Analysis of Risk Management Cycle on Capitation Mechanism at First Level Healthcare Facilities in East Java

Abstract

The implementation of risk management is an essential function in an organization to control risk. Based
on the preliminary research that has been carried out, only 4.2% of FLHF in East Java implemented the
complete risk management process, starting from establishing context to evaluating risks. Modifications
of risk management cycle implementation are made by reviewing the opinion of Carroll (2001) and ISO
31000:2009. This research aims to analyze the influence between the stages of implementing modified risk
management based at 95 FLHF in East Java. The results show that each stage of the capitation mechanism
risk management has a strong significant influence on each other. The results provide recommendation that
FLHF should improve the understanding and awareness of the risks and expected to be able to apply risk
management cycle as a whole.