Running head: RISK MANAGEMENT IN HEALTHCARE 1

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Institution

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Risk Management In Healthcare 2

Introduction

Risk management in most of the enterprises has been increasingly used as a business

driver in most of the available organizations. This is because the business stakeholders have

raised their concern on some of these risks. In some important situations, the risks have been

presented as decisional drivers who are just embedded on some of the activities of the

organization. They are usually seen as the cause of any uncertainty in the environment of the

body is the question. To solve this problem of uncertainty, the organization must be able to adopt

some of the available models of managing the risk that will be able to act as counteract to the

risk (Bonab et al., 2015).

One of the most significant tools that will help in managing these risks is the Enterprise

Risk Management model. Just like the many patterns in risk management, the ERM involves

lengthy processes and frameworks that can be used by the business to grab the opportunity that

exists. In most cases, the chance is attached to the achievement of the goal that the organization

had as one of its objectives (Muhammad, 2015). The frameworks of the ERM usually apply to

almost all the businesses are it either product based or based on the provision of services.

However, there is some different structure of operation that is avowed by these firms and plays a

significant role in differentiating it across the different sectors that can be used to identify some

of the companies. In this paper, therefore, I will try to discuss some of the differences and

similarities that exist in as far as the ERM model is applied to the service-based and product-

based organization. Some of the issues that are also involved in the service based firms will

include revenue cycle management, patient safety and information technology (Farokhzadian et

al., 2015).

Similarities
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One of the similarities between the service based and product based companies or

enterprises in how they apply the Enterprise Risk management are all summarized in their real

setting (Borhani et al., 2015). Every time these organizations will try to implement the ERM

model, they must engage in the process of establishing the objective of the organization first.

They will then do the setting where they must be aligned to the risks that are faced by the team.

In the side of the product based enterprises, the setting is usually carried out in connection with

the production of the available goods and services (Yan et al., 2017). On the other hand, the

service based enterprise is mainly attached to the provision of services. These two organizations

will have to set their objectives so that they can be able to prevent any risk from affecting the

delivery of the service or the production of the available product (Pelzang 2016).

The other similarity between these two firms comes in the way these firms tries to

identify the various events (Nazari and Masoudik, 2016). In the times when these two

organizations will be evaluating the risk that exist, they will be forced to identify the events that

might or will lead to these risks and even the other events that will subsequently follow leading

to the risk occurrence again. The issue of even identification is therefore significant since they

contribute to risk avoidance by just making the firm leadership to avoid the events that leads to

risks.

Differences

The main difference that comes to these two entities is mainly to do with the products

that the public will get from them. Service-based enterprises mainly offer products that are in the

form of intangible results (Raveesh et al., 2016). They also offer skills entirely that most of their

employees have, on the other hand, the product-based organization mainly offer products that are

actually of tangible and physical. Any product company such as Pepsi will offer products like
Risk Management In Healthcare 4

soft drinks whereas hospitals will offer different types of treatments that are significantly

intangible. The other difference comes in the type of risks that these two firms often face. A

bigger percentage of the risks that hospital and other healthcare organization face are mainly

concerned with the services that they offer. On the other hand, the product-based organizations

will primarily incur risks that are associated with the competition of their products in the market

and the product itself (Balasubramaniam and Kavitha, 2015).

Conclusion

In recap, some similarities and differences exist between the products-based organization

such as the processing and manufacturing companies and service-based company such as the

healthcare practitioner. This is seen in the way they approach the full issue of enterprise risk

management and its model as used in managing risks. However much they are similar, one of the

most apparent similarity is the facts that both the organizations are likely to encounter some risks

which they must ensure that are fully assessed (Sendlhofer et al., 2015). In this process, most of

them will try to albeit on this issue differently and later respond to them effectively to achieve

the desired outcome which is usually different from the two firms. The main difference between

these two things is the fact that most of the risks in the healthcare organizations are often said to

be virtual. This is because some of these risks share their intangible aspects. On the other hand,

the product based organizations have risks that are usually real. This is because they involve

some elements that are physical and tangible (Zeng et al., 2014).
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References

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