What is the definition of Risk Management?
- “Risk Management” is defined as reducing the chances of injury, damage or loss by taking steps to identify measure and control risks”.
- The process of analyzing exposure to risk
- A system for making choices with respect to those we serve and the procedures we adopt, and the way we conduct our programs and organizations
- Risk Management is the thorough identification and evaluation of risks, and the careful selection and implementation of risk control strategies.
Why is Risk Management so important?
- It helps the organization practice good business management
- It improves customer service and public image /shows that we are exercising due diligence
- It helps make insurance available and affordable/will not affect the price of dues
- It helps the organization and individuals defend themselves in a lawsuit
- It reduces injuries to participants (excellent marketing as injured participants don’t usually return nor do family and friends)
- It protects club members and their families
- It reduces the occurrence of harmful disputes
- It enables the organization to govern more effectively
- Insurers and funding agencies/organizations/partners may require it
Being involved in community activity, whether the ultimate objective is service, fellowship or personal development, it is a risky business; there is no escaping it. Any time your club or the members of your club are involved in activities that involve contact or interaction with the rest of the world, there is a chance someone could get hurt, something could get damaged, or some other kind of loss could be sustained. Unfortunately, there is an equally good chance that if a mishap does occur, the good name of your club could be front and centre when the fingers are pointed. You and/or your club could be exposed to some major costs and inconvenience in the process of “making things right” and clearing your name.
Today’s society tends to sue first, and ask questions later. It is no longer enough to be in the right. You have to be perceived to be doing everything in your power to prevent anyone from suffering any kind of personal, property or financial loss when they are doing something that you are connected to in some way. Whether it is attending a dance or party run by your club, playing on playground equipment, participating in a sports event – whatever – you need to be aware of the risk management policies and procedures that should be used to help prevent loss and/or liability.