ERM: North Shore LIJ Health System - Essay Example

Enterprise risk management (ERM) is defined as the process to manage risks facing organizations which might jeopardize their operations. ERM involves identification of various events relevant and crucial to an organization’s objectives, assessing the probability of occurrence, magnitude of impact, fashioning a response strategy if and when the risks occurs while monitoring process. ERM is therefore designed to address the various needs of stakeholders and protect a business image. Being the chief risk officer (CRO) I am credited with ensuring risks are identified, reduced and addressed.

Management efforts to monitor risks follows a choreographed approach meant to correctly identify analyze and promptly respond to the various risks and opportunities facing the internal and external environment of an enterprise. The risk management department has adopted a risk response strategy which includes: Accept: this happens when no further action can be taken due to an existing benefit decision. The risk management therefore sought to address the following questions: what are the risks facing NSLIJ?

What are the most crucial among the identified? Can the risks be mitigated? If so, what are the possible and ethical ways of mitigating those risks? The risk management team employed various methods such as face to face interviews among staff and customers, questionnaires were also administered to patients, staff and other stakeholders, general observations on the day to day running of NSLIJ as well as archived past reports on the same. They were conducted on six week duration. The risk management team identified various risks facing a health system such as North Shore-LIJ.

They included, but are not limited to, financial risk, operational risk, strategic risk, hazard risk, technological risk and potential exposure risk. Financial risk includes