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of potential areas of liability: inadequate staffing, floating, chain of command and supervisor
issues (Roussel, 2013).
Risk Management
Risk management is a process that identifies, analyzes and treats potential hazards in a
hospital (Mostafa, 2009). According to Mostafa (2009) risk management in health care is a
structured process for minimizing potential liability to health care providers, avoiding harm to
patients, stabilizing health care providers insurance costs and protecting hospitals from ruinous
financial losses (p 1136). Many hospitals have a risk management department, however the
responsibility doesnt stop there. Nursing leaders should think of risk management as a shared
responsibility. A successful risk management fosters trust and credibility, which means the nurse
leader should not sit in isolation away from everyday operations but should be actively involved
in the functions of the area they manage and work closely with risk management personnel
(Grant & Ballard, 2011). Nurse leaders can be proactive by developing a risk management plan
for their areas, such as implementing an occurrence reporting system.
Conclusion
With more demands for services and the rising costs of healthcare, it is imperative for
nurse leaders to build a culture of safety for their patients and staff. An important part of creating
a safe environment is having an understanding of the laws that surround health care and nursing.
The previous sections only touch on a few of the principles that nursing leaders should be aware
and have a basic understanding of. There is an element of risk of when practicing in health care
today, therefore knowing your states nurse practice act is a great start. Second, having an
understanding of your organizations corporate compliance and liability will help the leader
maintain standards of practice as outlined by their hospitals regulatory organization and identify
potential areas for risk. Last, understanding risk management concepts will allow the nurse
leader to be proactive and prevent potential hazards.