An assessment of the effectiveness of operational risk management practises at PSMI Westend Hospital.

Abstract

The study was motivated by persistent operational risk exposures which could be pointed in daily operations at PSMI Westend Hospital and challenges have led to failed quality services and smooth running of operations in the organisation. The purpose of the study was to assess the effectiveness of operational risk practices at the organisation and to establish alternatives which can be used to mitigate and take control of the operational risk exposure the organisation is facing. The research explored literature for enhancing an understanding on the categories, measures, factors and management strategies of operational risks. The study took descriptive research design. Data was collected using only self-administered questionnaire thus relying on the quantitative nature of research study. Data analysis was conducted by using Microsoft office suit to generate descriptive and inferential statistics. The research findings of the study indicated that weak operational risk management strategies were being used to management the risk exposures which were affecting the organisation and its service provision as so many challenges were heighted in the study. Alternative strategies on management of risks which arose due to failed process, human error and disruptions of information systems which the organisation uses were also suggested in the study. Based on the findings of the research it was concluded that the organisation should invest in technologies that assist in the detection and monitoring of operational risks, setting of capital reserves which are used to manage operational risks as when they occur and provide refresher courses to all staff such that management of operational risk cannot be a management issues only but rather every staff member’s business.