Implementation of Enterprise Risk Management in a State Owned Managed Hospital: lesson learnt

Abstract

Changes in business development cause uncertainty and risk that cannot be avoided and can be a threat to the organization. To overcome these risks and uncertainties, organizations need to implement comprehensive risk management. Enterprise Risk Management (ERM) is a simple risk management that is applied on a broader scale and is a new vocabulary in the world of industrial risk management, especially for the hospital. The paper present the implementation of ERM in a state-owned managed hospital with 234 hospital beds capacity based on ERM framework.

Ten recommendations that need to be made to optimize the ERM framework include systems and planning aspects, human resource development, information systems, and monitoring. In the system and planning aspects, it is necessary to improve policies, adjust the organizational structure and job description of risk managers, develop guidelines, standards and programs, determine indicators, and prepare standard reports. Organizations need to strengthen human resources through selection of risk agents, socialization, workshops, identification of needs, and implementation of training. These efforts need to be supported by improving information and technology systems that support the ERM program and monitoring, and review programs.