![Page 1: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/1.jpg)
Health Care Enterprise Risk Management
Are You Ready for the “Cloud”?
Presented by:
Dr. Jack Hampton, PrincipalPrinceton Consulting Group
1
![Page 2: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/2.jpg)
Question
Is this the Cloud?
2
![Page 3: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/3.jpg)
Answer
Could be for Liability Insurers
3
![Page 4: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/4.jpg)
Premise
Two distinct areas for health care liability.
• Mediocristan. Few extreme successes or failures. • Extremistan. Rare occurrences with widespread impacts.
Let us call these “normal times” and “extreme times.”
Hats off to Nassim Taleb, author of The Black Swan
4
![Page 5: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/5.jpg)
Normal Times
In the 95% world, the likely, best, and worst outcomes look something like this:
Worst Best
2σ Expected 2σ
5
![Page 6: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/6.jpg)
Extreme Times
In the “non-normal” 5% world, the 95% risk analysis reminds us of other possible outcomes.
2.5% 95% 2.5%
6
![Page 7: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/7.jpg)
Normal Times
Liability risk is largely under control in normal times.
• Traditional risk management• Best practices• Quantitative tools• Accounting audit• Internal audit• Compliance• Loss control
7
![Page 8: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/8.jpg)
Extreme Times
Risk is not under control in extreme times.• Identify changing conditions• Share changing conditions• Think about changing conditions• Expect the unexpected
8
![Page 9: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/9.jpg)
Can ERM Handle Extreme Times?
Areas where ERM is most developed: Financial Services Companies Electric Utilities Hospitals
9
![Page 10: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/10.jpg)
Financial Services Companies.
Lehman Brothers Washington Mutual AIG Merrill Lynch Grade of F
10
![Page 11: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/11.jpg)
Electric Utilities Enron’s 38 Electricity Plants Pacific Gas & Electric Bankruptcy TEPCO’s Fukushima Daiichi Nuclear Disaster Grade of C
11
![Page 12: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/12.jpg)
Hospitals
Avoidance of “Never events” Complex successful procedures and technology
12
![Page 13: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/13.jpg)
Hospitals
Offset. In the U.S., negligence allegations of 250,000 injuries or deaths annually
Grade of A minus
13
![Page 14: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/14.jpg)
Question
Why do hospitals receive a higher score for effective risk management?
14
![Page 15: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/15.jpg)
Answer
Hospitals receive a higher score for effective risk management because:
They are prepared for extreme events.
15
![Page 16: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/16.jpg)
Enterprise Risk Management
Comprehensive management of hazard, compliance, operational, financial, and other risks.
Breaking down organizational silos that failed to share and coordinate risk management.
Greater senior management and board of director roles in risk management.
16
![Page 17: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/17.jpg)
Contributions of ERM
ERM contributions are:
#1. Upside of Risk#2. Risk Owners#3. Alignment with Business Model #4. Central Risk Function#5. High-tech Platform
17
![Page 18: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/18.jpg)
Question
Can enterprise risk management help reduce liability exposures in healthcare?
18
![Page 19: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/19.jpg)
Answer
Yes, in normal times at a provider: Parking Lot. On camera. Entranceway. On camera. Limited access. Admissions. Full disclosure. Verification. Room Assignment. Enter into care. Care. Testing, diagnosis, treatment Recovery. Treatment. Monitoring. Departure. Standard processes. Parking Lot. On camera.
19
![Page 20: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/20.jpg)
Question
What risk management processes are found in a health care facility?
20
![Page 21: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/21.jpg)
Answer
Health care risk management processes that create liability exposures.
Expectations. People have them. Irrational Behavior. People have illogical expectations. Expected Losses. They occur. Unexpected Losses. They also occur.
21
![Page 22: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/22.jpg)
Question
What should you expect of a health care facility with regard to liability risks?
22
![Page 23: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/23.jpg)
Answer
Excellent risk management procedures helped by luck.
We can be smart. We rely to a large degree on luck. Can we help ourselves to be lucky?
23
![Page 24: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/24.jpg)
Helping out Luck
Technology is the ally to “luck” in risk management. Particularly two factors:
The “Cloud.” A linkage of computers. Non-legacy systems. New tools for understanding risk.
24
![Page 25: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/25.jpg)
What is the “Cloud?”
The “cloud” refers to providing computing service from a location not known to the user with software not fully maintained by the user. Services include:
SoftwareStorage of dataAccess to data
25
![Page 26: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/26.jpg)
What is a Legacy System?
This is an information and storage structure using old technology. It commonly has been:
Built over a period of time with different levels of technology.
Patched to avoid obsolescence, with many of the patches not understood.
Created as isolated systems that do not share information or capabilities.
26
![Page 27: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/27.jpg)
What is a Non-Legacy System?
It is a high-tech platform where: A company can conduct all its information technology
activities. All the systems can communicate. The system itself is maintained on the cloud. The company does not have to maintain the software or
systems. The company does not have to provide security for its
data or systems.
27
![Page 28: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/28.jpg)
Amazon Elastic Compute Cloud (EC2)
EC2 allows users: To rent virtual computers on which to run their computer
applications. To run software provided by third-party vendors. Create and terminate server connections. Pay by the hour for usage.
28
![Page 29: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/29.jpg)
IBM Holistic Services
Using the cloud and a non-legacy system, IBM helps companies:
Simplify and standardize information technology infrastructure.
Create efficient and flexible systems for the development of new services.
Deliver services to customers and suppliers. Build communications, versatility and security in an
integrated system.
29
![Page 30: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/30.jpg)
Riskonnect
A complete, “cloud,” non-legacy risk management system.
