Benefits and Limitations of ERM of United healthcare Group is huge organization and is a Fortune 500 corporation

There are various benefits of using enterprise risk management. The enterprise risk management process has many benefits for handling the risks as well as it can assess the intensity of every risk if it occurred. The company can easily identify, assess, monitor, handle as well as resolve the issues or the risks that are identified by the management teams. The enterprise risk management process for the business strategy identifies as well as prepare the company ready for the threats and dangers with the objectives and the operations. The enterprise management service is the newest as well as evolving discipline for the management of the organization which works purely for handling the risks and to reduce the risk intensity as well.

     The best ever advantage of the enterprise management for risk is that the model has well-defined practices that provide the complete guide to company how the leaders can easily handle the expected or unexpected issues that can cause the failure of the business strategies be harmful for the conduction of the business. As I have chosen UnitedHealth Group Company, there are numerous issues and risks can be appeared in the company’s business plans as well as in the IT-related systems like the digital records of UnitedHealth Group Company.  Furthermore, the company should not only aim at the downside risk while the upside risks, too, when putting it together enterprise risk management initiatives. The traditional approach was focusing on negatives as well as loses from the trade’s rate of interest or the currency or the losses in the financial markets. For example, the losses related to finance could be affected by the interference in the cyber-attacks or the supply chain which impairs the technical and confidential information of the company.

The notable advantages of ERM are as follows:

creation of a more risk-focused culture for the organization

Standardized risk reporting

Improved focus and perspective on risk

Efficient use of resources

Limitation of ERM of United healthcare Group is huge organization and is a Fortune 500 corporation

There is some limitation of enterprise risk management that makes bound the framework as well as in conditions some kind of unexpected risks or issues; the risk management framework may cause failure. Almost all issues may be resolved by proper management, but some flaws exist. The most notable challenges related to enterprise risk management are mentioned in this report. The limitation is of risk management are as follows.

ERM’s Value Assessment of United healthcare Group is huge organization and is a Fortune 500 corporation

                The companies that are using the ERM framework to describe the sufficient value for giving the justification on the implementation of cost in the economy driven by the positive return on raising investment. The decision making of the traditional investment is assessed by using the reward metrics as well as the common risk such as risk-adjusted value on capital, return on assets, as well as the return on equity, so the drivers of ERM value are less perspective. Largely voluntary, the regulatory encouragement, as well as the resulting in a value proposition void of language of the compliance, are remained by ERM.

Privilege

The management is allowed by the program of enterprise risk management for doing qualify for the risks of the company. The problems related to the distribution of risk may be raised by the lawyers of the company for the constituents, external regulators as well as the auditors whenever the information about the risk converted increasingly dollar-based as well as the event-based. The legal exposure, as well as the risk visibility, must be balanced by the companies that are using the framework of enterprise risk management.

Defining Risk of United healthcare Group is huge organization and is a Fortune 500 corporation

It is the ever big challenge is forming a consistent as well as collectively applied risk nomenclature. It is very difficult task because most of the times the risk management leader, as well as the team, are unable to assess and judge the real cause or the issue. It is because when they are going to define it, something or most of the things are not very clear or sometimes not too intense, so the team members as well as the team leader also unable to define the risks properly.

Risk Assessment method of United healthcare Group is huge organization and is a Fortune 500 corporation

The risk management and assessment framework have various methods, tools as well as approaches or methodologies including the online surveys, paper formed survey, historical analysis as well as the interviews. It is very effective but the main challenge is that the exact results cannot be found after doing this. Furthermore, every effort for management of information as well as management of risk has its own value as well as drawbacks challenges or the limitations in account of risk management which are used to determine sustainability.

Roles and Responsibilities of United healthcare Group is huge organization and is a Fortune 500 corporation

There are some key roles and responsibilities which should be clearly defined as well as understood throughout the organization.

CEO and the board of director

They have critical liability for all of the expected as well as unexpected risks. The practices and the approaches of risk management must be discussed once in a while, and the policies related to risk management must be reviewed and permitted.

