Abstract— The concept of risk management in hospital had
its beginning in the 1970s in the USA, following court decisions
which established the corporate liability of the hospital for the
quality of care and holding medical staff liable for quality of
care. The formal program of risk management is a necessity in
all health care facilities in the USA and a prerequisite for
accreditation of hospitals. Progressive hospitals in developing
countries with western trained physicians are initiating the
process of risk management as a safeguard against becoming
defendants in major medico-legal lawsuits by making risk
management an integral component of hospital management.