Risk management is simply identifying, analysing and minimizing risks and developing cost-effective methods of treatment and/or prevention. It may not be possible to have a risk free environment but it is possible to manage those that exist be it financial, legal or physical.
Your club needs to have a process in place to:
- Identify potential problems (or hazards)
- Rectify or prevent the problems, on a prioritised basis
- Provide assistance with managing incidents when they occur
- Ensure a system of follow up occurs
- Ensure this process is continuous
Risk Management can be defined using the following process:
Establish a list of things are risks to your club. These can be physical risks, but may also be non-physical, like relationships, outside influences etc.
By using a matrix to analyse the likelihood versus impact of certain risks, it can clarify which ones need more attention. The matrix below shows how to categorise each risk, with the more likely, and higher impact at the higher end of the scale.
Once analysis is complete, analyse each risk against the others to prioritise them for action. Remember that eliminating the risk is always the best policy.
Implement the requirements to control the risks. Monitor the actions you take and ensure that treatments are appropriate and effective.