HCA 610 Module 5 DQ 1
Recent turmoil in the capital markets underscored for hospital leaders the negative impact of various liability-side risks. These risks for the liability-side include market and liquidity risks as applied to investments, such as equities (stocks), bonds, securities, and property, plant, and equipment. What are several types of financial risk that the health care organization could take in the course of operations?
Answer:
Financial risk can be broadly defined as the possibility that the organization will not be able to generate enough revenue to cover its costs.
There are several types of financial risk that a health care organization could take in the course of operations. For example, it might choose to invest in equities (stocks), bonds, securities and/or property, plant and equipment. These investments can fluctuate wildly in value and could lead to losses for the organization if its investments do not perform well.
Another type of financial risk is credit risk, which refers to the possibility that a borrower may not repay their loan according to its terms. An example of this would be if someone took out an auto loan but then lost their job shortly after receiving the money so they couldn’t afford to make monthly payments on time anymore – this would be considered credit default risk because there’s a chance you won’t receive full payment for your loan if something unexpected happens like losing your job unexpectedly before being able to find another one quickly enough after losing yours unexpectedly due to unforeseen circumstances beyond your control such as illness or injury requiring long-term treatment at home away from work until healed
Question:
HCA 610 Module 5 DQ 1
Recent turmoil in the capital markets underscored for hospital leaders the negative impact of various liability-side risks. These risks for the liability-side include market and liquidity risks as applied to investments, such as equities (stocks), bonds, securities, and property, plant, and equipment. What are several types of financial risk that the health care organization could take in the course of operations?
