Detailed Analysis of Risk Management in the National Health Service

This report delves into the critical aspects of risk management within the National Health Service (NHS). It begins by outlining the fundamental procedures of risk management, including context establishment, risk recognition, examination, evaluation, and mitigation. The report then explores the scope of risk management, emphasizing the importance of organizational structure, culture, and communication. It includes SWOT and PEST analyses to assess the NHS's internal strengths and weaknesses and external opportunities and threats. The report identifies key stakeholders, both internal (directors, managers, scientists) and external (patients, customers, funders), and stresses the importance of communicating risk management processes to ensure effective strategies and decision-making. The report also discusses internal and external information sources, techniques for generating risk (brainstorming, Delphi technique, risk register), and presents risk assessment tables, detailing likelihood, impact, and priority. It further provides options for risk mitigation, including training and action plans, and concludes by discussing the storage of risk management documents, the development of risk treatment plans, and the evaluation of the risk management process to ensure effectiveness and alignment with organizational goals.

MANAGING RISK

Table of Contents
INTRODUCTION....................................................................................................................................................3
Question 1...........................................................................................................................................................3
Question 2 ..........................................................................................................................................................3
Question 3...........................................................................................................................................................4
Question 4 ..........................................................................................................................................................5
Question 5...........................................................................................................................................................5
Question 6...........................................................................................................................................................5
Question 7...........................................................................................................................................................6
Question 8...........................................................................................................................................................6
Question 9...........................................................................................................................................................6
Question 10.........................................................................................................................................................7
Question 11.........................................................................................................................................................7
CONCLUSION........................................................................................................................................................8
REFERENCES.........................................................................................................................................................9

INTRODUCTION
Risk management refers to the recognition, evaluation and estimation of risk which
helps to reduce the unwanted risk in NHS . It helps to reduce both risk and costs. It helps in
addressing the risk so that organisation achieve its objective. It is an integrated form of
approach which helps to manage risk (Rejda, 2011).
Question 1
a. The procedure of risk management followed by NHS is as follows-
Context establishment- It helps in identifying risk. The areas of managing risk in
accordance with health are ICU, CCU, O.R., E.R, etc.
Recognition of risk- It helps the professionals and employees to be aware of the risk
related to the healthcare services.
Examination of risk- It helps in development of idea to understand the risk which has
identified. Level of risk and control measures are included in it.
Evaluation of risk- Its main object is to estimate the risk which is based on
examination of risk and helps in determining which risk need modes of treatment.
Risk mitigation- It should include requirement of resources, individual responsible for
activities etc.
b. It is an standard for managing risk which provides principles and general directions
on risk management in an organisation. The purpose of this approach is to implement all
strategic and managerial task in any project and process which helps to achieve objective of
risk management in an organisation(Lam, 2014).
Application of structure, theories, increased attributes, directions to establish and
impose effective process of managing risk are the key elements of this standard.
Question 2
a. The scope of managing risk is to develop and define the area of risk which will help
in analysing risk. It includes scope of assessment of risk and areas of risk. It helps the
organisation to achieve its organisational objective. There are a number of information which
will help in evaluating problem of risk treatment and give suggestions in supporting the
performance at high level in organisation. There are some factors of information such as
Structure and Design of Organisation,Culture of organisational,Trust,Communication etc. All

these informations can be collected by the support of top management, by whole
organisational structure and by participation of employees(Thun and Hoenig, 2011).
b. SWOT Analysis of NHS
Strength- Strengths are improvement in healthcare facilities, medical instruments,
highly trained professionals etc.
Weakness- Weakness are expired healthcare facilities, inappropriate management
training and insufficient financial resources.
Opportunities- Opportunities such as developing new programs etc.
Threats- Threats costly medical facilities, economic and political insecurity.
PEST Analysis of NHS
Political Factors- It include government leadership, corruption levels, tax regulations
etc.
Economical Factors- It includes living cost, inflation, finance & credit, globalisation
etc.
Social Factors- Social mobility, religion, education, lifestyle etc. are included.
Technological Factors- Rate of change, intellectual property etc. are include.
Question 3
Three internal stakeholders of NHS are-
 Directors of Public Health
 Public health manager
 Research Scientist
Three external stakeholders of NHS are-
 Patients
 Customers
 Funders
Issues of stakeholders-
 Communication
 Performance of organisation in recognising process of risk management
 Risk management strategies
 Health and safety issues
 Inappropriate management system

Question 4
communicating risk management process with stakeholders are important for the
organisation. Good communication skill helps to make a risk management strategy effective.
Communicating or consulting risk management process with stakeholders helps them to
involve in development and implementation of strategies. It helps them to maintain good
communication between the levels of organisation so it will lead them to achieve the
organisational objective. By communicating risk management process it will help the
organisation to provide them better medical facilities and environment so that they will lead
to obtain their objective(De Bakker, Boonstra, and Wortmann, 2010.).
Question 5
Stakeholders participation will help in decision making. Their participation also helps
in corps planning projects. It will help to develop and implement strategy related to public
involvement in different fields. Their participation helps in reducing risk and inequalities. It
will lead to enhance education whose object is to improve abilities in decision making. Their
participation helps in planning processes which will help to demonstrate the viewpoints of
stakeholders which are based on fundamental planning decisions. (Brender and Markov,
2013.)
Question 6
The information sources of internal and external research are as follows-
 Work statement
 Budget
 Schedules
 Executive plans
 Past records of organisation
 statistical informations
 History of organisation
 Potential impacts
 Relevant literatures

