Leaders of healthcare organizations must focus on compliance and risk management in order to ensure minimal data breaches, financial consequences, or reputational loss.
However, risk management and compliance have a few distinctions despite being very similar. While they can help improve the security and integrity of your operations, they have unique definitions that we’ll explore in this blog post.
Let’s discuss where risk management and compliance differ. And if you need state-of-the-art hospital risk management software for your organization, reach out to ComplyAssistant today.
Related Reading: What Are HIPAA Risk Assessments?
Compliance means that you are meeting the requirements, regulations, or standards set forth for your industry. When it comes to healthcare, it typically refers to complying with regulations such as HIPAA.
This regulatory compliance allows you to maintain operations, prevent loss of insurance, otherwise avoid shutdowns or legal actions.
According to HIPAA, proper risk management involves the following:
- Implement sufficient security measures to reduce vulnerabilities and risks.
- Demonstrate that the organization identifies improperly stored information, controls it, and eliminates it.
- Mitigate the interception of electronic protected health information (PHI).
- Update procedures in response to new threats or risks.
Again, risk management and compliance are very similar. However, compliance helps you stay protected from unique risks. Risk management is a more general approach that looks to reduce risks across additional contexts.
Compliance is more prescriptive, in other words, there are specific rules and regulations that you must adhere to. Risk management is more predictive — using more creative and technological workflows to identify risks that may not be clear but still require immediate action.
If you don’t comply with regulations, it can lead to penalties, fines, and even reputational damage. In essence, there is a checklist of sorts that must be followed in order to ensure regulation.
Risk management involves more decision making and subjective analysis, while still relying on technology to make proper assessments.
You can actually achieve compliance management and risk management simultaneously. These two concepts can go hand-in-hand when you have the right tools and data at your disposal.
Don’t leave compliance or risk management to chance. There is a difference between legal risk and compliance risk. Still, you need to have both of these concepts well planned out in order to minimize consequences for your healthcare organization and the communities that you serve.
If you have any additional questions about similar topics — such as the difference between risk governance and risk management — reach out to ComplyAssistant today. Schedule a free demo to learn more and transform your organization.