Risk Management for Sport & Recreation

A risk management

framework for the

sport and recreation

industry

OFFICE SPORT & RECREATION TASMANIA April 1999

Office ofSport and Recreation

Tasmania

A risk management

framework for the

sport and recreation

industry

R I S K M A N A G E M E N TF R A M E W O R K F O R S P O R T A N D R E C R E A T I O N

O F F I C E O F S P O R T & R E C R E A T I O N T A S M A N I A

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AcknowledgementsProject coordinated by Nic Deka, Office of Sportand Recreation, Tasmania

Edited by Chris Viney, Pavlovs Dog

Layout and Printing by Digital Ink

FeedbackAny comments or enquiries are welcome and should be directed to:

The Office of Sport & Recreation

PO Box 957

Hobart 7001

Phone: 03 6230 8312

Fax: 03 6230 8333

Email: [email protected]

Beware!This resource is intended as a guide to assist people in the sport and recreation industry withrisk management issues. It is a resource that requires interpretation in parts for rational andintelligent application.

It does not purport to provide legal advice on the contrary it is suggested that matters requiringlegal interpretation be referred to a solicitor.

Although care has been taken in the preparation of the information and appropriate professionaladvice sought where necessary, the Office of Sport & Recreation and its staff accept no responsibilityfor errors, inaccuracies, or omissions that may be identified.

Office of Sport & Recreation 1999The contents of this resource are copyright. Except as permitted under the Copyright Act, no part

may be reproduced by any process, or stored in any electronic form whatsoever without the specificwritten permission of the Office of Sport & Recreation. Please note that some specific sections are

also copyright to other sources which have been duly acknowledged.



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CONTENTS

1 Introduction

2 The risk management process

3 Implementing risk management

4 Risk and safety audits

5 Sport, recreation and the law

6 Legislation and industry standards

7 Insurance

8 Resources and information

9 Case studies

10 Useful info

11 Glossary

12 References



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INTRODUCTION

OverviewOver the last two decades, sport and recreation have changed. What we do in our spare time isnow recognised as a major industry sector business, sport and recreation are inextricably linked.There has been a shift away from traditional sport with the emergence of many non-traditionalsports and recreations. There are now many more opportunities for business and employment,as well as participation in sport and recreation.

A companion of opportunity is usually risk. Changes in our society and in sport and recreationhave provided opportunity, and also an increased exposure to risk which must be understoodand managed.

Risk will always be part of our existence and is certainly an integral part of sport and recreation.As individuals and as a society we continually manage risk sometimes consciously, often withoutrealising it, but rarely systematically. Once, the management of risk was driven by self preservationand a moral duty of care for others. Now this has been overshadowed by more powerful legal andeconomic imperatives.

The systematic management of risk is now refined as a modern management tool to cope with anincreasingly litigious environment. As the line between business and pleasure becomes increasinglyblurred; as sport moves into the business arena; and as business thinking is now generally applied tosport and recreation operations, the sport and recreation industry must look closely at its riskmanagement practices.

Risk management is a prominent issue and has been the subject of many forums, papers, and reports.The message from all is clear. Manage your risks!

What perhaps has not been so clear is how this should be done.

This framework aims to achieve the following:

Provide a simple and unbiased explanation of risk management rationale and process

Counter the intimidation that many feel about risk management

Inspire confidence in tackling risk management issues

A good deal of risk management is common sense. The complexity for sport and recreation liesin the astounding diversity of situations, organisations, and activities to which it may be applied,and the human factors associated with interpretation and implementation.

Implicit in the preparation of this framework is an understanding of the limitations in termsof expertise and resources that many sport and recreation organisations might face in tacklingrisk management.

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What is risk?What one person regards as a risk, another may not. To this extent at least risk is defined byindividual perception. The Australian Standard (AS/NZS 4630 - 1995) defines risk as:

the chance of something happening which will impact upon objectives*. It is measured in terms ofconsequence and likelihood.

In other words:

What untoward things can happen?

What is the likelihood of them happening?

What will be the consequences if they do happen?

* Essential to understanding the AS/NZ 4630 definition is understanding what it is we mean by objectives. This is perhaps

best explained as freedom from loss, harm, or liabilities.

What risks do sport and recreation organisations face?Sport and recreation organisations can be exposed to a wide range of risks. All too often thoughwe only think of and respond to the more obvious risks, such as those that may cause injury toparticipants. These obvious risks may well account for most of an organisations risk exposure,but this does not mean that some of the less obvious risks cannot be just as costly.

Increasingly organisations must consider a more complex range of risks such as those arising fromlegal and commercial relationships, adverse natural events, those that may result in financial losses,and even those that may cause loss of reputation or bad publicity.

The risks an organisation is exposed to will depend upon many factors, but generally the largerthe organisation, and the more activities it is involved in, the more risks it will face.

Most sport and recreation organisations already manage risks. Some well, others not so well.The challenge we face in a rapidly changing world is to ensure our risk management is effective,and keeps pace with change.

What is meant by risk management?It may not be possible to have a risk free environment, but it is possible to manage risk. In otherwords avoid, reduce, or transfer it.

To the extent of the obvious at least, as individuals we manage risk all the time, sometimesconsciously, often intuitively. (For example, parents may recognise the hazards and the subsequentrisk of injury to young children at home. They place latches on doors, barricade doorways, putmedicines out of reach, and attend first aid classes.) We may not deliberately apply a risk

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management process but none the less we have applied a process of identifying, evaluating, andcontrolling. This process relies on our experience, skills, knowledge, and judgement, and our ability toapply these qualities to problem solving and decision making.

As individuals and private citizens we can afford to accept the vagaries of intuitive risk management.Organisations and those with a legal responsibility for others cannot.

Risk management for the latter requires a systematic and rational approach. It requires:

Forward thinking Anticipating risks and preparing for them

Lateral thinking: Searching for new and better solutions

Responsible thinking Risk management rather than risky management

Balanced thinking Recognising the economic realities of risk reduction, and striking areasonable balance between costs and benefits.

What are some benefits of good risk management?

Organisations applying sensible risk management can expect many benefits. Some may be:

Reduced likelihood of undesirable and costly surprises Improved quality of the experience the organisation offers Better strategic outcomes Improved prospects for viability of the organisation Better protection of assets managed by an organisation Possible reductions in insurance premiums A more confident and willing base of administrators, officials and volunteers

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The concept of risk

A rational approach to risk management is only possible if we first understand some of the humanfactors involved, and the philosophy, ethics, and perceptions that underpin risk in our society.

Risk is ubiquitous perfect safety is unattainable. We live in an environment of ambient risk and donot consciously perceive risk until it reaches a level that prompts our concern.

Depending on our cultural perspective, knowledge, skills, and experience, we perceive and define riskdifferently.

The accepted definition of mathematical uncertainty may be incomprehensible to many, buteveryone is able to identify obvious risks in a commonsense way. For example, when a batsman ducksto avoid a bouncer, he does not think about mathematical probabilities and variation from the norm,he thinks Ill get hurt if Im hit.

We manage risks continuously sometimes consciously, but oftenintuitively, as in the example above.The limitation of intuitive riskmanagement is that we tend not toconsider the less obvious. What wenow call risk management is anendeavour to apply a systematic andrational approach to controlling risk.

