Certified Professional in Health Care Risk Management (CPHRM) 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

What is the primary purpose of risk management in healthcare organizations?

To increase profits through aggressive investment strategies

To facilitate the prevention of adverse consequences and minimize accidental losses

The primary purpose of risk management in healthcare organizations is to facilitate the prevention of adverse consequences and minimize accidental losses. This involves identifying potential risks that could lead to harm or loss, assessing their likelihood and impact, and implementing strategies to mitigate these risks effectively.

By focusing on prevention rather than elimination, healthcare organizations can create a safer environment for both patients and staff while maintaining operational efficiency. Effective risk management also safeguards the organization’s assets, reputation, and resources, ultimately enhancing patient care and safety.

Approaches such as staff training, policy development, and incident reporting systems are all part of a comprehensive risk management strategy aimed at reducing the occurrence of negative events and their associated costs. Thus, the emphasis is on proactive measures that help avoid adverse situations rather than simply reacting after they occur.

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To eliminate all forms of risk from the organization

To outsource all risk to third-party agencies

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