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Risk Manager of the Year: Q&A with Rebecca Cady

Rebecca Cady, vice president and chief risk officer of Children’s National Medical Center (CNMC) in Washington, D.C. was named the RIMS 2018 Risk Manager of the Year today. CNMC is the largest freestanding pediatric academic medical center and health system in the greater D.C. area., with annual revenues of nearly $1.2 billion.

She was praised by her peers for her success in elevating CNMC’s culture of safety, addressing risk on an enterprise basis and lowering the system’s total cost of risk. Under her leadership, programs continually seek to benefit the system’s 6,000-plus employees, and ultimately, the services they provide to children and their families. Cady spoke with Risk Management Monitor about her journey to the profession and the combination of challenges she faces as a health care risk manager.

Risk Management Monitor: Your professional career began as a labor and delivery nurse. How did you make your way into risk management?

Rebecca Cady: I was a staff nurse at a small, rural hospital in Kingsville, Texas. During a shift, several co-workers were gathered at the nurse’s station, discussing a lawsuit that many senior nurses were anxious about having to take part in.

They didn’t understand what was going on. I remember thinking: ‘What if lawyers knew what it was like to be a health care provider or practice medicine and nursing?’ It would help them do a better job of guiding the nurses and doctors through the legal process. I thought, ‘I could go to law school.’ And I did. It turned out to be a great idea because it has made for a fulfilling and interesting career.

RMM: After becoming a lawyer—and eventually partner—at a law firm, what drew you to CNMC?

RC: I saw this as an opportunity to get in the practice of avoiding litigation in the first place. I was attracted to the idea of working more closely with providers and in a hospital environment where I felt I could have a greater impact on the organization and manage its risk.

RMM: What is one of CNMC’s top challenges?

RC: Recruitment is up there. Pediatric neurosurgeons are not working at Starbucks while they’re looking for a job.

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In some of the specialties, there are very few qualified people. Being able to recruit and hire the best and the brightest, which we think our kids deserve, is hard because we’re competing with pediatric hospitals that are part of other systems.

RMM: In 2014, you updated the reporting systems to include reporting from mobile phones. What inspired that change?

RC: Being able to report an incident and have it instantly make its way up the chains of command was more of a way to cut past the tediousness of logging a report on paper, or even on a computer. I’m not a techie but I recognize that technology has the ability to make us more efficient and effective. We really do believe that more reports are better, because knowing about the low-level events that don’t reach patients or cause immediate problems can still be useful. You can then identify latent issues that need correcting and prevent something serious. Plus, it was embraced by our employees.

RMM: You are widely regarded by peers and co-workers as a relationship-builder and a strong communicator. What is your management style?

RC: My office is in the hospital and I make it a point to be visible. I go to meetings wherever possible and am present wherever possible, I administer our calls and speak at staff meetings as well and to the new residents and nurses as they come on board. The whole risk team is also out and about among the organization constantly, because having relationships builds trust and makes your job easier.

We’re not the department of ‘No.’ We’re the department of ‘Yes, If…’ Helping folks solve their problems – even if they seem small to you – is huge for them. And once they stop seeing you as the policeman, they see you as a business partner.

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Then they’ll start to call you earlier in the game when they are strategizing. That applies no matter what industry you’re in.

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RIMS Bestows Top Industry Honors and Awards

SAN ANTONIO—At today’s RIMS 2018 Annual Conference & Exhibition Awards Luncheon, the risk management society kicked off the week by issuing its top marks of distinction for leadership and achievement in the industry.

Ward Ching, managing director of the western region at Aon Global Risk Consulting, received RIMS’ most prestigious honor, the Harry and Dorothy Goodell Award. Named after RIMS’ first president, the award recognizes outstanding service and achievement in furthering the goals of the society and the discipline of risk management. “This year’s winner is an outside of the box thinker, customer focused, and always willing to put others before himself,” said RIMS President Robert Cartwright, Jr. “He created a brand new culture of safety for Safeway, has saved companies billions of dollars and is creating risk management programs for universities across the country.”

