What exactly is risk management?
Risk management refers to the systematic approach that identifies, analyzes, evaluates, and controls potential threats. It encompasses proactively anticipating risks, establishing and implementing appropriate measures to reduce or even eliminate these risks, to monitoring the risks after the policy has been applied.
By systematically applying risk management in the healthcare setting, and thus thinking ahead and anticipating possible risks early on, these can be contained so that their consequences remain limited.
What risks exist in healthcare?
WWhere people work, there is always a chance of mistakes. The healthcare sector faces various risks that can endanger the quality of care and the continuity of the healthcare institution. These include not only the obvious, whether human-made medical errors or complications. Risks also exist in other areas, consider potential operational risks: administrative errors, system failures, stock shortages, to name a few examples. External factors can also lead to significant risks: disasters, market competition, but also changes in legislation.
Benefits of risk management in healthcare
The well-known saying 'forethought is rule' goes hand-in-hand with risk management. That risk management is a must in the healthcare sector is not really a surprising statement. What is interesting, however, is to look at the benefits it brings.
If you manage existing risks well, you are...
- ... prepared for emergencies
Although you never assume it, you must always be prepared for the worst: an emergency. It is important to know what to do in the event of such an emergency, so that the damage to both the client and the healthcare worker can be limited as much as possible. Good risk management ensures that you are well prepared for emergencies.
- ... able to determine what acceptable risks are
Naturally, working in healthcare simply involves risks. And if things are a bit against you, maybe a lot of risks. We distinguish between acceptable risks – risks that are calculated and therefore can be taken – and unacceptable risks, i.e., risks that must be prevented. Risk management makes it clear what types of risks there are and how to deal with each possible risk.
- ... improving the quality of your care and your organization
In 2024, it's all about quality and managing it – also in the healthcare sector. Mapping all processes and possible risks and their control provides clear points of action for improving the quality of your care.
- ... financially stable
Risk management plays a crucial role in maintaining the financial stability and sustainability of healthcare organizations. Managing risks enables you to avoid potential financial losses – the result of legal disputes, fines, or operational disruptions.
Risk management in healthcare: how to approach it?
To really get started with risk management, it is handy and easy to follow a step-by-step plan. When it comes to risk management, a 6-step plan is often worked with:
- Identify the risks
First, you start by identifying strategic, operational, and financial risks. Involving all stakeholders – healthcare provider, client, executive, supplier – is of great importance to gain insight into the risks that may occur.
- Analyze and assess the risks
In this phase, the potentially harmful effects of identified risks are mapped out. Based on this, it is possible to prioritize the risks and determine the focus points.
- Analysis of current control measures
Now that it is clear what the possible risks and the potential consequences are, it is time to look at how these risks are currently being controlled. Is it being done in the right way? Or are adjustments needed?
- Design and implement
In this phase, one of the following choices is made per risk: avoid, reduce, transfer, or accept?
- Avoid: ensure that work processes or actions are changed in such a way that risk is avoided, for example, by working with a different supplier or using a different method.
- Reduce: limit risks, for example, by taking out insurance, or addressing the cause of the risk.
- Transfer: it is not always possible, but in this scenario, you let an external party bear the risk that is associated with certain activities, for example.
- Accept: if avoiding, reducing, or transferring is not possible, you will have to accept the risk, which does not mean that the risk is not influenceable. And remember: you do not have to accept everything without even a question.
- Monitor, evaluate, and report
Risk management is a continuous process. It is therefore important to measure whether your action plans have an effect on the identified risks. And to make your employees understand the importance of risk management.
- Integrate results into decision-making processes
The integration of results into decision-making processes includes, among other things, using risk information for future analysis and decision-making, for example, in investment proposals and project management.
Risk management: essential for future-proof healthcare
Risk management in the healthcare sector not only guarantees patient safety and quality of care but also supports the sustainability of healthcare institutions. By systematically identifying, analyzing, managing, and monitoring risks, healthcare organizations can act proactively and adapt to changing circumstances. The quality of care and patient safety are thus guaranteed, but this way of working also contributes to the financial stability and competitiveness of healthcare institutions.
Through structured risk management, healthcare institutions can deal with challenges reactively as well as proactively, constantly striving for improvement and innovation in their services. Thus, they are prepared for the challenges of today as well as those of tomorrow.