Running Head: FIRM RISK SCORECARD 1

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Firm Risk Score Card

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Student’s Name

Institution of Affiliation
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Course

Date
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 FIRM RISK SCORECARD 2

The organization is ABC Dialysis Unit, with 500 active patients, receiving 1500 annual

patient treatments. It is located in a lower socioeconomic area of an urban environment. The

table below shows the FIRM Risk Score Card for the organization

Financial Components of FIRM Risk Score Card

Index Description Score
1.1 Inadequate funds for expansion 1
1.2 Lack of proper internal control structures 0
1.3 Poor revenue collection 3
Total Score for Financial Components 4
Infrastructural Components of FIRM Risk Score Card
2.1 Insufficient EHRs and IT infrastructure 2

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2.2 Lack of Business Continuity Plans 2

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2.3 Inadequate equipment and physical resources 4

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Total Score for Infrastructural Components 8

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Reputational Components of FIRM Risk Score Card

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3.1 Poor standards of Care 2
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highly regulated healthcare 3
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3.3 High expectation for compliance 4
Total Score for Reputational Components 9
Marketplace Components of FIRM Risk Score Card
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4.1 Very competitive marketplace 1

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4.2 Aggressive competitors 2

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4.3 High customer expectations 4

Total Score for Infrastructural Components 7
Score Description of Level of Risk Score
Description
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of Level of
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0 No Risk 3 Medium
Risk
1 Little Risk 4 High Risk
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2 Some Risk 5 Extreme

Risk
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Requirements to Mitigate the Component with the Highest Score.

The risk with the highest score is reputational risk at 9 index. The requirement to mitigate

the risk with the highest score is to first of all implement measure that will ensure that some of

the risks in this department is transferred and shared to other departments that scored lower in

risk index level. Transferring the risks from this department to other departments will lead to a

great reduction in the level of risk index (Hopkin & Institute of Risk Management, 2010).

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 FIRM RISK SCORECARD 3

Alternatively, control measures may be implemented in this department so as to minimize the

likelihood and impact of the risks identified. This tool is helpful in reassigning responsibility and

accountability to the department that has the capacity to deal with the risk.

Another tool required for risk mitigation is acceptance or assuming the risk at all. This

involves acknowledging that the risk is part of the department and then deliberately ignoring

without taking any measure to put it under control. The project leader must however approve the

acceptance of the risk if it is within the manageable limits that the company can tolerate.

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Risk avoidance is a tool used to adjust the programs requirements and material constraint

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in the departments with the highest level of risk index (Hopkin & Institute of Risk Management,

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2010). It will be useful in reducing or eliminating the risks identified due to changes in schedule,

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technical requirements or even funding. Equally, the risk may be put under close surveillance and

monitoring to ascertain the changes that may reduce the risks.

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 FIRM RISK SCORECARD 4

References

Hopkin, P., & Institute of Risk Management. (2010). Fundamentals of risk management:

Understanding, evaluating, and implementing effective risk management. London: British

Computer Society

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