Risk management

Risk management can be defined as a proactive approach that:
- Addresses the various activities of an organisation
- Identifies the risks that exist
- Assesses the risks for potential frequency and severity
- Eliminates the risks that can be eliminated
- Reduces the effect of those that cannot be eliminated
- Establishes financial mechanisms to absorb the consequences of the risks that remain
Why do we need risk management?
- Need a safe working environment
- Personal and professional responsibility to patients
- Need to comply with Health and Safety Legislation
- Reduce risk of litigation

A risk must first be identified
- What is the risk?
- How could it occur?
- What is the effect of the risk if not correctly managed?
Risks can be clinical or non-clinical

Once a risk is identified it must be analysed
- How often is likely to occur?
- How much is it likely to cost?
- What are the potential effects of managing the risk?
- What are the potential effects if the risk is ignored?

Funding for Risk management is part of every hospitals budget
Funding for claims come from
- Clinical Negligence Scheme for Trusts
- Existing Liabilities Scheme