Question 7
Techniques used by NHS to generate risk are as follows-
 Brainstorming- It helps to identify the risk with a group of people.
 Delphi Technique- It is done by a team of experts. In this the required
information send to the experts and then they will send back the result.
 Risk register- It is a document which is updated on regular basis throughout
the period of the project. It is involved as a part of a project document. This
register includes risk list, list of risk categories etc.
Question 8
a.
Identified risk Likelihood Impact/ Consequences
Physician contract Likely to occur frequently It indicates the potential problems
in negotiation process.
Joint ventures Occur some time Its impact is to provide better
facilities to customers.
Quality improvement Occur frequently Its impact is to improve the
facilities provided to the customers
in accordance with achieving good
health.
b.
Identified risk Risk rating as E,L,M or H Priority as 1,2,3
Physicians contracting L 3
Joint venture M 2
Quality improvement H 1
Question 9
Risks Options Most
approp
riate

1 Physician contract 1- Increased Payment
2- Providing Facilities
1- Increased payment
2 Joint venture 1-Dispute resolution
2- Non-compete provisions
2- Non-compete provisions
3 Quality improvement 1- Root cause analysis
2- Effect analysis
1- Root cause analysis
Question 10
a.
Action Item Responsible
person
Resources
required
Expected outcomes Time frame
needed
Monitoring
measures
To train the
employees Manager
$600 to
expand to train
the employees
After training
employees work
towards the
achievement of the
organisational goals.
Two months Help to
reduce the
issues related
to quality
improvement.
b. It is the second stage of risk management process. Communication skill is very important
to risk management strategy and it include every member of the organisation such as
committee, customers, members etc. anyone who is directly in contact with organisation.
Risk management is very important for every organisation which involved in implementation
of risk management strategy. It helps to maintain good communication among levels of the
organisation.
Question 11
a. The documents of risk management process can be stored in these following ways-
 These can be stored as electronic records.
 They are stored more strategically.
 to store these document a risk based approach is used.
 Managing publication
 by managing human behaviours
 ensuring integrity of information and record

b. It help in developing variety of options which help in risk mitigation and it also
helps in implementation of action plan. The options for mitigating risk are such as avoid
unwanted risk, reduce likelihood and consequences of the risk, share or transfer of risk
between parties, accept the benefits etc. Plans for developing risk treatment plan are as
follows-
 Development of risk treatment plan- It specify the treatment options, treatment
plans, appropriate owner and target date.
 Forecasting risk analysis- It helps in identifying likelihood of forecasting, forecast
consequences, determine the overall ranking of the risk.
 Implementation of treatment plan- it includes structure of firm, financing,
availability of resources and status of treatment plan.
c. The success of risk management process depend upon the analysis of risk. Policies of
management, activities and planning. The main object of evaluating risk management process
is to meet the outcomes of the plans. There are several remedies which will use to evaluate
the risk management process are as follows-
It will help to identify and then evaluate the problems that are arising from implementation of
the process.
It helps in knowing whether the plan is effective or not. It helps in checking the
efficiency of all the activities and helps in implementation of plan appropriately.
It helps in analysing the business environment in which the implementation of
business plan is very important to achieve the objective.
It will also leads to make changes in default activities. After the activities effectively
evaluated helps to implement the action plan to get results.
After changing the existing activities and risk management plan them it will go for
review and then they will compare with the objective of the risk management plan to achieve
the objective of the organisation.
Evaluating risk management process is sometimes difficult. It is also a time taking
process and require high human efforts (Hoyt and Liebenberg, 2011). So its better to analyse
the plan at every stage to reduce the time and cost both.

CONCLUSION
On the basis of above report it The risk management is important for every
organisation to be aware of the risk. To carry out a business effectively risk management
program is challenge for organisations. It help organisation to identify,analyse,examine and
evaluate the risk to work towards the achievement of the objectives of the organisation.
REFERENCES
Books and Journals
Brender, N. and Markov, I., 2013. Risk perception and risk management in cloud computing:
Results from a case study of Swiss companies. International journal of information
management. 33(5). pp.726-733.
De Bakker, K., Boonstra, A. and Wortmann, H., 2010. Does risk management contribute to
IT project success? A meta-analysis of empirical evidence. International Journal of
Project Management.28(5). pp.493-503.
Hoyt, R.E. and Liebenberg, A.P., 2011. The value of enterprise risk management. Journal of
risk and insurance.78(4). pp.795-822.
Lam, J., 2014.Enterprise risk management : from incentives to controls. John Wiley & Sons.
Rejda, G.E., 2011. Principles of risk management and insurance. Pearson Education India.
Thun, J.H. and Hoenig, D., 2011. An empirical analysis of supply chain risk management in
the German automotive industry. International Journal of Production
Economics. 131(1). pp.242-249.
Online
Risk management. 2017. [Online]. Available through:
<http://www.investopedia.com/terms/r/riskmanagement.asp>. [Accessed on 27th
May 2017]