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This paper examines the increased complexity of the healthcare industry, fueled by increasing reliance on automation, information technology, and the changing regulatory and reform environment. Healthcare organizations face an environment characterized by rapid changes in mandates, technology, and stakeholder expectations, all of which combine to increase the consequences of historical risks and generate new risks. Existing informal, siloed, and reactive risk management processes cannot effectively identify and manage the greatest, strategic-level risks facing the industry. Through years of working with commercial and government clients, Booz Allen Hamilton, a leading strategy and technology consulting firm, has developed a proven strategic risk management methodology to ensure the effective management of these strategic risks.