We perhaps only consider the lessobvious when we have something togain. Most people entering a lotterythink they have a chance of winning afortune, yet would consider theirchance of a substantially moreprobable accident as too remote tocontemplate.

When we have something to lose, our perception, and the level of risk we accept also changesdepending on exactly what we might lose. Our life? $5? $50000? A finger? Time? Friends?Reputation?

Our willingness to accept risk also varies depending on whether exposure to the risk is voluntary orimposed. Generally people will accept higher levels of risk if they are exposed through choice. Riskmay also be personal or societal. We will often tolerate events affecting just one person more readilythan those that could affect many.

Even more complexity is introduced to how we perceive risk and the level that we accept by the factthat we are inconsistent in our decisions. For example, we accept the risk of driving a car but mayrefuse to play basketball in a sports stadium with an asbestos roof.

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With risk comes opportunity, benefits, and reward. We must accept a certain level of risk to gain theenjoyment or satisfaction derived from participation or winning. A balance must be struck. The levelof risk accepted is determined by the individual and influenced by their tendency toward foolishnessor prudence.

In many outdoor recreation pursuits there are great rewards attached to risk exposure. A balancehowever is struck between real and perceived risk. Those with little knowledge of rock climbingimmediately perceive it as a dangerous activity. In fact, through the appropriate application of theirskill and awareness, experienced rock climbers can reduce the real risk to make the activity muchsafer than playing contact sports. Awareness is often our most valuable defence against risk;distraction our greatest enemy.

Risk and safety are sides of the same coin. Risk reduction increased safety costs money. Anotherbalance must be struck. It is obviously foolish to spend vast sums of money on a negligible reductionin risk, or to strive for unrealistic levels of risk.

We must also understand the great diversity of risk. Some are frequent, some foreseeable, others rare,or unforeseeable. In this respect history is our greatest teacher. Those with a good knowledge of pastevents will usually be better prepared to manage risk.

In the end, we must appreciate that there is no easy solution to determining acceptable risk.Inevitably, decisions will have to be made based on the best information and knowledge available at aparticular point in time.

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THE RISK MANAGEMENTPROCESS

Process summaryThe generic risk management process is neither innovative nor complicated. Rather it is a logicalprocess that can be applied to any activity, asset, project, or program.The process, described in figure 2, involves the following sequence of steps:

Define the scope of applicationDecide what you are applying the process to, and what outcomes you expect.

Establish and understand the contextThe risks to which an organisation is exposed, and how they are evaluated and treated, must beviewed in context with the organisations social, legal, and economic environments, its aims andcapabilities, and the risk profile of the activity for which the organisation exists. Importantly, thisstep provides a rationale for the evaluation of risks in terms of what may, or may not, be acceptableto the organisation.

Identify the risksA thorough approach to the identification of risks involves three steps:

Identify the sources of risk Identify what could be affected Define the risk

It is also important to consider the factors that may increase or decrease likelihood and consequencesof the event.

Evaluate the risksThe first step of evaluation is analysis. This is based on likelihood and consequences.

How often is an event likely to happen? What will the severity of the consequences be?

The answers to these questions will indicate the level of risk that exists.The second step is to assess this against the established context to determine:

Is the risk acceptable or unacceptable?Obviously unacceptable risks should be treated. Evaluation should also reveal a priority formanagement and indicate the need for specialist advice.

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Treat the risksRisk treatment options may include avoiding, reducing, transferring, financing or simply acceptingthe risk. Once the best option has been selected, a normal planning process should be adopted toguide implementation.

ImplementationTransferring theory into action tends not to happen automatically. On-going commitment from thosedelegated risk management responsibilities will be necessary.

Monitor and reviewSport and recreation organisations exist in a dynamic environment. Monitoring and periodic revieware essential to an effective risk management program. To this end it is important to document allstages of the risk management process.

Establishcontext

Identifyrisks

Evaluaterisks

Treatrisks

Accept Avoid Reduce Transfer Finance

Considerconsequences

Considerlikelihood

Determine what is atrisk and effect

Determine sourcesof risk

What is the processbeing applied to?

M O N IT O R A N D R E V I E W

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Establishing and understanding the context

Risk is relative before we can sensibly deal with risk, we must first understand the context in whichit exists. This is particularly critical to our rational evaluation of risk in terms of what may, or may notbe acceptable. Rather than assume an understanding of the context in which risk exists, it is oftenwise to deliberately establish the context so that the parameters for dealing with risk are clear.

Context may be established by considering:

The external influences on the organisation The organisation and its operations The risk profile of the activity for which the

organisation exists

External influences

External influences are those that prevail in the widerenvironment, and are generally beyond an organisationscontrol. These influences are broadly based on communityattitudes, tolerance, and demands which are constantlyshifting. The trends in our society, particularly in legal andeconomic terms, create the big picture context in whichrisk should be viewed. Some of the trends to consider inestablishing this context are:

There is a greater public awareness of legal rights which hasincreased the exposure of sport and recreation organisationsto litigation.

There is a greater tendency for people to accept less responsibility for their own actions and toseek to blame others for their misfortune.

Despite efforts to the contrary, the law is increasingly being applied to sport. Competitorshitting out in the heat of the moment are now as likely to find themselves in court answeringassault charges as in front of their sports tribunal. The law is also being called upon to arbitratein disputes between competitors and sport administrators, clubs and tribunals.

The diminishing halo effect pertaining to non-profit organisations. Such community serviceorganisations once had some immunity from adverse actions in the past, but it would be mostunwise for any group to rely on this effect for protection now.

A tightening economy has resulted in a wider application of the user pays principle. With thishas come increased expectations of the level of service provided.

A commercial focus on the management of sport and recreation facilities has seen an increasein charges as owners/managers seek to break even or make a profit.

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There is morecompetition forsponsorship, and businesshas greater expectationson the returns.

The emergence of sportand recreation as asignificant business sector,and the wider applicationof business principles tothe management of sport,has increased thecomplexity of the task for sport and recreation administrators.

The increasing complexity of todays world means that sport and recreation volunteers requirea higher level of expertise and training, and are harder to recruit and keep.

Advances in information technology and communication systems has improved access toinformation but created an information overload environment.

With more opportunities to participate in a wider range of activities, organisations are beingintroduced to the realities of a competitive market place.

There is an increasing number of casual participants who want the opportunity to participate,but do not wish to make any long term commitment to the sport.

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The organisation and its operations

Understanding the organisation, its structure, membership, goals, activities and method of operation isalso important in establishing the context in which we should view risk. Consider the followingquestions:

What statutory requirements must the organisation meet?It is perhaps more sensible to first define the activities the organisation is involved in, as this willdetermine the statutory framework within which the organisation must operate. This framework mayinclude a range of federal and state laws. Breaches of legislation usually indicate a failure to managerisk appropriately.

What standards exist that apply to the organisations operations?Standards such as national uniform rules, codes of practice, common practice, National Junior SportsPolicy, affiliation requirements, national insurance schemes, and coach accreditation provide abenchmark for determining a reasonable standard of care.

What critical relationships does the organisation have?It is important for organisations to recognise the relationships they may have established with otherparties that are necessary for them to operate. Examples may include councils who provide thefacilities that are used, or an association that creates the competition roster.

