Risk Management

1. Risk Management Dragon Boat Canada November 27, 2010

2. RISK MANAGEMENT • Traditional approach focus on injury prevention • Conventional approach  focus on avoiding other losses (legal, financial, membership attrition, etc.) • Modern approach  risk management as a comprehensive approach to improve performance through effective governance, efficient planning, relevant programming (AS/NZS 4360:1999)

3. DEFINITIONS … RISK • The chance of something happening that can have an impact on achieving desired outcomes (objectives) RISK MANAGEMENT  • The process used to identify, assess and control risks so as to better achieve desired outcomes.

4. RISK MANAGEMENT PLAN • Formal commitments by an organization to implement, monitor and evaluate risk management strategies • These commitments are reflected in either a risk registry or in the organization’s strategic plan

5. WHERE TO ASSESS RISK? Governance Fiscal Operational

6. OUTLINE Question 1 - How does the law expect me to behave? (negligence & liability) Question 2 - Given what the law expects, how do I ensure that I behave appropriately? (risk management)

7. NEGLIGENCE Duty of care - you have a responsibility to ensure the reasonable safety of some person(s) Standard of care - This duty requires that your conduct reach a certain (legal) standard (in the areas of facilities, equipment, people & programs) Someone for whom you have this responsibility is injured The injury comes as a result of your breach of the standard of care (or the breach by someone within the organization) OOPS!

8. Highest possible level of care- risk is eliminated Reasonable standard of care in the circumstances - risk is appropriately managed Failure to exercise any care - risk is ignored STANDARD OF CARE Behaviour is not negligent Behaviour is negligent

9. STANDARD OF CARE • Written standards& policies • Unwritten standards • Case law • Common sense

10. Do the circumstances impose a duty of care? YES NO Has the standard of care imposed by this duty been breached? YES NO Is there resulting harm or loss? YES NO Did the breach of the standard cause or substantially contribute to the harm or loss? YES NO Negligence! Is there liability? maybe YES, maybe NO

11. Direct Liability Indirect (Vicarious) Liability Negligence Third Party Liability Negligence Liability Relationship

12. RISK MANAGEMENT • Identify risks – ask, what are the things that would prevent us from meeting our objectives? What can go wrong? • Measure risks – ask, what is the chance it will go wrong, what are the consequences if it does? • Control risks – ask, what can I do to reduce or avoid the risk & how should we respond if it does happen?

13. IDENTIFY THE RISK (Operational) • Program • Facility • Equipment • People - Occupiers’ Liability Act

14. MEASURING THE RISK

15. RISK High Consequence Low Low High Likelihood

16. CONTROL THE RISK • Retainthe risks • you don’t do anything because the risk is inherent in the sport • Reduce the risks • you take steps to reduce the likelihood of occurrence, and/or the consequences, largely by changing human behaviour • Transfer the risks • you accept the level of risk but you transfer this risk to others through contracts (insurance, waivers, other business contracts) • Avoid the risks • you decide simply to NOT do something

17. CHOICE OF RISK MANAGEMENT STRATEGY severity avoid transfer reduce retain L M H frequency

18. Risk Management Measures

19. WAIVERS have all participants in program sign a waiver agreement INSURANCE review all insurance needs and renew policies appropriately CONTRACT MANAGEMENT include proper indemnification provisions in all contracts signed by the organization CONTRACT FOR SERVICES contract out work to other parties (instructional clinics, event management, security, catering/bartending, transportation) JOINT VENTURES create separate corporate entity to host major events RISK TRANSFER MEASURES

20. Strategies to retainrisks and to transfer risks (including insurance) do nothing to prevent the risk, harm or loss from occurring in the first place Strategies to reducerisks and to avoidrisks are directed towards preventing the risk, harm or loss from occurring RISK CONTROL STRATEGIESANOTHER PERSPECTIVE

21. IDENTIFY HIGH RISK AREAScontract others to perform these activities • Event management • Transportation • Catering and food service • Bartending • Instructional clinics

22. WAIVERS An intentional, informed and voluntary agreement to give up a known legal right

23. RISK IN SPORT LEGAL RISK The risk that the organizers of the sport activity will behave negligently. This risk is not inherent in the sport, nor is it desirable, reasonable or acceptable PHYSICAL RISK The risks, dangers and hazards that are inherent in the sport activity. These risks are unavoidable, reasonable and in many cases, desirable

24. PHYSICAL RISK A participant can consent to physical risks by the act of participating or by verbal or written agreement. LEGAL RISK A participant can consent to legal risks ONLY by means of a written agreement. This is a “waiver of liability“ agreement CONSENTING TO RISKS

25. WAIVERS CONTEXT – is the waiver being used in a setting that is appropriate for such use WORDING - is the waiver easy to read and understand? CONTENT - are all activities, all parties, all risks covered (including negligence)? EXECUTION - does person have authority to sign a contract, did they have an opportunity to read and understand the contract, did they sign the contract voluntarily?

26. WAIVERS CONTEXT – is the waiver being used in a setting that is appropriate for such use WORDING - is the waiver easy to read and understand? CONTENT - are all activities, all parties, all risks covered (including negligence)? EXECUTION - does person have authority to sign a contract, did they have an opportunity to read and understand the contract, did they sign the contract voluntarily?

27. Safety Risk management measure Opportunity Threat

28. RISK MANAGEMENT http://www.2010legaciesnow.com/club-standards/ Risk Management Guide for Community Sport Organizations (through 2010 Legacies Now)

29. QUESTIONS?