CLO2 - Levels of Risk Analysis .pdf

HCMT3006 Risk Management in Healthcare Settings Risk Analysis: Severity & Likelihood (CLO2) Assessing Severity: Risk Analysis - Severity Severity determination involves evaluating the potential impact of a risk event. It is measured on a scale, often from 'Negligible' to 'Catastrophic', considering...

HCMT3006 Risk Management in Healthcare Settings Risk Analysis: Severity & Likelihood (CLO2) Assessing Severity: Risk Analysis - Severity Severity determination involves evaluating the potential impact of a risk event. It is measured on a scale, often from 'Negligible' to 'Catastrophic', considering factors such as financial loss, health and safety implications, and operational disruption. This assessment helps in prioritizing risks based on the intensity of their impact. Assessing Severity: Tools and Techniques: Risk matrices to visualize and assess impact levels. Expert consultations for specialized risk assessments. Historical data analysis to understand past incidents and trends. Risk Analysis - Severity Severity Determination in Risk Assessment Severity determination involves evaluating the potential impact of a risk event. It is measured on a scale, often from 'Negligible' to 'Catastrophic', considering factors such as financial loss, health and safety implications, and operational disruption. This assessment helps in prioritizing risks based on the intensity of their impact. Risk Analysis - Likelihood Assessing Likelihood: Estimating the probability of a risk occurring based on historical data and predictive modeling Considering external factors like regulatory changes or pandemics Likelihood assessment gauges the probability of a risk occurring. It is usually quantified using a frequency scale ranging from 'Rare' to 'Almost Certain'. Data analysis, historical records, expert judgment, and predictive models are methods used to estimate the likelihood of risk events. Risk Analysis - Likelihood Tools and Techniques: Statistical models to quantify risk probabilities. Scenario analysis for understanding different risk outcomes. Trend analysis to identify emerging risk patterns Combining Severity and Likelihood: Prioritizing Risks Using a risk matrix to categorize and prioritize risks Focusing resources on high-severity, highlikelihood risks Risk Matrix Explanation: Visual tool to plot risks based on their severity and likelihood Helps in making informed decisions about risk prioritization Developing a Risk Matrix A risk matrix is a tool that combines severity and likelihood assessments to rank risks. The matrix format allows for easy visualization and prioritization, with risks classified into categories such as 'Low', ‘Moderate’ 'High', and ‘Very high', guiding decision-makers on where to focus risk management efforts. Likelihood rated as rare, possible, and almost certain Visual Representation: Risk Matrix Likelihood/Severity 1 2 3 4 5 5 (Almost Certain) Low Low Moderate High Very High 4 Low Low Moderate High High 3 (Possible) Low Moderate Moderate High High 2 Low Moderate Moderate High High 1 (Rare) Very Low Low Moderate Moderate High In this matrix, the risk of patient falls is placed at "Moderate" severity and "Possible" likelihood, requiring a balanced approach to mitigation. Use Case Study to Illustrate Risk Management Strategies Overview of different strategies (or responses) Avoidance: Eliminating the risk entirely Reduction: Minimizing the impact or likelihood of the risk Sharing: Transferring risk to another party (e.g., through insurance) Retention: Accepting the risk and preparing for its impact Selecting the Right Strategy: Based on the risk's severity, likelihood, and the organization's capacity Involves balancing costs, benefits, and feasibility of each strategy Risk Response Strategies Risk response strategies are the actions taken to manage risks. 'Reduce' involves mitigating the impact or likelihood of a risk. 'Avoid' means changing plans to circumvent the risk. 'Transfer' involves shifting the risk to a third party. 'Accept' is acknowledging the risk and preparing to handle its consequences. Preparing a Risk Register A risk register is a comprehensive document that records all identified risks, their severity, likelihood, response strategies, and current status. It is a living document that is updated regularly and serves as a tool for tracking risk management activities across the lifecycle of a project or within an organization. Risk Management Strategies Risk Management Strategies Overview of different strategies (avoidance, reduction, sharing, retention) Avoidance: Eliminating the risk entirely Reduction: Minimizing the impact or likelihood of the risk Sharing: Transferring risk to another party (e.g., through insurance) Retention: Accepting the risk and preparing for its impact Selecting the Right Strategy: Based on the risk's severity, likelihood, and the organization's capacity Involves balancing costs, benefits, and feasibility of each strategy Risk Response Strategies Risk response strategies are the actions taken to manage risks. 'Reduce' involves mitigating the impact or likelihood of a risk. 'Transfer' involves shifting the risk to a third party. 'Avoid' means changing plans to circumvent the risk. 'Accept' is acknowledging the risk and preparing to handle its consequences. Examples Reduce (Mitigate) Example: Avoid Example: A hospital identifies that the risk of post-operative infections is high. To reduce this risk, they might implement stricter sterilization procedures, improve surgical staff training, and increase patient monitoring post-operation. If a particular surgical procedure has a high risk of complications due to an outdated piece of equipment, the hospital may decide to stop offering that procedure until they can acquire the new, safer equipment. Examples Transfer Example: A clinic may purchase malpractice insurance to transfer the financial risk of a lawsuit to an insurance company. This way, if a malpractice claim is made, the insurance company would bear the financial burden, not the clinic. Accept Example: In some cases, a healthcare facility may recognize that there are inherent risks in providing certain types of care that cannot be mitigated, avoided, or transferred. For instance, they might accept the risk of a power failure by having a plan in place to use backup generators and ensuring that all staff know the emergency procedures. Preparing a Risk Register A risk register is a comprehensive document that records all identified risks, their severity, likelihood, response strategies, and current status. It is a living document that is updated regularly and serves as a tool for tracking risk management activities across the lifecycle of a project or within an organization. Conclusion and Best Practices Best Practices: Proactive risk identification and assessment Continuous monitoring and adaptation Engaging all levels of staff in risk management Learning from past incidents and near misses