What are the goals of the organisation?Consider a soccer club. Its goals will usually be wider than simply playing soccer and may includeproviding entertainment and making a profit. The management of risk must be careful not tocompromise the organisations ability to achieve its goals.

Who is involved with the organisation?The roles and expectations of players, committee members, directors, employees, sponsors, spectators,coaches, families of players, affiliated clubs and associations must all be considered.

What are the capabilities of the organisation?Strategies to treat risk must be kept in context with an organisations ability to provide the necessaryhuman, physical, and financial resources.

What strategies already exist for managing risk?Most organisations will already have policies, rules, procedures and insurance covers which must berecognised and considered in the risk management process.

What is the nature of the organisations activity?There are obviously more hazards associated with some activities than others. Most would agree thatthere are few hazards associated with croquet, and significant hazards associated with bobsledding.An awareness of the hazards associated with an activity, and an appreciation of the level of risk thatmost participants willingly accept, is essential to enable us to rationalise our risk management and notstrive for risk control beyond the expectations of participants.

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Risk identification

Identification requires a mix of knowledge,experience, lateral thinking, and pessimism. Itis necessary to look beyond the familiar and isa matter of considering:

What are the possible sources of risk? What is at risk? What are the effects or consequences?

The fundamental differences between sportsand recreations, and the variance in their size,structure, and operation present a unique set of risks foreach organisation and make it difficult to provide a comprehensivetemplate of risks. However the prompts listed below offer a good starting point for mostorganisations in identifying the risks to which they may be exposed.

What are the possible What is at What will the effectsources of risk? risk? or consequences be?

Relationships People injurycommercial players deathlegal management damagefinancial officials / referees losspolitical spectators

sponsorsHuman Factors public

healthhuman error Assetsnegligence structuresanti-social behaviour groundscriminal activities vehicles

equipmentNatural Events chattels

fire environmentadverse climatic conditions financesvermin / insectsearthquake Intangibles

good willEquipment / Technology reputation

design faultmis-use

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Defining the risk

It is important to clearly define each risk to which the organisation is exposed to support the riskmanagement process. This involves matching the source of risk with what is at risk, and what theeffect might be. For example, the Parks and Recreation Department of a council in identifyingpossible risks may consider:

Possible source of riskRabbits digging holes on a soccer pitch

What is at risk?People (players, referees, council management)Assets (finances)Intangibles (reputation)

What will the effect be?DamageInjuryLoss

Three of the risks defined could be:

There is a risk that players could be injured by tripping in a rabbit hole.

There is a risk that litigation against the council (and subsequent financial loss) could result ifa player is injured.

There is a risk that the councils reputation will suffer if the rabbit problem is not managed.

With the exception of those risks that may be considered fanciful, all risks that are defined should bedocumented in a format that allows evaluation and treatment to be noted. This is not only useful forfuture reference, but can also be used to demonstrate sound risk management if called upon to do so.

Some consideration of the factors that may increase or decrease the likelihood of an event such asthose mentioned above is inevitable in the identification process. It is important to note these pointsfor consideration in the evaluation and treatment of the risk.

Ways to help identify risks

Risk identification can be helped by:

Drawing on expertise from within the organisation Asking the state or national sporting organisation for information Drawing on expertise from outside the organisation such as the Office of Sport and

Recreation, local government, or similar organisations to your own Using relevant checklists and audit processes

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Risk evaluation

Risk evaluation is an analysis to determine the level of risk, and an assessment to decide whether it isacceptable or unacceptable. Analysis is based on likelihood and possible consequences. For eachdefined risk decide:

How frequently will it occur? What will the consequences be?

It is important to answer these questions in the context of the activity, the organisation, any existingcontrols, or other factors which may modify the consequences.

The three methods generally used to determine the level of risk are qualitative, quantitative, andsemi-quantitative.

QualitativeThe easiest and most commonly used is the qualitative method where knowledge, experience, andanecdotal evidence produce intuitive decisions about the probable level of risk. Obviously thismethod has limitations, but it is useful to indicate which risks may be disregarded, those that requirefurther attention, and to attach some order of priority. For many non-profit organisations this will bethe most appropriate method of evaluation.

The following table provides a simple system for qualitative analysis.

Consequences

catastrophic high moderate low negligible

Likelihood

almost certain very high very high high significant moderate

likely very high high significant moderate low

possible high significant moderate low low

rare significant moderate low low low

The priority for action would correspond with the level of risk indicated.Adapted from table D3 AS/NZS 4360:1995

QuantitativeQuantitative analysis applies a numerical value rather than a descriptive word to the level of risk andis dependant upon the availability of accurate data quantifying probability, frequency, and exposure.An example is accident/injury statistics.

Although there have been many academic studies of risk in sport and recreation, the approach hasnot been systematic, and appropriate or relevant information is only available for some activities.

The Australian Sports Commission (Sportsafe) and the Outdoor Recreation Council of Australia aretrying to establish injury databases for their sectors. These initiatives could provide better statistical

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data on accidents and injuries for many activitieswhich may allow a quantitative approach to betaken for the analysis of accident/injury risks.

Semi-QuantitativeThis method endeavours to combinethe qualitative and quantitativeapproaches by replacing descriptivewords with numbers. It can potentiallyprovide a more accurate indication ofpriorities than the qualitative method.

Is the risk acceptable or unacceptable?Whether the level of risk is acceptable to the organisation canonly be answered after careful consideration of the context.

This decision will probably be qualitative. The quality of thedecision will depend on the knowledge, skill, and experience ofthe decision makers. Obviously, if a risk is evaluated to beunacceptable, then appropriate action will be necessary.

In evaluating risks, we must guard against bias and inconsistency. To counter this basic criteria canbe established. A simple way to approach this is to define what is unacceptable in terms ofconsequences or frequency. For example:

The following consequences are unacceptable.

Injuries requiring hospitalisation. Financial loss exceeding $1000 for one occurrence. Significant drop in participation. (define significant) Legal proceedings against the organisation.

In terms of likelihood the following are unacceptable.

Frequent minor injuries. (define frequent and minor) Events which frequently interrupt the organisations activities. (define frequent) Frequent small financial losses. (define frequent and small)

It is likely that many sport and recreation organisations would find quantitative and semi-quantitativeanalysis difficult because of access to/availability of numerical data, availability of expertise tointerpret data, and the time that such analysis demands.

In the absence of quantitative data, for most non-profit organisations qualitative analysis andevaluation will be sufficient to indicate those risks that will require treatment, management prioritiesand the necessity to seek specialist advice.

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Risk treatment

The options for treatment of unacceptable risks must be considered in context. Treatment should beappropriate to the significance of the risk, and the cost of treatment commensurate with thepotential benefits. Essentially there are five treatment options:

Avoid the risk Reduce the risk Transfer the risk Finance the risk Retain the risk

One or more options may be used to treat the same risk. The list above provides a rough hierarchywith those options listed first being preferred. The flow chart below illustrates a process by whichoptions can be considered.

Risk is identifiedand evaluated

Can the riskbe avoided?

Is the riskacceptable?

Can the riskbe reduced?

Transfer therisk

Norisk

Riskavoidance

Accept therisk

Finance therisk

Riskreduction

NO

YES

YES

NO

NO

NO

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YES

YES NO

NO

Is therea risk?