30
![Page 31: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/31.jpg)
Riskonnect Details
31
![Page 32: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/32.jpg)
Non-legacy “Cloud” Risk Management
Riskonnect system uses: Visual Risk Clusters. The relationships and interaction of
risks on the screen.
Risk Management Details. Characteristics of the risk, likelihood, expected impact, mitigation activities, scheduled future events, and other backup information can be accessed in seconds.
32
![Page 33: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/33.jpg)
Question
What is the best way to augment the comprehensive, high-tech risk management systems?
33
![Page 34: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/34.jpg)
Answer
Incorporate weak signals.
34
![Page 35: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/35.jpg)
What is a “weak signal?”
It is an early warning of change. Starts at low volume Is usually recognized by pioneers or special groups Is often denied by experts and businesses Grows over time Can have large risk impact
35
![Page 36: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/36.jpg)
Weak Signals
We cannot predict extreme events.Can we see “weak signals?”Are they part of the big picture?Can we respond to them?
36
![Page 37: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/37.jpg)
Question
Political Paralysis.•This is a signal. What are the possible impacts on health care?
37
![Page 38: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/38.jpg)
Question
Unsustainable Government Budgets.•This is a signal. What are the possible impacts on health care?
38
![Page 39: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/39.jpg)
Question
Declining Job Pool.•This is a signal. What are the possible impacts on health care?
39
![Page 40: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/40.jpg)
Question
Aging Population.•This is a signal. What are the possible impacts on health care?
40
![Page 41: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/41.jpg)
Question
Planetary Pollution.•This is a signal. What are the possible impacts on health care?
41
![Page 42: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/42.jpg)
Question
Health Care Reform.•This is a signal. What are the possible impacts on health care?
42
![Page 43: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/43.jpg)
Crude Oil
This is a signal. Let us explore it in an ERM framework.
Gas at $5 to $12 a gallon. We will look for the big picture. We will acknowledge the small picture.
43
![Page 44: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/44.jpg)
Picture
Global crude oil in barrels per day:
•2011 Consumption: 87 million•2006 Refining: 84-86 million•2011 Refining: 84-86 million•2014 Global Need: 90-92 million
44
![Page 45: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/45.jpg)
Small Picture (1)
Should we increase the production of crude oil?
45
![Page 46: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/46.jpg)
Big Picture (1)
Should we expand production to:
• Lower prices?• Lower profits?• Reduce oil reserves?
46
![Page 47: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/47.jpg)
Small Picture (2)
Should we build a new refinery?
47
![Page 48: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/48.jpg)
Big Picture (2)
Should we invest $2 billion to:
• Drive down the price of oil• Lower our profits by $1-2 billion a year?
48
![Page 49: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/49.jpg)
Small Picture (3)
Where can we build new refineries?
49
![Page 50: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/50.jpg)
Big Picture (3)
It does not matter:• Renovated refineries are replacing obsolete refineries.• Few new refineries are planned.• It takes five or more years to construct a refinery.• Yanbu (Canada) proposed 2006. Target completion is
2015.
50
![Page 51: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/51.jpg)
Picture
Crude Oil in Millions of Barrels per Day:
2011 2013 2014U.S. Consumption 19M 19M? 19M?Chinese Consumption 9M 10M 11MIndian Consumption 3M 4M 5MRefining Capacity 86M 86M 87M
51
![Page 52: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/52.jpg)
Small Picture
Proposed Solutions:• Natural gas• Coal• Railroads• Waterways• Public transportation
52
![Page 53: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/53.jpg)
Big Picture
Challenge Assumptions:• Locations. Can our customers and employees get to us?
• Disruption. Will energy shortages damage or destroy supply lines or markets?
• Crisis Management. What must we do to be ready for “black swans” from fossil fuel shortages?
53
![Page 54: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/54.jpg)
Question
Did AIG have the big picture in 2006-2008?
54
![Page 55: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/55.jpg)
Answer (1)
55
Board of Directors
CriticalBenchmarks
OversightControls
U.K.CreditDefaultSwaps
CreditStandards
Unit #2
TotalExposure
Unit #1
![Page 56: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/56.jpg)
Answer (2)
Warren Buffett in 2003. Charlie Munger and I . . are of one mind in how we feel
about derivatives. We are alert to . . mega-catastrophe risk. That posture makes us . . apprehensive about the
burgeoning quantities of long-term derivatives contracts and . . uncollateralized receivables.
Derivatives are financial weapons of mass destruction.
56
![Page 57: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/57.jpg)
Big Picture (1)
Build and use technology to:• Identify weak signals• Integrate risk planning• Share information• Identify alternatives• Create strategies
57
![Page 58: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/58.jpg)
Big Picture (2)
Technology is the key to getting a payoff from risk management.
• Not more money• Not more systems• Not more committees• Not more people• Not more details
58
![Page 59: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/59.jpg)
Big Picture (3)
Modern management.• Could be less money.• Better systems.• Only committees when needed.• Not more people except for Central Risk Function.• Not more details but better organization of information.
59
![Page 60: Health Care Enterprise Risk Management Are You Ready for the “Cloud”? Presented by: Dr. Jack Hampton, Principal Princeton Consulting Group 1](https://reader038.vdocuments.site/reader038/viewer/2022110304/551c1864550346ad4f8b574b/html5/thumbnails/60.jpg)
Conclusion
A systematic risk process does have value.• We cannot predict extreme events.• We can only understand risk and opportunity.• We can scan in advance.• We can share what we learn.• We can incorporate the lessons in liability underwriting.
60