Final answer:
Risk management is the establishment and maintenance of policies and procedures to protect medical offices from lawsuits, involving assessments of treatment costs, patient quality of life, and privacy risks.
Step-by-step explanation:
The process of establishing and maintaining policies and procedures to protect the medical office and staff from lawsuits is called Risk management. This concept is vitally important in the healthcare field as it requires careful consideration of procedural protocols and the equipment used in the care of patients. Decisions in risk management often involve weighing the costs of treatments, assessing the quality of life outcomes for patients, and understanding the risks associated with breaches in individual privacy due to health records management. A key part of risk management is determining who is liable when negative outcomes occur, whether due to flawed protocols or defective equipment, and how such risks can be mitigated to prevent legal action.