In last week’s article we dug into the latest Aged Care Quality and Safety Commission (ACQSC) data to reveal these Top 5 Quality Standards Requirements that were Mostly Frequently Found Non-Compliant:

As you can see, appearing again and again in these lists is the word risk. The data shows that across 2020, aged care homes commonly failed to comply with risk management requirements. In light of this, you can bet that the ACQSC Assessors will be cracking down on risk management requirements in 2021.

That’s why in today’s article we introduce you to key risk management concepts and explain the risk management requirements that you will have to meet under the Aged Care Quality Standards.

What is Risk Management?

The International Standard for Risk Management (ISO 31000:2018) defines risk as “the effect of uncertainty on objectives”. Risk management, therefore, is the process of managing uncertainty.

What is Enterprise Risk Management?

There are many ways to manage uncertainty. Aged care workers do it when they pick up clutter that has blocked a walkway or switch on a fan before a room gets too hot. But these kinds of risk management are individual and ad hoc.

When risk management becomes a deliberate process that covers the whole organisation, it is called Enterprise Risk Management.

Enterprise Risk Management is a structured process that assists aged care facilities to predict future events that may impact on their activities, and allows them to take appropriate actions to address the likelihood of the event happening, and/or the impact of the event should it occur.

Benefits of Enterprise Risk Management

Among other benefits, Enterprise Risk Management:

• increases the likelihood of achieving strategic goals and objectives
• encourages proactive management and avoids “firefighting”
• improves the ability to identify and manage future threats and opportunities
• establishes a reliable basis for decision-making and planning
• reduces the likelihood of adverse risk events occurring and mitigates the consequences of these events if they do occur
• enables compliance with legal and regulatory obligations.

Risk Management Requirements Under the Aged Care Quality Standards

Standard 8(3)(d) of the Aged Care Quality Standards requires aged care homes to demonstrate effective risk management systems and practices, including but not limited to the following:

• managing high-impact or high-prevalence risks associated with the care of consumers
• identifying and responding to abuse and neglect of consumers
• supporting consumers to live the best life they can.

What are “effective risk management systems and practices”? Drawing on guidance from the Aged Care Quality and Safety Commission, we can expand on this to say that an effective risk management system is one that:

• identifies and assesses risks to the health, safety and well-being of consumers
• identifies and evaluates incidents and “near misses” (both clinical incidents and incidents in delivering care and services)
• provides information to improve its performance and how it delivers quality care and services
• escalates risks to ensure timely management within and with out the organisation
• continues to monitor risks to consumers and others and take action if a risk has increased.

More Information

CompliSpace recently delivered an online training session for their clients about Enterprise Risk Management for Residential Aged Care Homes. That training is now available as a recording.

For more information on risk management, see our previous articles:

• Residential Aged Care Assessments: What to Expect in 2021
• Is Your Risk Management System Effective Enough to Pass an Aged Care Quality Assessment?
• An Essential Guide to Standard 8 and Governance, Risk and Compliance for Residential Aged Care Boards and Managers