The AS/NZS ISO 31000:2009 (ISO 73:2009) define Risk Management (RM) as “coordinated activities to direct and control an organisation with regard to risk”.
Put simply, risk management is the process by which a club manages the real and perceived risks it faces in the running of the club.
The Australian/New Zealand Standard for Risk Management (AS/NZS ISO 31000:2009) defines risk as “the effect of uncertainty on objectives”. Basically, this means all objectives of any club are subject to uncertainty.
Australian sport and recreation organisations face an increasing risk of litigation, and many organisations are recognising the need to provide protection for their volunteers, members and participants.
The Western Australian Government has recognised this and passed legislation to limit the exposure to liability (in certain circumstances) for volunteers within the sports club system. The Volunteers and Food and Other Donors (Protection
from Liability) Act 2002, the Civil Liability Act 2002 and the Civil Liability Amendment Act 2003 provide this protection.
Identifying potential risk and creating a risk management policy for your club, group or event can have a number of subsequent benefits. These can include:
Clubs need to consciously deal with risks by both transferring the financial risks to a third party through insurance, and adopting strategies and behaviours that reduce risks.
Clubs need to accept that there is risk in sport and therefore must develop a simple Risk Management Plan with involvement from their most significant stakeholders – their members.
Members may also have skills and knowledge on risk management from their workplace and other clubs involvement, and may be able to assist in the development of this plan.
Risk management is an ongoing process applied to all aspects of the clubs operations. Any new project, event or competition should have a risk assessment completed. Risk management is a five-step process.
Potential risks can be identified through various methods such as:
To assess the likelihood of potential risks:
How to treat and control potential risks:
The risk management template and risk management action plan may help you to develop a risk management action plan for your club.
Potential risks can be dealt with by the club regularly and consistently:
The risks associated with a specific project, event or competition including all phases of the event such as safety, public liability, property loss/damage and competition/competitor services.In establishing the context of the risk
Strategy = Avoidance and Management
e.g. Hang gliding—avoid program or provide qualified staff, close supervision and safe, regular inspected equipment and facilities.
Strategy = Management
e.g. Injury occurring within the rules of the game. First Aid training provided for volunteers, coaches and officials.
e.g. Rock climbing —provide qualified staff, close supervision and safe, regular inspected equipment and facilities.
Strategy = Acceptance
e.g. Fluctuating club membership numbers
Strategy = Insurance
e.g. Unable to fill executive positions in the club. Provide mentoring opportunities.
Describe the activity/function/strategy.
E.g. Financial management processes for the club.
What can happen? How it can happen?
E.g. Inadequate financial management processes and the club becomes insolvent.
What controls will be used in this activity?
E.g. Monthly financial statements provided.
What is the likelihood of this event occurring?
To rate, see Table D1.
What would be the consequences if the event occurred? To rate, see Table D2.
E.g. High financial loss.
What is the level of risk? To rate, see Table D3. E.g. significant risk.
Senior management action needed.
Tasks to reduce your club’s risk
Set some dates
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