Page 10 - CIMA MCS Workbook February 2019 - Day 2 Suggested Solutions

CIMA FEBRUARY 2019 – MANAGEMENT CASE STUDY

changed e.g. as a result of changes in our administrative technology for which we were
unprepared.

Transfer (low likelihood/high impact). In this case, the risk should be shared in some way by
either being passed to someone else (such as an insurer) e.g. the cost of unforeseen accidents,
fire, theft, damaged goods from dental laboratories etc. Crowncare must be prepared for such
eventualities.

Reduce (high likelihood/low impact). In this case, Crowncare needs to consider ways to reduce
the risk. This is normally done by putting controls or procedures in place; although the cost of the
controls should not outweigh the impact of the risk which could include having contingency plans
in place should the risk actually occur e.g. sourcing similar dental materials or products from
alternative suppliers if an existing supplier can’t deliver on time.

Avoid (high likelihood/high impact). Where a risk falls into this category, we must consider
avoiding the activity altogether. This may involve for example, using a supplier that does not
comply with responsible working practices, or not providing training for employees on the
introduction of new technology, both of which are critical to our future success.

It is important to note that the management of risk is a continuous process and Crowncare must
have regular reviews of the risks documented in a risk register. It is important that Crowncare also
considers uncertainty during and after the design, manufacturing, delivery and installation
process of any new technology through contingency and detailing plans of action dependent on
the possible risks that may be identified. These plans will need to include clear guidelines on, for
example, insurance arrangements to avoid costly legal cases e.g. potential side effects of the laser
treatment which may cause surface cracking of dentin and further longer term damage to teeth.

If a new department proves necessary it must have very clearly agreed objectives which must be
in line with those of the core business. These objectives must be supported by formal
documentation clearly setting out their rights, powers and reporting lines to ensure that their
output can be monitored and that their ideas are adopted, providing they comply with the overall
strategic objectives of Crowncare. This is particularly important in the area of risk management
given the significant effect that failure may have on service delivery or overruns on patient
treatment times and the associated effect on profitability and reputation.

The department should be staffed with appropriately skilled employees and clearly seen to be
supported by senior management in order to highlight the importance of the new function. The
Board and particularly the CEO must be seen to back this approach and also be seen to support
the department’s output. A chain of command should be set up so that findings are reported to
the correct person who is sufficiently senior to ensure that recommendations are considered and
options for future risk mitigation strategies evaluated.

Clear communication with staff will be critical to ensure that the new department/system
achieves its objectives. As with the inherent health and safety of dentistry, it should also be made

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