The project will explore the management plan with focus on the Medstar Washington Hospital Center.  The Medstar Washington Hospital Center was established in 1958, and it is the fast growing and stable private hospital in Washington, D.C. Risk management plays a significant role in the organization’s success. The paper further explains the significance of right risk identification and outlines all the risks that the hospital faces. There is a discussion of the necessity of balanced and accurate risk measurement methods. Risk management techniques will also be discussed and this included hedging and auditing. The rest of the proposal explores the benefits associated with an effective risk management plan and how the same contributes to the organization’s success. In the plan, there is further discussion on employees’ insurance plans, and the benefits link to reinsuring with other insurance companies. Recommendations are drawn on hedging via forward and future contracts. In the conclusion part of the project, there is discussion of various insurance products.

Risk Identification
To remain relevant in the competitive global market, it is important for the company to identify all the associated risks that might interfere with its operations. Risk management should be applied in all kinds of decisions. According to Merna & Al-Thani (2008), risk identification is determining the possible risks and their impacts on the company’s projects or decision. The risk identification process also entails determination of the effects of decisions on the different sections of the company. This included determining whether the objective has risks or whether the identified risk can impact on the project’s total cost.

The company has continued to introduce not only new products but also marketing strategies. This decision impacted greatly on the firm; hence the firm opted for the old branding system. In making the decision to rebrand, the firm should have examined the risks associated with the drastic decision. Identifying all the possible risks could have assisted the company. For example, Medstar Washington Hospital Center firm could have realized the importance of taking into consideration the consumers feelings. Quoting the firm’s president, Donald Keough during the incident, “We did not understand the deep emotions of so many of our customers for Medstar Washington Hospital Center” (Ross, 2015).

There other risks associated with health. For example, in the U.S, the concern was on the obesity risks. This was likely to affect the volume of the sales, as the consuming levels would increase due to fear of obesity. Consequently, poor quality and water scarcity would also interfere with the firm’s system of production. For example, the production costs are likely to increase and the capacity level reduced.  In the recent past, there have been fluctuations in the exchange rates of foreign currency. This is likely to interfere with the firm’s net profit.  There has been heightened competition between beverage companies in addition to between different bottling partners; for example, the deteriorating financial conditions between the firms are likely to impact negatively on the company.  Increase in the energy costs impacts on the company’s profitability. Changes in regulations and laws pertaining to packaging are likely to increase the costs and minimize the products’ demand.   In addition unfavourable political and economic conditions such as legal or litigation proceedings could expose the firm to different financial constraints. Other risks that the firm are likely to experience are weather conditions, taxation in the taxation requirements and accounting standards, changes in the regional and global catastrophic events and changes in the regulations (Medstar Washington Hospital Center, 2009). The mentioned factors are likely to interfere with the company’s operations. Based on the identified risks, it is important for the Medstar Washington Hospital Center Company to put in place risk measurement plans in the future decisions.

Risk Measurement Techniques 

There are different measurement techniques for companies. As per the Securities and Exchange Commission regulations, Medstar Washington Hospital Center Company has an independent auditor. The role of the auditor is not only to evaluate but also supervise the income and financial reports.  Some of the measurement techniques include running risks procedures and assessments to review and control the firm’s transactions. However, there are different reasons that might contribute to misidentification of risks and these might include sea risks, estimation bias, poor patterns, organizational environment and error in the intelligence data. Citing Charette, (1990-1991), risk identification is the most significant told in measuring and managing risks.  On measuring risks, it is important to classify the risk first. Knowing the different types of risks is important as it simplifies the process of identifying the most suitable measurement procedure. Medstar Washington Hospital Center Company has potential investment opportunities; hence it has different potential risks that even affect the product. Risk measurements is more than just identifying and classifying the risks and include information such as recognizing the cognitive biases, expert opinions, estimating the probabilities and carrying out surveys on the populations. Therefore, it is recommendable for the risk measurement process to remain balanced. Focusing on the Medstar Washington Hospital Center Company, the firm has adapted risk measurements techniques, which has enabled it to effectively manage its production and marketing unit. This makes it to continue producing quality products and services. The measurement techniques help the company to manage risk.

Risk management techniques
Medstar Washington Hospital Center Company has different facilities spread across U.S and globally, and this makes it to be subjected to environment regulations and laws. Throughout the various subsidiaries and divisions, the company has signed collective bargaining agreements. In the firm’s websites, there are amendments and reports that documents in all the transactions as per the 1934 Securities and Exchange Commission’s Act. Carrying out a risk analysis or assessment as a way of preventing risks adheres to risk identification techniques, which enable a clear focus on the identification and classification of the risks.

References
Charette, R. N. (1990-1991). The Risks with Risk Identification. Retrieved on June 2, 2011             from www.itmpi.org/assets/base/images/…/robertcharette/RISK_ID.pdf
Medstar Washington Hospital Center. (2011). The Medstar Washington Hospital Center’s Bottling Association. Retrieved June 5, 2011from
http://www.ccbanet.com/front/aboutus.html
Financing Strategy. 2011. Medstar Washington Hospital Center Hellenic Bottling Company S.A. Retrieved on June 5,             2011 from http://www.coca-  colahellenic.com/investorrelations/Debtholders/Financingstrategy/
Kennon, J. (2011). Risk Management: 6 Warning Signs a Company May Be Headed for     Trouble. Retrieved on June 5, 2011    from http://beginnersinvest.about.com/od/investing101/a/aa072105.htm
Merna, T., & Al-Thani, F. (2008). Corporate risk management (2nd ed.). Chichester,         England: John Wiley & Sons, Ltd.
Meyer, J. (2009). Mitigating Risk. Wright State University, Ohio (page 4).
Ross, M.E. (2005). It seemed like a good idea at the time . MSNBC. Retrieved June 5,       2011from
http://www.msnbc.msn.com/id/7209828/ns/us_news/t/it-seemed-good-idea-time/

 
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