This year’s inductee to the Risk Management Hall of Fame is Berry Griffin, former RIMS president from 1979.

“RIMS stands as the premier risk management association in the world and has grown its network to over 10,000 professionals because of individuals like Berry Griffin, Jr.,” said RIMS CEO Mary Roth. “Dedicated, passionate and genuinely invested in demonstrating the value of risk management, Berry’s contributions continue to drive conversation and evolve risk practices. It is an honor to induct this longstanding RIMS leader into the Risk Management Hall of Fame.”

Celebrating the impact of an involved membership both past and future, the RIMS Rising Star Awards went to Lindsey Harris, risk manager at Dollar Tree Stores, and Jaci Mennenga, manager of corporate risk management at COUNTRY Financial. Harris and Mennenga were honored for demonstrating exceptional initiative, volunteerism, professional development, achievement and leadership potential.

Among those recognized for exceptionalism on a chapter level, Randy Jouben, risk manager at Fairfax County Government and active member of RIMS Potomac Chapter, received the Ron Judd “Heart of RIMS” Award. The first ever RIMS EChO Award for enhancing chapter outcomes went to the Oregon Chapter. For their continued service with RIMS and exceptional support of the society’s strategic initiatives, Andrew Bent, risk manager at the Sage Group PLC, and Lori Seidenberg, head of global real assets insurance at BlackRock, Inc., were named to the RIMS Ambassadors Group.

Tomorrow morning, the society will continue to recognize some of the risk management industry’s top talent at the RIMS Risk Manager of the Year Award Breakfast. RIMS Risk Manager of the Year and Risk Management Honor Roll aim to raise the profile of the risk management profession and the outstanding programs practitioners have implemented within their organizations. This year’s Risk Manager of the Year is Rebecca F. Cady, vice president and chief risk officer at the Children’s National Medical Center. Additionally, three risk professionals will will be named to the RIMS Risk Management Honor Roll: Sandy Aspinall, Jr., vice president of global risk management for Comcast Corporation; Jennifer Hills, director of the office of risk management services for King County (Washington); and Joseph Meaney, Jr., vice president of global insurance and risk engineering for The AES Corporation.

Risk Management of Technology Risks Lagging, Survey Finds

SAN ANTONIO—Technology is becoming more and more necessary for the growth of companies, enhancing their abilities to get products to their destination faster and automate core processes. In fact, it’s predicted that revenues from AI-related technologies will reach $127 billion by 2025.Technology has also led to safer work conditions for employees with the use of wearable technology and drones.

According to the 15th Annual Excellence in Risk Management report by Marsh and RIMS, which examines risk professionals’ knowledge of and role in managing technology innovation such as artificial intelligence (AI), blockchain, and the Internet of Things (IoT), 59% of respondents said their organizations are currently using or exploring the use of IoT systems; 47% are using or exploring the use of AI; and 24% are using or exploring the use of blockchain.

Despite this growth, however, only 14% said they strongly believe they have a clear process in place for addressing disruptive technology risks. Almost half could not say if there was a clear process.

The report found that most risk professionals would benefit from balancing their view of digital technology. When asked what it means for their organization to be “digital,” a majority cited operational improvements, such as automating core processes, over growth initiatives such as new ways of doing business and interacting with customers.

By ignoring how digitization is changing the way companies interact with their customers, risk professionals cannot fully understand the changing risk profiles of their organizations, the report notes.

“Emerging technologies like artificial intelligence and blockchain are fast becoming the new normal, yet risk management is not keeping up,” observed Brian Elowe, U.S. client executive leader at Marsh. “Only by asking questions and understanding the underlying technologies and their uses throughout the organization can risk professionals truly appreciate their organizations’ risks and respond accordingly.”

