Risk management is the most important part of any organization to face the risks that
might arise when a new project started. It should be a first concern when the decision is
being made. Risk management is the practice of looking at the exposure to risk and
deciding how to best handle that exposure. The idea behind risk management is to decide
if the benefit outweighs the risk. This process will help you to identify risks that might
normally be overlooked so when things come up, they do not surprise you by having a
plan in place on how to solve them.
Risk management would help to identify and then manage threats that could severely
impact or bring down the organization. This could be done by reviewing operations of the
organization, identifying potential threats to the organization and the likelihood of their
occurrence, and then taking appropriate actions to address the most likely threats
(McNamara, C., 1999).
Risk management also explores strategies to assess organization susceptibility to risk. It
minimizes adverse impacts of operational risk, market risk, and credit risk on resources,
earnings, and cash flows through risk analysis. Organizations should regularly undertake
comprehensive, focused assessment of potential risks to the organization. This focused
assessment should occur at least twice a year by a team of staff members representing all
the major functions of the organization. The assessment should be carefully planned,
documented and methodically carried out. Healthcare organizations and facilities are
among these organizations, which could benefit from well-implemented risk management.
Healthcare organizations are among those organizations that face many risks associated
with their operations. Long-term care (LTC) facilities are one of them.
The long-term care industry is in a state of crisis across the nation. An alarming number of
states are experiencing dramatic increases for general liability and professional liability
(GL/PL) coverage. A recent study, commissioned by the American Health Care
Association, found that 14 of the 16 states analyzed experienced double-digit annual
increases in their GL/PL costs over the past decade, with a majority of them experiencing
loss cost trends in excess of 25 percent (Bourdon, T., 2005).
LTC facilities are facing broad-range risks such as reducing medical errors, patients safety,
complying with government program like HIPAA, staying on top of developing legislation
and regulations and making them work to facility benefit. The major management risks the
LTC facilities are based in respecting and protecting elders. According to the United States
Census Bureau projections on aging, more than 40 million U.S. citizens will be of
retirement age by 2010, including approximately 6.1 million who will be 85 years old or
older. It was projected by the government that some 86.7 million Americans will be 65 and
above and 20.9 million will be 85 or older by 2050 (Cheese man, 2001). Many of these
people will enter eldercare facilities, extended care facilities, and independent living
facilities. As the U.S. population ages, and more people reside in long-term-care facilities,
security professionals must learn to assess and address the unique risks of these facilities.
There are many types of long-term care facilities such as independent living or congregant
care, assisted living, sub-acute nursing, acute care, and finally hospice. It is often that these
care options are provided by a single organization on a single campus. Whether the LTC
facility offers some or all of these care options, the first step in developing appropriate
security is a thought risk assessment. The key is for management to act proactively. They
should not wait for an incident to occur before conducting an assessment. The
administrators of these facilities are beginning to place the proper priority on security.
Each long-term care facility has its own unique security needs depending on its location
and surroundings. Four points have to be assessed to determine a facility unique security
needs. They are: perimeters and access controls to protect residents from the outside world,
internal security to protect residents from threats within the facility, measures to protect
residents who cannot protect themselves or are a danger to themselves, and measures to
protect caregivers and loved ones.
LTC facility could protect residents from the dangers of the outside world by having
adequate controls securing the perimeter and managing access to buildings and grounds. It
is important to find out geographical risks and area crime trends. The grounds assessment
should include existing lighting, fencing, landscaping, and natural surveillance. LTC could
also protect their residents by using interior patrols, front desk management, sing-in, and
badging.
Elements to consider when assessing threats within LTC environment include current
employee recruitment processes, screening, and background checks, and supervision of
employees. The demand for entry-level resident care and custodial workers is high. Staff
turnover in these jobs is also high, and some organizations have chosen to reduce costs by
cutting back on references checks that provide vitally important information about
potential employees. These organizations could be under negative publicity when incidents
or accidents occur.
Another concern is the treat that residents may pose to one another. This issue could be
addressed by patient background screening program similar to employee preemployment
screening. Checking resident background could be controversial because it could be used
against the future resident. This process should be done only for providing information that
is many to ensure the safety of that resident, other residents, visitors, and staff.
Many LTC residents are not a risk to others, but to themselves. Two significant risk issues
are wandering and elopement. Many residents at LTC suffer from diseases such as
Alzheimer disease, dementia, and other neurological impairments placing them at high risk