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Avoid the riskThe organisation may avoid the risk completely by consciously not entering into the activity,program, or project. For example, a sports centre may decide not to provide trampolines. Obviouslythis may not be a satisfactory solution for a gymnastics club that regards the trampoline as anessential piece of equipment.

Reduce the riskIt may be possible for a control, or range of controls, to be introduced to reduce the risk to anacceptable level. Such controls will often already be accepted as good or common practice byprogressive organisations. It is sensibly recommended that engineering solutions to modify equipmentor the environment should be considered before those that involve modifying human behaviour suchas administrative solutions and the use of personal protective equipment.

Continuing with the trampoline example above, a gymnastics club may use the hierarchy to reducethe risk of falls from a trampoline by:

1. Sinking the trampoline into the floor so surfaces are level (engineering)2. Adopting a rule that all trampoline work is supervised (administrative)3. Providing a suitable first aid kit (administrative)4. Preparing an emergency plan for injuries (administrative)5. Installing a safety harness system (personal protective equipment)

Such controls may not prevent an event from occurring but they can reduce the consequences orprevent them from escalating. In particular controls such as 3 and 4 that focus on the organisationspreparedness for an event, and its ability to respond and recover, should not be under estimated aseffective control measures.

Care must be taken to ensure that all controls, but particularly those that rely on behaviourmodification, are effectively communicated to all those who could be affected.

The expertise and quality of committee members, directors, coaches, and officials is also a criticalfactor in the success of risk reduction solutions.

Transfer the riskThe mechanism for the transfer of risk is generally a document with some legal standing.Predominantly this will be an insurance contract, but other forms include leases, the contracting ofcertain expertise, disclaimers for participants, and warning signs.

Insurance is normally an important part of any risk management program but is not a substitute forother more appropriate treatments which provide for safety. It should be regarded as the last optionfor risk management.

When insurance contracts are entered into, care must be taken to ensure that the insurance isappropriate for the organisation and its activities and provides suitable cover for all areas of concern.

Many organisations do not have a good understanding of insurance. If this is the case, the expertise ofa good quality broker is recommended to assist the organisation define its insurance needs andnegotiate appropriate covers.

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Insurance companies are now looking far more critically at the risks they insure, and refusing coversor setting extraordinary premiums for those considered to be poor risks. The good news is that thosethat have effective risk management in place are now more likely to be rewarded with lowerpremiums.

Disclaimers or similar forms are now common in those sports and recreational activities that may beconsidered to have a moderate or high risk. The purpose of such forms is to waive or limit liability fornegligence of the provider, coach, instructor etc. In effect, such forms principally serve as a formalrecognition of the risks attached to the activity by the participant, and in this way may reduceliability. Current legal advice suggests it would be foolish to rely on such forms alone for the defenceof a damages claim.

Finance the riskRisk financing is a form of self insurance where the frequency and likely cost of an event areestimated and a financial reserve is built up over a period of time to cover the potential loss. This isgenerally not a viable option for non-profit organisations.

Retain the riskRisk is an important factor in some sport and recreational activities and treatment may compromiseobjectives of the activity. Treatment may therefore be regarded as undesirable and the risk acceptedby the organisation, participants, spectators etc. The risk evaluation may also reveal that thelikelihood of an event is so remote, (meteor strike) or the risk level so low, that the risk can agreeablybe retained.

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IMPLEMENTING RISKMANAGEMENT

Planning

Once the best treatment options have been selected, a planning process should be documented andapplied to guide implementation. This should detail actions, responsibilities, time frames, and theresources required. A risk management plan, like any other, requires cooperation, commitment, andon-going monitoring and evaluation to be successful. An example of such a plan is included as CaseStudy 1 - 9.1

When should risk management be applied?

The simple and idealistic answer is all the time, and to the extent of the obvious, we do manage riskcontinuously. For an organisation though, there are distinct planning and design opportunities whenit is sensible to apply risk management principles such as:

Strategic planning Operational planning Program and activity planning Event planning Facility planning and design Equipment design

Organisations with strategic plans should incorporate risk management in this planning process aspart of each key result area, or maybe as a separate key result area.

Some organisations, even those with strategic plans, may decide an independent approach to riskmanagement planning is warranted to provide a better focus.

How should risk management be applied?

Applying risk management is a logical and deliberate process of identification, evaluation,and treatment of risks in context with the organisation, its activities and operating environment.

It is a versatile management tool which can be applied in varying degrees. It can be appliedcomprehensively to identify and manage all the risks to which an organisation may be exposed,or it can simply be applied to part of an organisations activities such as its finances, or a particularevent, or even a particular risk. The process is also flexible, and once understood can be manipulatedto suit various methods of application.

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A course of action

There is no doubt that a certain level of awareness has been created about risk management.However, many people are unfamiliar with the risk management process, unsure about the extent towhich many aspects of risk management apply, and feel unqualified to decide what should be done.They feel intimidated risk management is quietly tucked aside in the hope that nothing willgo wrong.

This is risky management.

A more positive course of action would be:

Raise risk management at the next executive or club meeting. Ask:Are we aware of the risks our organisation faces?Do we manage these risks effectively?If the answer to either question is no, action is necessary.

Establish a workgroup to address risk management.

Invite a consultant from the Office of Sport and Recreation to discuss risk management andtalk over options the group may have.

Three options may be:

Implement a comprehensive risk management approach which will identify and consider allthe risks to which an organisation may be exposed. Such an approach may be run in house,although an independent facilitator is recommended. Although comprehensive and thorough,this approach can be tedious, time consuming, and demand considerable commitment.

Use an audit approach. An audit process can be used as a diagnostic tool to indicate thestrengths and weaknesses of an organisations risk management, and in so doing indicate thepriority areas for attention. This is an appropriate approach where time and resources arelimited, but the limitations of such an approach must be recognised.

If specific problems have been identified, address those problems. Implementing acomprehensive approach to combat specific problems is like fumigating the entire housebecause of ants in the kitchen.

Regardless of the approach, remember that in dealing with risk management it is unlikely that anyone person will have all the answers. Seek specialist advice, particularly in legal matters and dontforget the resources that exist within your own organisation. The experience, knowledge, skills, andprofessions of members can often offer all the advice and solutions that you need. Make a point ofknowing your people. They are the best resource your organisation has.

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RISK & SAFETY AUDITS

Introduction

Risk is an integral part of all sport and recreation activities. Traditionally, risk management in sporthas focussed on injury prevention, but today, in an increasingly complex environment, it is aboutmore than just preventing injury.

Organisations are now more likely to be held accountable for losses, whether it be injury toparticipants, theft, damage to facilities and equipment, or loss of goodwill, and for their performancein risk management. There are many risks which should be considered by a club or organisation toprovide safe and sustainable sport and recreation experiences.

The increased awareness of risk management in the sport and recreation industry has caused manyorganisations to question their performance, but often they have found little guidance to help movethem beyond this point.

The approach of sport and recreation organisations to risk management is often reactive, and little isdone to anticipate and deal with problems before they can escalate.

Rather than wait for a catastrophe, progressive organisations are now shifting to a culture ofcontinuous improvement and using audits as a tool to evaluate their performance and guide theirdirection in risk management.

What is an audit?

