A method for managing alarm events in a physiological monitoring system is described. The method includes validating the accuracy of alarm events by checking if the alarm events are noise events. The method further includes identifying a pattern in alarm sequence or an alarm rate of at least one alarm type associated with the alarm events. The alarm rate is the frequency of the occurrence of alarm events for the particular alarm type. Based on the identified pattern in the alarm sequence and the alarm rate and patient data, an alarm level associated with the alarm type is adjusted. The hospital staff is notified depending on the criticality of the adjusted alarm level. Further, the alarm signals are suppressed when either a patient intervention or a pause signal is detected by the physiological monitoring system.