Page 9 - CIMA MCS Workbook February 2019 - Day 2 Suggested Solutions

SUGGESTED SOLUTIONS

CHAPTER NINE

TASK 1‐ RISK AND NEW TECHNOLOGY

Suggested solution

To: Senior Financial Manager
From: Financial Manager
Date: Today
Subject: Risk Management

CROWNCARE can improve its approach to risk by following a formal risk management process as
outlined below.

The key steps for such a process are outlined below.

 Identify risk – dentistry is a complex process with many different services now offered.
There are many interested parties and diverse risks to consider e.g. patients, suppliers,
trade unions, professional associations and regulatory bodies such as the Varentian Dental
Council. This will require a comprehensive approach.
 Analyse the risk by considering the potential impact and likelihood both internally to
Crowncare e.g. the effect on waiting times between appointments and any identifiable
external risk e.g. sourcing IT support for the new technology etc.
 Impact – attempt to quantify the magnitude of the impact if the risk occurs e.g.
inappropriate installation of the new technology resulting in personal injury or insurance
claim
 Likelihood of this happening – attempt to assess the probability of the risk materialising
 Prioritise / rank risks
 Select and implement strategy to deal with risks identified, depending on the likelihood and
impact.

 Monitor and review – we can hopefully learn a great deal in this context from the processes
currently adopted when considering risks in the workplace
 Maintain record of risks and actions taken to deal with them via a risk register
 For a non‐listed company such as CROWNCARE the establishing of a separate Risk
Committee may not be practical, particularly given the current commitment to clinical work
on behalf of the directors and heads of practice. The board composition however should
reflect the complexity of the company’s activities so we may need to consider board
appointments to reflect IT for example. This will ensure that all key activities within
Crowncare are represented from a risk perspective.

Suggested approaches to mitigate/manage risks:

Accept (low likelihood/low impact). Risks which fall into this category can be accepted as a
normal part of business. It is anticipated that the risk is unlikely to occur and even if it does the
consequences can be coped with e.g. failure of the patient arriving for an appointment. It remains
essential however that the risk continues to be monitored to ensure the impact of the risk has not

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