A systematic and critical examination of the key risk and safety areas in an organisation. A diagnostic tool which will disclose an organisations strengths, weaknesses and main areas of

vulnerability to risk.

Three audits have been included to cover the major areas of risk for sport and recreationorganisations. These are:

Safety audit focus on injury prevention Risk audit focus on organisational risks Event audit - focus on organising an event

The basis for each is a checklist of questions which must be adjusted to recognise the diversity oforganisations, their playing environments, equipment, and programs.

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What can an audit tell us?

It provides an assessment of the current state risk/safety management in an organisation. It identifies broad areas of concern for risk and safety. It can show whether the systems in place to manage risks are working. In identifying weaknesses and the main areas of vulnerability to risk it prompts thinking on

remedies and priorities. It brings to attention areas that perhaps have not previously been considered, but are

important to improving risk or safety management.

What are the benefits of an audit?

It provides a positive approach to evaluating performance in risk management. It greatly assists the risk management process by guiding the identification of risks. It is a clear demonstration of an organisations commitment to risk management. It can provide a benchmark for reporting performance in risk management. It can assist an organisation to develop a better understanding of roles and responsibilities in

risk management. It is a clear demonstration that an organisation is reviewing and monitoring its safety systems,

which can be a valuable point if called to account for safety systems in court.

How does the process work?

The best method for implementing an audit process is to use a focus group, guided by anindependent facilitator.

The effectiveness of each audit will rely on the quality and honesty of response to each question. It istherefore important that the focus group is representative of, and has a good level of knowledge andexperience in the organisations activities. It is also important to have a facilitator with a reasonableknowledge of risk management and a good understanding of the audit process. The key steps are:

1. A clear explanation of the audit, and how it fits into the risk management process is providedto the organisation.

2. The questionnaire is adjusted in consultation with the organisation.3. The audit process is conducted with the focus group.4. A report of the process is prepared, and provided to the organisation.

The report will indicate those areas that require attention and may suggest some remedial action.

Remember that the audit has simply identified a risk and the risk management process must becompleted by evaluating and treating the risk.

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RISK AUDIT FOR SPORT &RECREATIONORGANISATIONSAdministration

yes no

Is your organisation properly constituted?

Is the constitution appropriate and relevant to your organisation?

Are all members aware of your constitution?

Are members provided with a copy of your constitution?

Does your constitution cover the following broad areas?

Objectives of your organisation

Powers of the organisation

Membership

Termination of membership

Affiliation

Management committee

Auditor

General meetings

Voting

Finance

Common seal

Alterations to the constitution

Winding up of the organisation

Does your organisation follow the requirements of your constitution?

Is your organisation incorporated?

Do you fulfil the requirements to maintain incorporation?

Are meeting procedures in accordance with the constitution?

Are suitable minutes recorded, distributed and approved?

Is inward correspondence recorded?

Is correspondence dealt with within prescribed time frames?

Is outward correspondence monitored and approved as appropriate?

Are club records maintained to an appropriate standard?

Are club records stored in a secure place?

Is appropriate membership information collected and maintained?

Are procedures in place to ensure security of membership information?

Does your organisation have effective channels of communication established?

Are liaison protocols established for important relationships?

Is the annual report circulated to all members?

Risk Audit for Sport& Recreation Organisations

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Financeyes no

Are all financial transactions accurately recorded?

Is an annual audit conducted of your organisations financial records?

Is the audit conducted by an appropriate person?

Is a financial report provided to each meeting?

Is all expenditure authorised through an identified process?

Are suitable banking arrangements in place for the organisation?

Is all income banked within a prescribed time frame?

Are multiple signatures required for withdrawl?

Are loan conditions met and repayments made on time?

Are the requirements stipulated for any grants being met?

Does your organisation have a financial plan?

Does your organisation prepare budgets where appropriate?

Is professional advice sought on financial matters?

Insuranceyes no

Does the organisation have suitable insurance cover?

Was advice sought from an insurance broker?

Are all members aware of the organisations insurance with respect to:

cover

limitations and exclusions

responsibilities

claim procedures

Is insurance reviewed on an annual basis?

Policyyes no

Does your club have any policies to guide its decision making?

Are policies documented in an appropriate manner?

Are policy documents easily accessible to all members?

Are policies clearly communicated to all members?

Are policies properly implemented?

Are policies supported by appropriate operating instructions?

Are policies monitored and periodically reviewed?

Are there clear policies in respect of: Equal Employment Opportunity

People with Disabilities

Discrimination

Harassment

Drugs

Child Protection

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Planningyes no

Does your organisation have a clear, documented strategic direction?

Are all members aware of and in agreement with the direction?

Does your organisation have a risk management plan?

Are responsibilities clearly defined in all plans?

Are time frames set and met in all plans?

Are adequate resources allocated to implement all plans?

Do you have appropriate emergency response procedures?

Do you have appropriate critical incident management plans?

Do you periodically review your plans?

Personnel Managementyes no

Are position descriptions available for all office bearers?

Do position descriptions clearly detail responsibilities?

Are suitable induction processes in place to ensure a smooth transitionwhen office bearers change?

Has the organisation adopted appropriate Codes of Behaviour?

Are responsibilities shared amongst members of the organisation?

Are the following legislative requirements met for paid employees

Workers Compensation Insurance

Taxation requirements

Superannuation requirements

Award requirements

Workplace Health and Safety

Rehabilitation requirements

Are reporting mechanisms and levels of authority clearly definedfor employees?

Are representative selection procedures clearly documented?

Is there a clear procedure to handle disputes/complaints within the organisation?

Is there a procedure for handling complaints from outside the organisation?

Education, Training, and Accreditationyes no

Are all office bearers suitably skilled or qualified?

Do all coaches have appropriate accreditation?

Do all coaches maintain their accreditation?

Are opportunities for training and education sought?

Are opportunities for training and education promoted?

Are suitable records kept indicating the training and qualifications of members?

Do activity leaders have appropriate experience, training, or accreditation?

Does the organisation have an induction process for new members?

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Contractsyes no

Does your organisation have:

Leases

Sponsorship

Player agreements

Employment contracts

Tickets

Anyone paid a fee for service

Does your organisation fulfil the terms of the above contracts?

Are members aware of the nature of the contracts to which theorganisation is party?

Are all contracts subject to an appropriate review before renewal?

Hazard Identification and Controlyes no

Are appropriate risk / safety inspections made of:

Buildings

Grounds

Equipment

Are the inspections made on a regular or predetermined basis?

Is there a procedure documented for such inspections?

Is there a checklist to assist with inspections?

Are results of inspections recorded and filed?

Are inspections made by suitably qualified or experienced personnel?

Are defects identified by inspections addressed promptly?

Are suitable procedures in place to manage known hazards?

Are appropriate risk assessments made of all programs?

Is risk assessment an integral part of program management?

Are risk assessments documented?

Is there a clear procedure for reporting accidents/injuries?

Legislation & Industry Standardsyes no

Is your organisation involved in:

Fundraising through raffles, gaming machines etc

The operation of a canteen or food stalls

The operation of a bar on a permanent or casual basis

The employment of anyone including coaches, referees, scorers, administrators etc

The operation and maintenance of a clubhouse or facilities

The selling of products, services or merchandise

Sponsorship arrangements between businesses and your organisation

The organising of events in public places

Are you aware of the legislation or local Government By-Laws that could

apply to each of the above?

