Part 1Discussion 1
Write a 250- to 300-word response to the following:
•
•
•
•
What is enterprise risk management (ERM)?
What value can be provided by an ERM program?
What are the hallmarks of an effective ERM?
Include your own experience as well as two citations that align with or contradict your
comments as sourced from peer-reviewed academic journals, industry publications,
books, and/or other sources. Cite your sources using APA formatting. If you found
contradicting information to what your experience tells you, explain why you agree or
disagree with the research.
Discussion 2
To prepare for this discussion, research 3 to 5 global health care organizations.
Write a 250- to 300-word response to the following:
•
•
•
Summarize the enterprise risk management (ERM) process for 1 of the global health
care organizations that you selected.
Identify common challenges and pitfalls of institutionalizing an ERM culture within a
global health system.
Discuss how the 4 Ts of risk control (i.e., transferring risk, tolerating risk, treating risk,
and terminating risk) might be applied to mitigate risk.
Part 2
Student Responses:
Student Response 1: Student response 1: Review the classmates’ posts and respond to at
least one in a minimum of 150 words. Explain why you agree or disagree. Then, share an
example from your professional experience to support your assertions.
Good afternoon class,
Enterprise Risk Management (ERM) is proactive approach of activities and strategies to enable
organizations to focus on identifying, mitigating and managing risks shared across the
organization to improve organizational and operational performance (Sprcic et al.,
2015). Brown et al (2019) noted when organizations are looking at risks, the realization that
risks affect the entire enterprise not just one segment in an organization. Instead of just
focusing on the financial side, organizations need to consider, operations and cyber security
risks when developing and implementing a risk management plan, coordinating a framework
through role ownership across all members of the organization (Brown et al., 2019). The value
of provided by an ERM program can help minimize negative effects and promote positive
effects in the strategic planning that analyzes risk to align with an organization’s mission and
values (Etges et al., 2018). Using the ERM process in the healthcare industry can be utilized and
provide value in helping risk managers improve organizational value in mitigating risks and
promoting patient safety (Etges et al., 2018).
Some important hallmarks of an effective ERM should include board level commitment in the
decision making process, dedicated senior level risk executives to drive and facilitate,
engagement and accountability of all levels of the organization, transparency, and a shift in
focus from reactive to proactive (Tyagi, 2020). My organization utilizes ERM. Everyone is
responsible to ensure the safety and security of our organization from cyber security to
personal protected information. We all are responsible and required to attend training courses
on cyber, safety, security and compliance once a year to ensure we understand the risks and
how to be proactive in mitigating risks.
Brown, J., Duane, M., & Schuermann, T. (2019). What is enterprise risk management? Journal of
Risk Management in Financial Institutions, 12(4), 311–319.
https://www.ingentaconnect.com/contentone/hsp/jrmfi/2019/00000012/00000004/art00003
Etges, A. P. B. D. S., Grenon, V., Lu, M., Cardoso, R. B., de Souza, J. S., Kliemann Neto, F. J., & Felix,
E. A. (2018). Development of an enterprise risk inventory for healthcare. BMC Health Services
Research, 18(1), 578. https://doi.org/10.1186/s12913-018-3400-7
Sprcic, D. M., Kozul, A., & Pecina, E. (2015). State and perspectives of enterprise risk
management system development – The case of Croatian companies. Procedia Economics and
Finance, 30, 768–779. https://doi.org/10.1016/S2212-5671(15)01326-X
Tyagi, A. (2020) Enterprise risk management: Benefits and
challenges. SSRN. http://dx.doi.org/10.2139/ssrn.3748267
Student Response 2: Student response 1: Review the classmates’ posts and respond to at
least one in a minimum of 150 words. Explain why you agree or disagree. Then, share an
example from your professional experience to support your assertions.
One global healthcare organization implementing an enterprise risk management (ERM)
process is the Mayo Clinic. The Mayo Clinic is a non-profit academic medical center located in
Rochester, Minnesota, with campuses in Arizona and Florida. The ERM process at the Mayo
Clinic involves six stages: identifying risks, assessing risks, responding to risks, monitoring and
reporting risks, integrating risk management, and promoting a risk management culture. The
Mayo Clinic’s ERM process is integrated with its strategic planning and performance
management process, which ensures that risks are considered when making decisions about
investments, operations, and research projects (Sousa et al., 2021).
Despite ERM’s benefits, several challenges and pitfalls are associated with institutionalizing an
ERM culture within a global health system. One of the most common challenges is resistance to
change, as some individuals may be reluctant to adopt new risk management practices.
Another challenge is a lack of resources to implement and maintain an ERM program, such as
funding and staff time. Additionally, there may be a lack of awareness or understanding of the
importance of ERM among stakeholders, including board members, executives, and frontline
staff (Krambia-Kapardis, 2020).
To mitigate risks, the Mayo Clinic and other healthcare organizations may use the 4 Ts of risk
control: transferring risk, tolerating risk, treating risk, and terminating risk. Transferring risk
involves purchasing insurance or outsourcing activities to third-party vendors. Tolerating risk
involves accepting risks that are deemed acceptable and can be managed through regular
monitoring and mitigation efforts. Treating risk involves implementing risk control measures,
such as process improvements, training, and technology solutions. Terminating risk involves
discontinuing activities that pose unacceptable risks or divesting from assets or projects that
are no longer viable (Heath & Tynan, 2017).
In conclusion, implementing an ERM process can help healthcare organizations like the Mayo
Clinic improve risk management practices and make better-informed decisions. However,
several challenges and pitfalls are associated with institutionalizing an ERM culture within a
global health system. To mitigate risks, healthcare organizations may use the 4 Ts of risk
control, which involves transferring, tolerating, treating, and terminating risks. An effective ERM
program can help healthcare organizations achieve their strategic objectives and enhance their
reputation while minimizing risk exposure.
References:
Heath, R. L., & Tynan, C. (2017). Handbook of risk and crisis communication. Routledge.
Krambia-Kapardis, M. (2020). An overview of enterprise risk management in healthcare
organizations. Journal of Health Management, 22(4), 561-568.
Sousa, M. R., Faria, R. M., & Canelas, J. J. (2021). Risk management in healthcare organizations: A
systematic review of the literature. Journal of Healthcare Risk Management, 41(3), 27-37.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
