Risk Management Skills Pre-interview Evaluation
Part A
Respond to the following prompts in 90 to 175 words total. Be clear and concise, use complete sentences, and use your own words. Start your answers on a new line.
Explain the difference between traditional and enterprise risk management.
Traditional risk management focuses on identifying and mitigating risks within specific departments or silos of an organization (AG, 2024). It often involves addressing risks on a case-by-case basis, usually with a reactive approach to events as they occur. This method is often used to focus on such occurrences as property damage or responsibility claims and relies on insurance as one of the most widely used kinds of risk transfer.
On the other hand, Enterprise Risk Management (ERM) is a comprehensive and robust approach to risk management in an organization. ERM primarily deals with tools that can help to identify, evaluate, monitor, and control all potential risks that may have an impact on an organization’s strategy, operations, finances, and legal requirements. It is pre-emptive and enhanced, implementing risk management as an institution-wide culture and framework of governance and decision-making. ERM aims at making the process of taking risks in an organization done in a way that will fit into the risk tolerance capacity of the firm as well as the overall corporate benchmarks.
Explain why enterprise risk management is a more effective approach for today’s organizations.
Enterprise Risk Management (ERM) is more successful in today’s enterprises because it offers a complete framework for aligning risk management with company goals and strategy (COSO, 2023). ERM facilitates a proactive approach to identifying and mitigating risks before they escalate into significant issues, thereby protecting and creating value for stakeholders. By integrating risk management across all levels of the organization, ERM ensures that risks are managed consistently and efficiently, avoiding the pitfalls of fragmented, silo-based approaches. This holistic perspective allows organizations to capitalize on opportunities while mitigating potential threats, thus enhancing overall resilience and performance in an increasingly complex and interconnected business environment.
Part B Risk Management Concepts
Complete the following table. In the second column, define each risk management concept listed in the first column. In the third column, provide an example of how each concept is used within risk management in health care. An example has been provided for you.
Be clear and concise, use complete sentences, and use your own words. Follow standard grammar rules and provide examples where appropriate to support your answers.
| Risk Management Concepts | Definition | Example |
| HIPAA | Health Insurance Portability and Accountability Act (HIPAA) is a federal law designed to give patients the right over their health information by allowing them to set rules and limits on who gets to view/receive their health information. | A patient’s ex-husband calls to obtain personal health information for a patient. He states his ex-wife asked him to call to obtain her results because she is unable to call. The healthcare employee reviewed the patient’s preferred method of communication and disclosure and verifies the patient approves the facility to provide personal health information to her ex-husband over the phone. |
| Conditions of participation | Conditions of Participation (CoPs) are the standards that healthcare organizations must follow in order to receive Medicare and Medicaid payments. | A hospital ensures compliance with CoPs by maintaining accurate and thorough patient records, conducting regular staff training on updated healthcare practices, and adhering to safety protocols, thereby qualifying for federal funding and reimbursement. |
| Accident (medical) | A medical accident refers to an unintended, unforeseen event in a healthcare setting that results in harm or injury to a patient. | A patient slips and falls in the hospital due to a wet floor, leading to a broken hip. The hospital investigates the incident to identify the cause, implements additional safety measures such as wet floor signs, and educates staff to prevent similar accidents in the future. |
| Complaint | A complaint in healthcare is a formal expression of dissatisfaction by a patient or their representative regarding the quality of care or service. | A patient files a complaint about long wait times and perceived rudeness from the nursing staff. The hospital’s risk management team investigates the complaint, addresses the patient’s concerns, implements staff training, and reviews operational procedures to improve patient experience. |
| The Emergency Medical Treatment and Labor Act (EMTALA) mandates that hospitals offer emergency medical care to all patients, regardless of their capacity to pay (CRS Reports (.gov), 2023). | A patient arrives at the emergency department with severe chest pain. Under EMTALA, the hospital is required to provide an appropriate medical screening examination and stabilizing treatment, regardless of the patient’s insurance status or ability to pay, before considering transfer or discharge. | |
| Incident reporting system | An incident reporting system is an organized way for healthcare workers to record adverse occurrences, near misses, and other safety issues (Shaikh, 2022). | A nurse informs an administration about a medication error using an incident report system of the hospital. This process involves defining the cause, determining corrective actions, and making changes to mitigate future occurrences to improve the quality of patient safety and care delivered to patients. |
| Informed consent | Informed consent is the process of informing a patient about and understanding the possible risks, benefits, and alternatives to a proposed therapy.
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A patient must be informed of the intended surgery, its likely complications and risks or benefits of the procedure, and other treatment options that can be tried instead. The patient is required to sign a consent form to show that he has understood the situation and is willing to undergo the operations. |
| Malpractice | Medical malpractice happens when a healthcare provider deviates from the standard of care, causing injury to the patient. | A surgeon leaves a surgical instrument inside a patient’s body, leading to infection and additional surgeries. The patient files a malpractice lawsuit, and the hospital reviews surgical protocols to prevent future occurrences and improve overall patient safety. |
| Legal health record | The legal health record is an official business record created by a healthcare provider that documents the treatment and services given to a patient. | A legal health record, which contains all clinical documentation, diagnostic results, and treatment plans for a certain patient, is kept in the hospital. This record is for legal, regulatory, and patient care needs. |
| National patient safety goals | The National Patient Safety Goals (NPSGs) are a set of precise objectives designed to improve patient safety and quality of treatment in healthcare institutions (Shaikh, 2023). | In order to meet NPSGs, the hospital has a process of identification of patients before administering medicine and other treatments. This minimizes the occurrence of medical errors and guarantees improved patient safety and quality of care for all the patients. |
References
AG, S. (2024). Enterprise-Grade Hybrid and Multi-Cloud Strategies: Proven strategies to digitally transform your business with hybrid and multi-cloud solutions. Packt Publishing Ltd.
COSO. (2023). Enterprise Risk Management Integrating with Strategy and Performance. https://aaahq.org/portals/0/documents/coso/coso_erm_2017_main_v1_20230815.pdf
CRS Reports (.gov). (2023). Overview of the Emergency Medical Treatment and Active Labor Act (EMTALA) and Emergency Abortion Services. https://crsreports.congress.gov/product/pdf/IF/IF12355
Shaikh, U. (2022). Strategies and Approaches for Investigating Patient Safety Events. Psnet.ahrq.gov. https://psnet.ahrq.gov/primer/strategies-and-approaches-investigating-patient-safety-events
Shaikh, U. (2023, September 13). National Patient Safety Goals. Ahrq.gov. https://psnet.ahrq.gov/primer/national-patient-safety-goals
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Question 
Imagine you are applying for a risk manager position at a local hospital. The recruiter liked your resume and has sent you a pre-interview assignment to see how you may respond to potential risk management situations before moving you on to an in-person interview. The company has requested you complete the worksheet thoroughly and in conversational verbiage.
Risk Management Skills Pre-interview Evaluation
Complete the Risk Management Skills Pre-interview Evaluation worksheet.