HCS 456 UOP Week 5 Risk Management Wk 5 – Individual: Benchmark Assignment: Risk Management Presentation

Enterprise Risk ManagementWhen working in the health care field, it is vital that one has an understanding andknowledge of enterprise risk management (ERM). I will be discussing how traditional riskmanagement and enterprise risk management are different despite their similarities. I will also bediscussing why the most successful approach nowadays for many organizations is enterprise riskmanagement. This will include value-driven enterprise risk management main drivers and howthey are applied within health care to drive enterprise risk management.Difference between Traditional and Enterprise Risk ManagementAccording to Kenton, W. (2020), “enterprise risk management also known as ERM isknown as a strategy or business plan, which identifies, evaluates, and prepares for varioushazards and other possible disasters, bothfigurative and physical that could potentially hinderthe objectives and operations of an organization”. Traditional risk management is the predictingand assessing of hazards and risks merged with the identification of procedures in order to eludeor reduce their impact. No matter what your role is within your organization, everyone engagesin risk management every day. Despite traditional risk management and enterprise riskmanagement being similar in many ways, they also have some differences. Traditional andenterprise risk management and different in three main areas, which consist of decision making(proactive vs. reactive), insurance, and mode of risk treatment. When it comes to traditional riskmanagement, it is more localized and has a certain outlook when it comes to dealing with the

risks which affect an organization. Traditional risk management is known for managing risk oneat a time, looks at insurable things, reactive and sporadic, and reluctant to taking risk. When itcomes to enterprise risk management, it has a comprehensive view with a wider scope on the riskfactors that an organization faces. Enterprise risk management is known for examining material