Enterprise Risk Management



Enterprise Risk Management (ERM)- In today’s competitive healthcare environment, business entities are faced with risks as they strive to create value. It is important for providers to make appropriate strategic decisions with regard to these risks. Many decisions are based on uncertainties with adverse effects and outcomes which can be defined as a risk. It is important for management to understand the true potential threat to an organization and to develop a comprehensive approach to the risk identified. Creating an ERM framework can facilitate a cost effective approach to risk reporting, monitoring and information management.

*Please use the links attached to get a better understanding of ERM and how it relates to Healthcare. You may also use one (1) outside source to cite.

Please respond to one of the two questions below.

1) What is the importance of risk management in the overall strategy of a company?
2) Does risk management give an organization a competitive edge?

Sample Solution