Does your organisation comply with the requirements?

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Legislation and Industry Standards (continued)yes no

Are you aware of the industry standards that apply to your operations?

Does your organisation comply with their requirements?

Do you ensure the recommended rules of play and protocols are followed

for your activity?

Is professional legal advice sought when necessary?

Do members understand the extent of their Duty of Care?

Event Managementyes no

Is risk management considered when planning an event?

Are all significant risks/hazards identified?

Are reasonable steps taken to reduce risks to acceptable levels?

Are risk management strategies documented?

Is an appropriate standard of care applied to participants?

Are participants notified of the risks, and the level of preparation/skill required?

Is a suitable screening process in place to ensure all participants have thefitness and skill necessary to safely participate?

Are procedures developed to respond to foreseeable emergencies?

Are appropriate permits sought to hold the event?

Is permission obtained from affected land managers?

Are participants required to complete and sign a suitable disclaimer?

Is the feasibility of the event seriously considered?

Is a detailed budget prepared?

Are organisational responsibilities clearly defined and allocated?

Are clear time lines determined for each aspect of organisation?

Is a plan prepared for media relations?

Is appropriate insurance cover purchased for major risks?

Are insurance covers reviewed to ensure they are adequate?

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Safety Audit -Sports Injury Prevention(extracted from Sportsafe Australia)

COMPONENTS OF SPORT SAFETY RESPONSIBILITY

Pre-participation Screening

Are participants screened by a health professional if there are concernsabout health or injury?

Are the athletes followed up after screening to ensure that they are fit to play?

Are coaches aware of pre-existing medical conditions of the participants, suchas asthma, diabetes?

Are coaches aware of medications that athletes require, such as ventolin?

Injury Surveillance

Does your club/facility maintain injury records?

Are these records adequately stored in an easily accessible form?

Are these injury records used in directing prevention activities?

Are these injury records used to produce reports?

Does your club/facility use the injury figures to improve safety practices?

Are injury records reviewed?

Does your club/facility contribute to other data collections?

Is injury data collected with reference to the number of participants andlevel of competition?

Physical Preparation

Flexibility

Are the participants instructed in how to stretch properly/appropriatelyfor their sport?

Is stretching performed in the warm-up and cool-down?

Skills

Is training provided in the skills of the game for participants to participate safely?

Is training provided that is targeted at preventing injury, such as safelanding techniques?

Safety Audit -Sports Injury Prevention

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Maturity and Body Type

Is safety with regard to physical suitability, considered when participants areselected for specific positions?

Are participants/coaches aware of certain problems/issues related to womenand girls in sport such as amenorrhoea, eating disorders?

Are young participants matched for biological age rather than chronological age?

Coaches and Officials

Accreditation

Does your club use accredited coaches?

Does your club use accredited officials?

Do your coaches and officials attend regular education updates?

Do your coaches undergo re-accreditation?

Are there people on hand with current first aid certificates?

Supervision

Are all programs and activities planned and conducted according to recognisedsafety guidelines?

Do supervisors inform participants of safety issues?

Are all activities properly supervised by qualified personnel?

Are supervisors regularly updated regarding new activity hazards and safety measures?

Do supervisors have adequate sports first aid training?

Role Models

Do coaches and officials act as positive role models, eg non-smoking,incorporate codes of behaviour and sports safety principles into personal behaviour?

Modified Sport

Are modified games/activities provided for:

juniors?

seniors?

disabled?

Is equipment modified appropriately for these groups?

Health Guidelines and Policies

Children in Sport

Does your club follow the Children in Sport Guidelines produced by SportsMedicine Australia (SMA) and the Australian Sports Commission (ASC)?

Does your club have consent forms for child participation?

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Pregnancy in Sport

Does your club follow the Pregnant Athlete and the Law Guidelinesproduced by the Women and Sport Unit at the ASC and SMA?

Does your club advise women to seek medical opinion in regards toparticipating while pregnant?

Alcohol Usage

Does your club discourage alcohol consumption before participation?

Does your club/facility provide alcohol free and low alcohol drinkspost-game and at functions?

Hydration

Does your club follow guidelines on fluid replacement?

Does your club follow guidelines for safe conduct of play in regards toheat, cold, humidity etc (SMA)?

Policy and Regulations

Infectious Diseases Policy

Does you follow the infectious diseases policy produced by SMA?

Do your participants use only their personal water bottle?

Do your sports first aid and medical staff follow recommendations forhandling bleeding ie: wearing gloves, removal of injured from play?

Emergency Plan

Is there an emergency plan for serious injury?

Is the plan communicated regularly to coaches and officials?

Is there a telephone accessible for emergency calls?

Is there easy access for a stretcher between the playing areas and the first aid room?

Is the local emergency/ambulance service aware of your game schedule?

Do emergency personnel have clear access to the playing venue?

Are emergency drills regularly conducted?

Risk Management Plans

Does your club/organisation/facility have a comprehensive sport safety plan?

Are all safety policies, procedures, rules and responsibilities outlined in a manual?

Is there an established risk management committee to meet regularly?

Is there regular review and modification of the sport safety plan?

Are sports participants or parents informed of prevention and injurymanagement procedures?

Does an individual or a group have responsibility for enforcing the safety regulations?

Have appropriate checklists been established and reviewed?

Are accurate records maintained of safety procedures undertaken?

Are regular safety updates conducted for all those involved in the sport/facility?

Is there a system for reporting and correcting unsafe conditions or practices?

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Does the sport/facility insurance policy include sufficient negligenceliability coverage for all activities, supervisors and athletes?

Are legally counselled waiver/consent forms required?

Are safety/risk management policies posted for participants to see?

Sport First Aid and Trainers

Sports First Aiders and Trainers

Does your club use qualified/accredited sports first aid personnel?

Do they update their education?

Is a qualified sports first aid person available at training?

Is a qualified sports first aid person available at games?

Are injury records kept?

First Aid

Is there a first aid plan or policy for your club and facilities?

Does your club have a policy for management of concussion/head injuries?

Does your club have a policy for management of open wounds/bleeding?

Does your club have a policy for return to sport after injury?

Is there a designated first aid area or room?

Is it kept clean and hygienic?

Is there a suitable treatment table and light for suturing?

Are surgical gloves provided for trainers and medical staff to manage bleeding wounds?

Is there a designated disposal container for bloodied material and waste products?

Is there a first aid kit or supply cabinet?

Are the first aid supplies kept in a secure place?

Is the kit/cabinet checked regularly and restocked?

Is ice readily available for the first aid room and playing area?

Is a stretcher (Jordan Frame where necessary) available?

Is there a bench in the first aid area or change room at hip height for trainers totape or dress wounds?

Is there a list of emergency telephone numbers?

Are emergency procedures posted?

Injury Referral

Does your organisation have a referral or on-call system to appropriatesports medicine professionals?

doctor?

physiotherapist?

dentist?

Is your local hospital aware of scheduled games or events?

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Equipment

Playing Equipment

Is the equipment necessary for the game/activity regularly checked and maintained?

Are manufacturers guidelines/specifications/recommendations followed?

Is the equipment used for the purpose it was designed?

