. will be required to comply with include the following;

Sarbanes Oxley Act (SOX)

Health Insurance Portability and Accountability Act (HIPAA)

Payment Card Industry Data Security Standards (PCI DSS)

EU’s General Data Protection Regulation (GDPR)

Roles and Responsibilities of Individuals and Departments at Health Network Inc.

The execution of the risk management plan at Health Network Inc. involves various roles and responsibilities that are executed by different types of stakeholders or departments within the organization. Some stakeholders in the risk management plan include the project manager, risk manager, employees, and the government. The project manager performs various sets of roles in the risk management plan. For instance, it is the role of the project manager to forecast the nature of the projects in light of the identification of risks (Willumsen et al., 2019). The project manager also plans the responses that would be adopted in managing the risks through insurance adoption before they occur. The other responsibilities executed by the project manager include overseeing the implementation of responses required regarding minimizing adverse effects related to hazards (Willumsen et al., 2019).

The risk manager hired at Health Network Inc. aids in the execution of various vital roles and responsibilities. For instance, the risk manager analyzes the key risk indicators and conducts the what-if analysis to determine the appropriate time when certain risks are likely to occur (Willumsen et al., 2019). Furthermore, the risk manager is also involved in implementing control systems and action plans for safeguarding the assets and resources of the organization. This role is executed by the risk managers mitigating the risks and potential damages associated with the known risks (Johnson, 2020).

The employees within Health Network Inc. form the incident response team, which analyzes the available information, discusses the observations and activities, and shares reports with other stakeholders within Health Network Inc. The amount of time spent on these pieces of information is based on a single question of whether the time is a time of crisis or a time of calmness. Furthermore, the incident response team reviews current security trends and implements incident response procedures (Willumsen et al., 2019). The more information that the incident response team provides to the executive staff, the better, as it necessitates executive support and participation in the risk management process.

A Schedule for the Risk Management Process

The risk management plan will flow as follows;

Week 1: Bring together the various stakeholders and brief them on the risks and vulnerabilities that Health Network Inc. may face. This will ensure that all the stakeholders comprehend the direction being taken regarding mitigating risks.

Week 2: Allocating various roles and responsibilities to different types of stakeholders to avoid duplication of duties. This will ensure the risk management plan is executed within the set timeframes.

Week 3: Distribute the plan to all the organization’s stakeholders and ensure that they attend brief meetings regarding its implementation.

References

Johnson, M. S. (2020). Regulation by shaming: Deterrence effects of publicizing workplace safety violations and health laws. American Economic Review, 110(6), 1866-1904.

Pererva, P., Kobielieva, T., Kuchinskyi, V., Garmash, S., & Danko, T. (2021). Ensuring the Sustainable Development of an Industrial Enterprise on the Principle of Compliance-Safety. Studies of Applied Economics, 39(5).

Willumsen, P., Oehmen, J., Stingl, V., & Geraldi, J. (2019). Value creation through project risk management. International Journal of Project Management, 37(5), 731-749.

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This project is divided into several parts, each with a deliverable. The first four parts are drafts. These documents should resemble business reports in that they are organized by headings, include source citations (if any), be readable, and be free from typos and grammatical errors. However, they are not final, polished reports.
Please see the attached requirements.

Project Part 1: Risk Management Plan Outline and Research
For the first part of the assigned project, you will create a partial draft of the risk management plan. To do so, follow these steps:
Research risk management plans.
Create an outline for a basic risk management plan with anticipated section headings (as indicated in this numbered list). This plan will include a qualitative risk assessment, which is addressed later in the project.
Write an introduction to the plan by explaining its purpose and importance.
Define the scope and boundaries of the plan.
Research and summarize compliance laws and regulations that pertain to the organization. Keep track of sources you use for citation purposes.
Identify the key roles and responsibilities of individuals and departments within the organization as they pertain to risk management.
Develop a proposed schedule for the risk management planning process.
Create a draft risk management plan detailing the information above. Format the plan similar to a professional business report and cite any sources you used.
Submission Requirements
Format: Microsoft Word (or compatible)
Font: Arial, size 12, double-spaced
Citation style: Your school’s preferred style guide
Estimated length: 4–6 pages