For an organization to be secure from potential online risk, a system of security and compliance should be integrated throughout the supply chain. Organizations that use third-party vendors need added support from risk management procedures and tools to protect their sensitive information from fourth-party breaches. Risk management strategy for security and compliance reveals irregularities within the primary organization however, this process does not necessarily trickle down to fourth-party vendor risks. This relationship between an organization and fourth-party vendors is an open gap for data breaches. Security and compliance strategies may reveal irregularities within the primary organization, but this protection does not necessarily extend to fourth-party vendors. Each third-party vendor handles their own business operations, delegating subcontracts to their own third-party vendors this creates fourth-party vendor risk for the primary organization. Third-party vendors create a new unforeseen threat that is not always accounted for by risk management strategy. Third-party vendors offer many benefits and services in the workplace, such as automating workflow, billing or insurance reimbursement services, telehealth agreements, contract employment services, and supply chain management, but the potential safety and risk compliance concerns should be evaluated. One strategy to alleviate operational stress is by using third-party vendors. Managing healthcare organizations can be difficult for companies to maintain.
HEALTHCARE RISK MANAGER SOFTWARE
Read more: Best Supply Chain Management Software for 2021 Third-Party Vendors According to Gartner, “more than three-quarters of healthcare supply chains reorganized their structure in the past three years.” Vulnerabilities in this integral part of the industry can have an extreme negative impact on a company’s operations and ability to protect sensitive information.Ī simple, effective way to mitigate supply chain risk is to better understand the role suppliers play in the operations of the company. One of the areas targeted by hackers is the healthcare supply chain, which is a particularly complex and interconnected ecosystem. The digital world is an ecosystem of interconnecting levels of information that can make business operations easier to navigate but can also be presented with unforeseen risk for all aspects of operations. There will always be new forms of risk to address, but with a system in play for security and compliance, a significant amount of potential risk can be caught and mitigated. Hackers exploit all areas of healthcare, attacking research labs, hospital systems, and all variations of healthcare organizations. Department of Health and Human Services’ Office for Civil Rights, there was a 25% year-over-year increase in healthcare data breaches in 2020. There was a 25% year-over-year increase in healthcare data breaches in 2020.Īn aspect to consider in risk management is that risk is never truly isolated. This process aids in identifying risk from nth-party suppliers that are able to gain access to sensitive information, such as the data breaches seen in the CI report. Risk management strategies include enterprise risk management, or accounting for threats at each step of operations. Read more: What Are Key Features of Healthcare ERP Solutions? What Is Risk Management?
In the second half of 2020, the CI Security report concluded that more than 21.3 million records were breached. In the 2020 Critical Insight (CI) Healthcare Data Breach report, it was found that new changes in healthcare include employee turnover, a shift to remote work for non-essential employees, and new risks from third- and fourth-party vendors. In a sea of new mandates and best care of practice, sensitive patient information is left exposed to cyberattacks. Unfortunately, these traditional risk mitigation techniques are not enough to combat cyberattacks on medical infrastructure. Risk management strategy “has traditionally focused on the important role of patient safety and the reduction of medical errors that jeopardize an organization’s ability to achieve its mission and protect against financial liability”, according to NEJM Catalyst.
We have seen new treatment centers, vaccines, and mass staffing problems across the United States. Medical liability and reducing an organization’s risk against unseen threats has changed exceptionally since the start of the COVID-19 pandemic.