Is the playing equipment properly positioned?

Is the equipment in accordance with the regulations and recommendations of the sport?

Is the playing equipment properly stored, when not in use?

Are separate water bottles provided for the players?

Protective Equipment

Is protective equipment required for your sport?

Does the equipment fit the participant?

Is the participant dressed appropriately for the activity?

shoes?

clothing?

hat?

eye wear?

Are participants restricted in the type of protective equipment they may use?

Does an official check the equipment of all participants before training and competition?

Are mouthguards recommended for participants in your sport?

do mouthguards used by participants conform to safety guidelines?

Are helmets recommended for participants in your sport?

do helmets used by participants conform to safety guidelines?

Is body padding or other protective equipment recommended forparticipants in your sport?

does body padding or other protective equipment used by participantsconform to safety guidelines?

Does your club provide protective equipment for its players?

Is the protective equipment cleaned hygienically between use?

Is the club equipment checked and maintained regularly?

Are manufacturers guidelines/specifications/recommendations followed?

Is the equipment used for the purpose it was designed?

Is the equipment in accordance with the regulations and recommendations of the sport?

Is the protective equipment properly stored when not in use?

Playing Environment and Facilities

Surfaces

Is the playing surface clear of all hazards?

Is the surface safe for play eg grass mown, lines marked or floorboards secured?

Are sprinkler heads covered?

Are holes and uneven patches covered?

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Are cricket pitches covered with sand/soil for winter sports?

Are wooden surfaces safe ie no water on floor and line markings secure?

Is synthetic turf safe ie not worn or lifting?

Is the floor surface smooth, non slippery and clean?

Facilities

Is there adequate lighting for safe conduct of the game?

Is there adequate lighting in the change rooms?

Is there adequate lighting outside the building/complex and in the car park for safetyof participants arriving and leaving?

Are goalposts and hard objects that players may collide with adequately padded?

Are goalposts securely fixed eg in soccer so that injury does not occur?

Are corner posts/flags constructed to give way if a player collides with them?eg cardboard posts in football or race poles in snow skiing

Are safety or cushioning mats placed and secure?

Are spectators safely separated from the participants with an appropriate barrier?

Are the spectators safe from collision with players, objects etc?

Are the change rooms clean, tidy and hygienic?

Are hot showers provided?

Are non-slip mats provided in shower areas?

Does your club have a policy of not sharing showers and spas after training and matches?

Are emergency lights visible and functional?

Are there regularly maintained fire extinguishers within easy access?

Do facility structures and equipment comply with laws, regulations, rules and standards?

Does the facility have adequate ventilation and temperature control?

Is the facility pollution free?

Is there adequate protection for spectators and adjacent activity areas?

Is there access to drinking water?

Are all entry/exits secure and well marked/lighted and hazard free?

Is there emergency vehicle access?

Are natural hazards checked regularly and appropriately signed?

Environment

Does your club have a cancellation or postponement policy for adverseinclement weather, such as storms and lightning or hot and humid weather?

Does your club have a policy for water conditions:

water quality for open water swims?

water temperature for swimming and diving?

ocean conditions for sailing, surf swimming and craft events?

Is shade or sun shelter provided for players while waiting to compete?

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Injury Management and Rehabilitation

Does your club maintain injury records of participants?

Does your club/facility provide coverage by sports medicine professionals atgames or training?

Does your club have injury management and referral guidelines for participants?

Are players required to pass a fitness test before return to training and competitions?

Insurance

Does your club/facility have adequate insurance to cover catastrophicinjury and negligence liability?

Is your insurance linked to a sport safety plan?

Are claim forms easily understood and readily available?

Source: Sportsafe Australia - A National Sports Safety FrameworkAustralian Sports Commission 1997

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Risk Audit for Event Management

Introduction

Risk management is an important and integral part of the overall management of any event. Thesafety of participants, spectators, and all those involved in organising and running the event should beparamount to the organisation of the event.

Those with a good knowledge and experience of past events will usually be well placed to identifyand evaluate risks, and develop the strategies for the management of risks.

It is prudent though not to become complacent and rely on old hands. Things change andassumptions should never be made that risks are being managed.

The following process is designed to assist organisations to evaluate their risk management of eventsand consists of three distinct stages:

1. define the event

2. identify and catalogue risks

3. develop risk management strategies

1. DEFINING THE EVENT

Provide a synopsis of the event that details:

where the event is being held and who the management authority is for the venue ?

when the event is being held ?

what comprises the event ?

what guidelines will be applied in running the event ?

who will participate in the event ?

who the organisers of the event are ?

the allocation of responsibilities amongst the organisers ?

other organisations that will assist with its running ?

sponsors of the event ?

the circumstances under which the event will be cancelled or postponed ?

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2. IDENTIFYING RISKS

Identify risks using the following checklist as a prompt

1. The Organisation1.1 Is the event being run under the auspices of an incorporated organisation?1.2 Has the organising committee been delegated the authority to organise and run

the event?1.3 Is the role of the organising committee clear?1.4 Are responsibilities of committee members clear?1.5 Is the committee working to established timelines?1.6 Are accurate notes made of proceedings and decisions at meetings?1.7 Is good communication maintained between committee members?1.8 Is good communication maintained between the committee and the parent

organisation?1.9 Are organisers aware of their Duty of Care?

2. Finance2.1 Have financial projections been completed to establish the events viability?2.2 Has finance been allocated as a specific role to a committee member?2.3 Are arrangements in place to segregate event finances from those of the parent

organisation?2.4 Are all financial transactions pertaining to the event recorded?2.5 Are receipts kept for all purchases?2.6 Are safeguards in place to protect financial assets?

3. Participants3.1 Are participants screened to check they have the experience and fitness to safely

participate?3.2 Do participants sign a risk disclosure as part of their entry into the event?3.3 Are participants provided with specific safety information to assist their

preparation?3.4 Is a briefing given to participants before the start of the event?3.5 Is the condition of participants monitored during the event?3.6 Is a system in place to ensure all participants complete the course?

4. The Course / Playing Area4.1 Has the feasibility of the course been proven?4.2 Is the standard of skill required within the capacity of the likely participants?4.3 Is the course clearly marked?4.4 Do safety provisions for the course meet prescribed standards?4.5 Have specific hazards been identified and addressed?4.6 Is a final check made of the course before competition starts?4.7 Has permission been obtained for the event? (if on a public road/place)4.8 Are all conditions of any permits being met?4.9 Are warning signs placed to advise the public of the event?4.10 Are neighbouring properties or those likely to be affected advised prior to the event?

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5. Management5.1 Are course marshals, officials, timers, and safety personnel clearly briefed?5.2 Do all officials and safety personnel have appropriate qualifications?5.3 Does the communications system have the capability to meet all demands?5.4 Does the timing system meet the requirements for records to be recognised?5.5 Is a back up timing system in place?5.6 Has an appropriate first aid facility been arranged?5.7 Are parking facilities adequate?

6. Insurance6.1 Has a suitable cover been arranged for the event?

Does the cover include:- personal injury for competitors and officials?- legal expenses?- cross liabilities?- pluvial insurance?- property / equipment?- public liability?