Fear and lack of understanding about these new technologies could be the basis of this lag. As the report indicates, however, it is not necessary for risk professionals to understand the detailed intricacies of every new technology. Instead, they should be able to discuss them with technologists.

“Risk management professionals can add tremendous value and insight, supporting organizations’ ability to make strategic decisions regarding disruptive technology,” said Carol Fox, RIMS vice president of strategic initiatives. “Engaging in innovation that impacts our companies, customers, industries, and even the practice of risk management itself is a giant first step. While risk professionals do not need to be ‘experts’ in the intricacies of these technologies, they can certainly advance the performance benefits that each new technology brings.”

The good news for many risk professionals – and their organizations – is that managing emerging risks and working across the organization are not new challenges. In recent years, risk professionals have had a number of risks to contend with, including terrorism, climate change and cyberattacks. “Risk management executives are well placed to be part of the leadership team around technology adoption; their position naturally connects them to others across their organizations,” according to the report.

Highlights from the report:

  • The majority of respondents said they are most interested in technology that enables them to identify emerging risks (57%) and enhance data security (57%).
  • Of the respondents whose organizations have cross-functional risk committees, 31% said disruptive technologies are discussed at every meeting.
  • 40% of respondents said they would consider switching insurers and other advisors based on their ability to provide innovations in the claims area.

200 New ‘Nightmarish’ Reasons to Wash Your Hands

New nationwide testing in 2017 uncovered 221 instances of unusual resistance genes in what is known as “nightmare bacteria,” according to the Center for Disease Control and Prevention’s (CDC) monthly Vital Signs report, released last week. Germs with unusual antibiotic resistance (AR) include those that cannot be killed by all or most antibiotics, are uncommon in a geographic area or the U.

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S., or have specific genes that allow them to spread their resistance to other germs.

Examples of AR germs include: Vancomycin-resistant Staphylococcus aureus (VRSA), Candida auris, and certain types of nightmare bacteria such as carbapenem-resistant Enterobacteriaceae (CRE).

“CDC’s study found several dangerous pathogens, hiding in plain sight, that can cause infections that are difficult or impossible to treat,” said CDC Principal Deputy Director Anne Schuchat, M.D.

With spring break in full effect and peak travel season on the horizon, the timing of this new information should be noted by businesses and the public, since AR has been found in every state and can spread between facilities and even people without symptoms of infection.

The CDC warned that germs “will continuously find ways to resist new and existing antibiotics” and that it is currently impossible to stop new resistances from developing. Recent nationwide infrastructure investments in laboratories, infection control, and response are enabling aggressive investigations to keep resistance from spreading in health care settings.

According to the CDC, a hard-to-treat germ that spreads easily was found in 11% of screening tests among subjects who displayed no symptoms. The nightmare germs sicken 2 million Americans and kill 23,000 every year. Additional study findings showed that:

  • One-in-four germ samples sent to the AR Lab Network for testing had special genes that allow them to spread their resistance to other germs.
  • Further investigation in facilities with unusual resistance revealed that about one in 10 screening tests, from patients without symptoms, identified a hard-to-treat germ that spreads easily.
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    This means the germ could have spread undetected in that health care facility.

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  • For CRE alone, estimates show that the containment strategy would prevent as many as 1,600 new infections in three years in a single state—a 76% reduction.

The CDC’s rapid response Containment Strategy is launched at the first sign of unusual resistance. Recent cases were found and isolated in Tennessee, after a patient received health care outside the U.S.; and in Iowa, when a nursing home patient was diagnosed with an AR germ that spread to five other people. Follow-up assessments revealed the outbreak had been contained.

To mitigate the risk of contracting these germs, employees should:

  • Inform your healthcare provider if you recently received health care in another country or facility.
  • Talk to your healthcare provider about preventing infections, taking good care of chronic conditions and getting recommended vaccines.

CDC recommends practicing good hygiene, such as keeping hands clean with hand washing or alcohol-based hand rubs, and keeping cuts clean until healed.