Senior management

Design, implement, as well as maintain an effective Framework. Develop policies and procedures, create as well as screen the risk appetite, and document normally to the board of directors. Promote a risk-aware culture.

Business units

Identify, assess, measure, monitor, control, and report dangers to senior management. Manage applicable dangers within the framework set up by senior management. Ensure compliance with policies and procedures.

Support functions

Provision of the support to the key businesses of the company within development as well as imposing procedures and policies.

Internal Audit & Compliance

Providing independent assurance as well as monitoring of the efficiency of the ERM Framework.

Risk management

Coordination of the development of the enterprise risk management framework as well as provide expertise in risk management.

What are the key items the company needs to address, and what are the risks associated with it?

There are some key items or things that I have found as well as more important for the UnitedHealth Group. The key items and things are more important and must be kept by the company for the excellent quality of the conduction of work. The key things are listed here as the company should be operational, clinical as well as make sure to provide the safety to the patients; every action of the company related to medical industry should be strategic. Furthermore, the company should be strong financially because in case of emergency the financial condition of the company matters. The human capital and company should be legal as well as self-regulatory. The technology is one of the amazing, as well as the company, should have to keep the technology up to date because the technology keeps the company or hospitals, as well as the technology, is only one thing which is very important for medical industry.

It is the shared responsibility for risk management. The culture where the leaders of the risk management teams of the company to encourage the flow of the communication, as well as the information for the importance of risk management, monitoring, identification, and reporting. The chartered executive risk committees and the chief of risk officers have been hired by some agencies for overseeing the effectiveness as well as the integration risk concepts of the enterprise risk management process within the strategic performance as well as strategic planning activities for measurements across the enterprise.

Recommendations of United healthcare Group is huge organization and is a Fortune 500 corporation

       Some flaws are found in enterprise risk management framework by analyzing the critically in the medical industry. As mentioned, that our company name is UnitedHealth Group that is providing the medical services to the patients as well as managing the medical related problems. We can say this or can name this as a company. In the UnitedHealth Group, various issues are appeared related to the medical healthcare as well as business strategy related risk. The company should need to introduce the enterprise risk management model proper in the company

Conclusion

UnitedHealth Group is among the largest healthcare care organizations in the world. UnitedHealth is an American organization whose headquarter is situated in the city of Minnetonka, Minnesota.  The organization was formed in the year 1977 by Richard T. Burke.  The key products & services of the organization include Uniprise, Specialized Health care, and other health care services. According to the latest statistics the organization has employed 300,000 employees. The organization over the years has experienced growth, and the revenue of the organization has increased drastically in the last few decades. Charter med incorporated company was found in 1974 while to reorganize this company United Health Care Corporation was formulated in 1977. Environment protection is highly necessary for current environment. The customers have become awarded about environment protection. If the organization is not going to focus on environment protection than not only its reputation will decline, but also its profitability will also decrease as a result.

References of Limitations of ERM of United healthcare Group is huge organization and is a Fortune 500 corporation

Banks, E., & Dunn, R. (2004). Practical Risk Management: An Executive Guide to Avoiding Surprises and Losses. John Wiley & Sons.

Brigham, E. F., & Houston, J. F. (2012). Fundamentals of Financial Management. Cengage Learning, 8 серп.

Measham, T., & Lockie, S. (2012). Risk and Social Theory in Environmental Management. Csiro Publishing.

Morning Star. (2019). UnitedHealth Group Inc. Retrieved from http://financials.morningstar.com/ratios/r.html?t=UNH&region=usa&culture=en-US

Niu.edu. (2019). Risk Review Process. Retrieved from www.niu.edu: https://www.niu.edu/risk-management/enterprise/review-process.shtml

SAUNDERS. (2011). Financial Institutions management. Tata McGraw-Hill Education.

Simona-Iulia, C. (2014). COMPARATIVE STUDY BETWEEN TRADITIONAL AND ENTERPRISE RISK management–a theoretical approach. THE ANNALS OF THE UNIVERSITY OF ORADEA, 1-7.

Taylor, B. J. (2017). Decision Making, Assessment and Risk in Social Work. Learning Matters.