Risk Management
Risk management is the course of action the club takes to reduce potential legal liability and address potential risks before they happen. It is about ensuring the safety of the club and the people involved in its operations, as well as those who come into contact with it.
All key people, including club committee members and volunteers, should be involved in every step of the risk management process.
The process for managing risk can be broken down into the following parts:
- Identifying Risks - Invite key people within the club to attend a risk brain-storming workshop to identify all potential risks at the club. Determine what can happen, why it can happen, and how it can happen. Risks can be grouped into physical risks, financial risks, ethical or moral risks, and legal risks.
- Analysing Risks - The criteria for analysing risk are based on Likelihood and Consequence - i.e., what is the likelihood of the risk occurring and what is the consequence of that outcome?
- Evaluating Risks – Determine whether the level of risk is acceptable or unacceptable.
- Treating Risks - Treatment should be appropriate for the level of the risk. Risk treatment options include:
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- Accept the risk - if the risk is minor or there is no capacity to avoid or reduce the risk, accepting the risk. However, you will need to have plans for managing and funding the consequences of the risk if it occurs.
- Avoid the risk - decide whether to proceed with the activity which generate the risk or choose an alternative with acceptable risks that still meets the activity’s goals.
- Reduce the risk - consider solutions that may reduce the likelihood of the risk occurring or reducing the impact if the risk occurs.
- Transfer the risk - involves the contractual shifting of a risk from one party to another, often through the purchase of insurance.
Once you decide how to treat identified risks you will need to develop, and regularly review, a club risk management plan. A risk management plan details your strategy for treating risks. It states information about:
- Identified risks the level of risks.
- The planned strategy.
- The time frame for implementing your strategy the resources required.
- The individuals responsible for ensuring the strategy is implemented.
It is recommended that the club establish a regime of both monitoring and review. Add risk management as a meeting agenda item to committee meetings throughout the year to ensure measures are being implemented and to determine the effectiveness of the measure.
CHECKLIST Risk Audit
Creating a catalyst for volunteering
WPA National Member Protection Policy
TEMPLATE Risk Management Matrix
TEMPLATE Member Protection Officer
TEMPLATE Risk and Safety Officer
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