Risk Management Within The Hospital And Ensure Compliance...

1.6 Risk Management: Risk management is considered one of the most important parts in healthcare, as it implements strategies to reduce financial loss and patient safety. Risk management is defined as ‘ the assessment and removal or control of hazard to patients, employees or institutions’ (Medical Dictionary, n.d.). Risk management strategies should be introduced throughout the hospital and ensure compliance from all levels of staff. The strategies are designed to identify, monitor, and manage risks including fraud while ensuring insurance arrangements are adhered to (Audit and Risk Committee Terms of Reference, 2015). If any hazard is deemed a risk it must be documented and reviewed, with the strategy altered to ensure patient and†¦show more content†¦Financial risk management frameworks are designed to avoid losses and expenses that could impact the hospital (Moskowitz, n.d.). In Australian the financial risk management team analyses internal processes to ensure accountability an d compliance with the Public Governance Performance and Accountability Act 2013 (Health.gov.au, 2015). The legislation also takes into account technological risk management including records management, information security and confidentiality (Health.gov.au, 2015). 1.7 Financial Administration: Financial administration is defined as ‘the job of managing financial tasks for a company or organisation, for example controlling the budget, writing financial reports and providing money for projects’ (Dictionary.cambridge.org, 2015). Finances are the bread and butter of any organisation, they provide employees and resources for the functioning of the hospital which can only be achieved if money is provided. Financial administration in public sectors has four main objectives, these include: ‘1) the collection, preservation and distribution of public funds. 2) The coordination of public revenue and expenditure. 3) The management of operations on behalf of the state. 4) The general control of financial affairs of the government’ (Jadhav, n.d.). In order to achieve these objectives a financial plan, budget and investment decisions must be created to provide a framework for the hospital. Financial planning refers to