A proposed enterprise risk management model for health organizations

• Published in: Journal of risk research Vol. 22; no. 4; pp. 513 - 531
• Main Authors: Etges, Ana Paula Beck da Silva, de Souza, Joana Siqueira, Kliemann Neto, Francisco José, Felix, Elaine Aparecida
• Format: Journal Article
• Language: English
• Published: Abingdon Routledge 03.04.2019; Taylor & Francis Ltd
• Subjects: Case studies; Corporate governance; Decision making; economic risk analysis; Enterprise risk management; Health care industry; Hospitals; Literature reviews; Motivation; Organizational performance; Risk assessment; Risk management; risk management and health; Transparency; Validity; Variability
• ISSN: 1366-9877; 1466-4461
• DOI: 10.1080/13669877.2017.1422780

Health care organizations are environments with high management complexity and subject to a constant exposure to risks. Enterprise risk management (ERM) has been studied and applied in different economic environments with the aim of improving organizational performance. However, the health sector still suffers from a lack of attention in this context, in particular with regard to the need for a high degree of financial transparency and for the establishment of process-orientated management, and this provides the motivation for the study described in this paper. An ERM model for health organizations is proposed, based on a systematic literature review and on seven case studies in Brazilian hospitals. An approach to economic risk assessment using indicators such as the cash flow at risk and the variability of costs and receipts from the proposed model is suggested. The health organizations involved in the case studies all interpret ERM as a source of information contributing to corporate governance, and the indicators listed provide constructive data for improvement-driven decision-making. Given the interest expressed by the organizations involved, further application and validation of the proposed model in subsequent studies is suggested.