Abstract
Risk management is formally defined as the process by which an organization assesses and addresses its risks. Historically, the role of risk management has been associated with insurance-buying, occupational safety and health, and legal liability management. In recent years managers and physicians alike have begun to recognize that organizational risks are pervasive, that these risks are extraordinarily diverse and complex, and that these risks are not just confined to "insurable" or accident-related situations. They may include risks arising from actions of regulatory bodies, third party payers, hospitals, partners, and employees, in addition to the physiatrist's personal or business investment, management and clinical practice. Furthermore, changing customer and patient preferences and/or expectations make the assessment of risk an even more dynamic and continuous process. This article describes the formal risk management process and suggests ways that physiatrists can apply risk management to their business and clinical practice. In developing this description, physiatrists and their office managers will learn about the overall goals and objectives of risk management, the challenge of identifying and analyzing risks, the tools and treatment options available, and the means by which risk management efforts are effectively implemented.