Risk management is an essential discussion in every industry and so therefore, every management should strive to design techniques that will prevent the institution from losses that arise from risk. In most healthcare organizations, the top management is responsible for developing and implementing risk management techniques for the purpose of preventing and mitigating financial losses. However, risk management in financial institutions is not similar to risk management techniques developed by other organizations. This is because risk management in healthcare must go along with the concept of patient safety (Barr & Dowding 2012). Patient safety then brings in the aspect of developing a plan to secure risk management not in short term but long term operations thus the idea of long term financing.

All the above can be done from developing a business plan that sets out long term and short goals of the institution. A primary benefit of having a business plan is that a well written plan ensures a business stays on track while engaging in its operations (Niemand 2013).  A business plan states out the mission, vision, objectives and long term procedures of a business thus making it is easy for the management to stay on track. A business whether profit or nonprofit needs investors. A business plan makes it easy to provide investors with the information they need to know about the business before investing in it. A well written plan for business makes it easy for the top management of every health institution and its investors to help in ensuring that the plan is successful.

A perfect example of a health institution business plan would be one that aims at introducing a new service unit. In other areas, the PET scan machine is not available and we feel the need to bring new services on that line. This service is not particular in conducting body scanning but to also provide consultation, education and testing services after treatment. Healthcare leaders can make use of this information as a major prediction of the performance and financial needs of the future through designing a business plan.