Research On Financial Risk Management Of D Public Hospital Based On COSO-ERM New Framework

In China,public hospitals occupy most of the medical resources.Along with the development of the new medical reform,the government and people put new demands on public hospitals,which makes the financial risk management of hospitals become more challenging gradually during this period.Therefore,in the process from discovering risks to preventing risks,it is very important for managers to view financial risks from what Angle.The new COSO-ERM risk management Framework was officially released in 2017.On the basis of the old framework,it puts forward five basic elements:governance and culture,strategy and goal setting,performance,review and revision,information communication and reporting,and focuses more on the strategy and performance of the organization’s financial risk management.As a public institution with balance subsidy,public hospitals not only have the governance characteristics of administrative institutions,but also have the risk characteristics of for-profit enterprises,which makes them encounter higher challenges in preventing financial risks than other organizations.The COSO-ERM risk management framework can promote the standardization,strategy and performance of the financial risk management of public hospitals from different angles,and meet the needs of the financial risk management of public hospitals.This paper takes the health system environment of public hospitals in China as the background,takes D public Hospital of Zhejiang Province as the research object,starts with the risk management framework of COSO-ERM(2017),discusses the feasibility of applying COSO-ERM 2017 to the financial risk management of public hospitals,and combing relevant literature.The main risks of Zhejiang public hospitals and D Hospital were investigated and analyzed by field investigation and other methods.Then,the paper studies the problems and causes of risk management in D hospital,analyzes and concludes the overall situation of five problems in financial risk management in D hospital: lack of governance and culture,mismatch between strategy and goal,inadequate combination of performance and risk management,failure of review and revision,inadequate information communication report.Next,the problems existing in D hospital’s financial risk management are combined with the COSO-ERM framework and corresponding optimization countermeasures are proposed.Finally,based on the research results of D Hospital,the enlightenment for other similar hospitals is summarized.The main content of this paper is to study the problems existing in the financial risk management of D Hospital.In order to enhance the financial risk management ability of D Hospital,fill the research gap of financial risk management of public hospitals from the perspective of COSO-ERM,and enrich the existing research on financial risk management.