Accountants’ role in healthcare risk management

Drawing on insights from nearly 100 healthcare professionals worldwide, the ACCA report underscores the vital role of enterprise risk management in fostering better decision-making and enhancing patient care. This study emphasises that breaking down departmental silos is crucial for aligning healthcare organisations’ shared objectives of quality care, financial sustainability, and regulatory compliance.

ACCA's new research highlights the need to break down silos in healthcare risk management to improve outcomes. Photo: ACCA

Rachael Johnson, head of risk management and corporate governance at the ACCA, underscored the importance of collaboration. “By collaborating and learning from each other, different departments in healthcare can meet shared objectives more effectively. They also crucially become better prepared for emerging threats and trends,” she said.

The report identifies several enablers of a robust risk culture, including effective communication, cooperative education, and fostering a transparent environment. Cross-functional knowledge-sharing and ethical decision-making are also highlighted as key practices for managing interconnected risks, such as rising cybercrime, fraud, and evolving workforce challenges.

Mark Millar, past ACCA president and non-executive director at East Suffolk and North East Essex NHS Foundation Trust, cautioned against viewing risk management solely through a financial lens. “Understand that risk in healthcare is far more than a financial issue. It is about life and death. Old cultural attitudes viewed people who raised the profile of risk as admitting to failure and subjected them to criticism or censure. A more helpful culture is one that encourages the sharing of information willingly to address challenges and make improvements,” Millar emphasised.

The study provides a comprehensive analysis of how regions around the world are prioritising risks and addressing unique challenges in an interconnected landscape. Africa is striving to unlock the potential of telemedicine while simultaneously addressing infrastructure gaps and corruption risks, which are critical for fostering trust and access.

Similarly, Canada is navigating the complexities of cybersecurity alongside the need to adapt to shifting regulatory landscapes, reflecting a global push for digital resilience.

The United Kingdom, in parallel, is addressing the pressing issue of talent retention in an era of rising living costs and rapid technological advancements, echoing challenges faced by other developed economies.

In the Caribbean, efforts focus on managing climate-induced risks alongside workforce shortages, highlighting the dual impact of environmental and demographic shifts. Ireland’s endeavours to integrate clinical and enterprise risk management underscore a broader need for cohesive systems to mitigate fragmentation, a challenge that resonates across borders in today’s interconnected world.

Despite these regional nuances, the report highlights a universal need for collaboration and a shared understanding of risk management practices across the healthcare sector.

As healthcare systems become increasingly complex, the ACCA report positions accountancy professionals as pivotal players in driving change. From promoting cross-departmental communication to embedding risk cultures, these professionals provide the financial insights and strategic frameworks necessary to build resilient, patient-centred systems.

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