At the Becker's Hospital Review Annual Meeting in Chicago on May 10, Kreg Weigand, partner, and Eric Parker, director, at KPMG discussed the importance of embedding enterprise risk management concepts into a healthcare organization's strategic plans.
According to Mr. Weigand, enterprise risk management, or ERM, is a capability that helps organizations prioritize their objectives and thereby allows them to prioritize their resources for achieving those objectives.
Conversations about ERM should be incorporated into the strategic planning of a healthcare organization because it can help define the organization's vision for the future and help it prepare for any potential pitfalls it may face while trying to achieve its goals.
During strategic planning sessions, it is important to discuss the factors that impact your organization and discuss the assumptions being made regarding those factors. "That discussion is fantastic because it helps set boundaries and limits," said Mr. Weigand. To ensure that ERM is embedded in strategic planning, have someone document that discussion, and then come back to it and see if those assumptions were confirmed.
Mr. Parker said that aligning ERM with strategy doesn't require an entirely new plan and new tools. Current risk management efforts can be brought to align with strategy by bringing the conversations together.
Mr. Weigand closed the session by discussing risk awareness. "Decisions that affect the organization's future are made everyday by its employees," said Mr. Weigand. Therefore, they must be made aware of the organization's objectives and any potential risks it might face.
According to Mr. Weigand, enterprise risk management, or ERM, is a capability that helps organizations prioritize their objectives and thereby allows them to prioritize their resources for achieving those objectives.
Conversations about ERM should be incorporated into the strategic planning of a healthcare organization because it can help define the organization's vision for the future and help it prepare for any potential pitfalls it may face while trying to achieve its goals.
During strategic planning sessions, it is important to discuss the factors that impact your organization and discuss the assumptions being made regarding those factors. "That discussion is fantastic because it helps set boundaries and limits," said Mr. Weigand. To ensure that ERM is embedded in strategic planning, have someone document that discussion, and then come back to it and see if those assumptions were confirmed.
Mr. Parker said that aligning ERM with strategy doesn't require an entirely new plan and new tools. Current risk management efforts can be brought to align with strategy by bringing the conversations together.
Mr. Weigand closed the session by discussing risk awareness. "Decisions that affect the organization's future are made everyday by its employees," said Mr. Weigand. Therefore, they must be made aware of the organization's objectives and any potential risks it might face.