The underlying premise of enterprise risk management is that the Company exists to provide value for its stakeholders – customers, employees, and shareholders. Like any business, every Company faces some uncertainty, and the challenge for management is to determine how much uncertainty to accept as it strives to grow stakeholder value. Uncertainty presents both risk and opportunity, with the potential to erode or enhance value. Enterprise risk management enables senior management to effectively deal with uncertainty and associated risk and opportunity, enhancing the capacity to build value. Value is maximized when management sets strategy and objectives to strike an optimal balance between growth and return goals and related risks, and efficiently and effectively deploys resources in pursuit of the entity’s objectives. These capabilities inherent in enterprise risk management help management achieve the Company’s performance and profitability targets, and minimize loss of resources. Enterprise risk management helps ensure effective reporting and compliance with laws and regulations, and helps avoid damage to the Company’s reputation and associated consequences. In sum, enterprise risk management helps the Company get to where it wants to go and avoid pitfalls and surprises along the way. Enterprise risk management encompasses:
• Aligning Risk Appetite and Strategy
• Enhancing Risk Response Decisions
• Reducing Operational Surprises and Losses
• Identifying and Managing Multiple and Cross-Enterprise Risks
• Seizing Opportunities
• Improving Deployment of Capital
• Leveraging Talent, Structure, Process, and Capital
Marketplace and Quality Assurance Presentation - Vincent Chirchir
Enterprise Risk Management (ERM) Framework 2020
1. All Rights Reserved. Copyright Disclaimer Under Section 107 of the Copyright Act of 1976. Allowance is Made for “Fair Use” for
Purposes Such as Criticism, Comment, News Reporting, Teaching, Scholarship, and Research. Fair use is Permitted by Copyright
Statute that Might Otherwise be Infringing. Education, and Personal Use Tips Included. No Copyright Infringement Intended.
Cited Work(s) Are the Property of the Author(s) / Copyright Holders. This Information Does Not Constitute Financial, Tax,
Insurance, nor Legal Advice. Consult with a Licensed Professional Before Undertaking Any Important Business Decision(s).
Richard Swartzbaugh
End-to-End
Talent Management
25. 25
3. Enterprise Risk Management Framework – Sample Completed SWOT Framework
STRENGTHS
Admissions/Marketing department
Patient satisfaction
Therapy team
Cleanliness of community
New ED, SSD
Support and positive attitude of Medical
Director
WEAKNESSES
Internet connectivity
Leadership of DON
Nursing skills
Overtime/Double time %
Staff retention
Reputation with Identity Medical
Group/Valley Care IPA
2 Stars
OPPORTUNITIES
More training: Licensed Nursing Staff
increase competencies
Accepting clinically complex patients
Rate change with Gold Coast and
dedicated bed program
Increase Advisory/physician board (ortho
and MD from Identity)
Road to Recovery and other programs –
72 hr observation unit, etc.
Improve dining experience/physical plant
Online presences – update website –
individual community websites
THREATS
Competition – Greenfield (Fillmore) –
renovations of dining and resident rooms
http://www.gccfillmore.com/ - functional
website
Competitor SNFs paying more for NOC
CNAs.
Enterprise Risk Management (ERM)