6.2 Does the cover extend to preparation and winding up of the event?

7. Promotion7.1 Has a promotion plan been prepared for the event?7.2 Has a media plan been arranged for the event?7.3 Is a person clearly allocated the responsibility for media liaison?7.4 Are all press releases checked by the organising committee?7.5 Are media personnel provided with safety briefings on the day and guided to safelocations?

8. Sponsorship8.1 Is sponsorship a responsibility clearly allocated to one person?8.2 Are all sponsorship arrangements clear and known to the organising committee?8.3 Are competitors advised of any sponsorship requirements?8.4 Have checks been made to ensure there is no conflict between sponsors or deals?8.5 Is there good communication with all sponsors?8.6 Is there a process to advise sponsors of any crises associated with the event?8.7 Is every effort made to fulfil sponsorship agreements?

9. Emergencies9.1 Have all possible emergencies been identified?

(ie serious injury to participants, officials, spectators / fire etc)9.2 Have Emergency Response Plans been prepared to cover such emergencies?

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10. Equipment10.1 Are arrangements in place to ensure all the necessary equipment is available?10.2 Does all equipment used meet appropriate standards?10.3 Has the equipment been checked to ensure it operates correctly and safely?10.4 Are backups in place for critical items?10.5 Are the operators of equipment competent/qualified to use it?10.6 Are competitors and officials advised of personal equipment requirements?10.7 Are safety checks made of competitors equipment?

11. Spectators11.1 Do spectator facilities meet prescribed standards?11.2 Are controls in place to prevent spectators from entering hazardous areas?11.3 Are controls in place to limit alcohol consumption?11.4 Are controls in place to limit the throwing of missiles?11.5 Are suitable personnel available for crowd control?11.6 Are adequate sanitary facilities available for all spectators?

12. Facilities12.1 Do facilities meet the standards prescribed by the sport?12.2 Are responsibilities for management of the facility during the event clear?12.3 Are all participants, spectators, officials made aware of emergency plans for

the facility?

If you answered yes to all the above, your event has all the characteristics indicating riskis well managed. If you answered no it may indicate a problem that needs attention.

To complete stage 2, the risks identified through the audit process should be catalogued ina logical format. (See Case Study 1)

3. STRATEGIES FOR MANAGING RISK

Document strategies for managing risk and cross reference back to the risks catalogued toensure all have been addressed. (See Case Study 1)

It is useful to consider the following hierarchy when developing risk managementstrategies

Prevention Preparedness Response Recovery

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SPORT, RECREATIONAND THE LAW

Contents

Preface

The role of the law

Sport, recreation & the law

Key intersections of law and sport

Waivers and disclaimers

Glossary of terms

References

5.1

Prepared by and copyright to:

Rick Sarre

Associate Professor and Head

School of Law and Legal Practice

University of South Australia



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PREFACE

From time to time someone will allege that a sports issue has been side-tracked by legal argument,bogged down by legal technicalities and delayed by legal stalling. Sometimes there is justifiableconcern that some lawyers and their clients are playing out a game of time-wasting deceit. But mostoften, when these allegations are explored further, it is discovered that the delays have been causedby the exploration of legitimate legal concerns and the protection of the bona fide rights ofassociations, businesses and individuals.

The purpose of this section is to explain and reinforce the crucial role of law in the sports context, toexplore the legal issues that have the potential to arise in sports management, and to review riskminimisation processes in their legal context. Managers and administrators have to be aware of thelegal aspects of their work both as a way of minimising exposure to legal suits and as a means ofputting in place best practice mechanisms that will improve the way in which sport is conducted,managed and enjoyed.

THE ROLE OF THE LAW

Two July 1997 events, where firstly a young girl was killed while watching a demolition in Canberrain a fun day organised by the City Council, and then the horrendous collapse of a bridge at an Israelistadium just as Australian athletes were entering the arena, provide stark and sobering reminders ofthe potential loss of life and legal liability of those organisers and event managers who fail to considerthose for whom they should be responsible. The law exists to ensure that those responsible for lossare brought to account, and to demand that organisers put in place protocols to prevent, as far aspossible, injury and loss from occurring. Those who design the law attempt to ensure fairness, access,equity and justice generally in the administration of sports bodies and events, their managers andtheir participants.

The law of which we speak derives not just from statutes created in federal and state parliaments,but also from judges decisions in courts (common law). Judges are either creating precedents fromsituations which are not governed by statute, or from interpretations of statutes. Thus, if someoneasks, what is the law we need to know regarding the holding of our national championships? theanswer could involve a variety of answers: state statutes regarding employment law, common lawregarding occupiers liability, contracts and insurance, federal statute law regarding trade practices andso forth. The laws which may be involved to sort out the aftermath of the death of the girl inCanberra on the shores of Lake Burley-Griffin in July 1997 include contractual liability (commonlaw), liability for negligence (common law), potentially liability for breach of the criminal law (somestates have criminal codes) and perhaps federal health and safety standards and codes too, as well asfederal and state administrative law. Liability for the deaths of the Australians killed in Israel has theadded complication of invoking private international law and involving, essentially, the Israeli justicesystem, which is not based upon the British common law tradition upon which Australian law rests.

The enforcement of the law is, thus, governed by the nature of the legal action and the jurisdictionof the courts called upon to administer it. The issue of the law regarding sport can thus be rathercomplicated. The notes set out below are designed to make that journey a little easier to follow.

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SPORT, RECREATION & THE LAW

The world of sport has significantly changed from a generation ago. Lawyers are now anindispensable part of that world. Each day at the local, state and national level, sport, its participants,spectators and administrators are commanding more and more media attention, committing andspending more and more financial resources and thus requiring more legal attention than ever before.In addition to this, there are countless persons involved in the manufacture, sale and distribution ofrecreational equipment and supplies, not to mention stadium construction and materials. Many otherpersons are involved in the supervision of recreational and leisure centres and the provision of sportsentertainment. Furthermore, there is an entire industry built around magazine, newspaper, radio andtelevision coverage and commentary of recreational and sporting pursuits. Sport is now big business.

At the international level, too, sport and the law are inextricably mixed. It is not possible to convenean Olympic Games, for example, or arrange a sporting tour of a foreign country without calling uponthe principles of local and international law to guide administrators through the complex web oflegal questions concerning international rules, conflicting national laws and United Nationsresolutions. It is no longer possible, it seems, to convene a national event without engaging the law todeal with questions of contracts, the distinctions between amateur and professional status, the useand abuse by athletes of performance-enhancing (as well as psychotropic) drugs, allegations of result-rigging and racketeering, conflicts between the legal regulations of different states, nations, and thecontrol of potential crowd violence. Further, lawyers have witnessed an unprecedented growth in thenumber of damages claims in respect of sports injuries and contractual disputes.

There are a number of legal issues involved in all of these matters, and a range of minimisationstrategies which can be successfully employed. The following sections explore these questions inmore detail.

KEY INTERSECTIONS OF LAW AND SPORT

1. Liability in tort and contract for injuries to players and spectators

What are the issues?

The law recognises that certain people owe a duty to be careful to, and to take responsibility for,sports players and spectators (the legal duty of care). Because a person who is in charge of premises,for example, has the capacity to make those premises safe, or unsafe for that matter, then thatoccupier will be prima facie responsible if injury occurs to persons who come on to the premises.The main part of this discussion relate

Documents

Risk Management for Sport & Recreation