New ventures require accurate risk analyses and adjustments.
For new business ventures to succeed, healthcare executives need to conduct robust risk analyses and develop new approaches to balance risk and return. Risk analysis involves examination of objective risks and harder-to-quantify subjective risks. Mathematical principles applied to investment portfolios also can be applied to a portfolio of departments or strategic business units within an organization. The ideal business investment would have a high expected return and a low standard deviation. Nonetheless, both conservative and speculative strategies should be considered in determining an organization's optimal service line and helping the organization manage risk.
Eastaugh
S R
SR
George Washington University, Washington, D.C., USA.
D003659:Decision Making, Organizational; D006754:Hospital Restructuring / Q000191:economics*; D007182:Income; D007449:Investments; D011357:Product Line Management / Q000191:economics*; D020379:Risk Adjustment; D018570:Risk Assessment; D014481:United States