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Comprehensive Guide to Risk Management and Legal Responsibilities in Facility Management

This book covers various laws including criminal, constitutional, contract, and federal law as well as tort law. It explores risk management strategies like the ECT approach: Reflect, Deflect, Detect, Inspect, Correct, Reinspect, Reflect. Learn how to identify risks, purchase appropriate insurance, and establish liability clauses. Understand legal considerations in property law, constitutional law, and government regulations. Discussion questions and activities prompt readers to assess fairness in the law and conduct a risk management audit.

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Comprehensive Guide to Risk Management and Legal Responsibilities in Facility Management

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  1. chapter12 Legal Responsibilities chapter 12 Legal Responsibilities Author name here for Edited books

  2. Basic Law • Criminal law • Constitutional law • Contract law • Federal law • State statutes

  3. Tort Law • Intentional torts • Unintentional torts • Negligence • Duty • Breach of duty • Proximate cause • Injury • Defenses • Assumption of risk • Immunity

  4. Risk Management and Insurance • The ECT approach is one strategy to help implement a risk management system. • The ECT approach is appropriately named because every element ends with the letters ECT: • Reflect • Deflect • Detect • Inspect • Correct • Reinspect • Reflect

  5. ECT Approach: Reflect • A facility manager needs to determine why he or she is interested in implementing a risk management program. Is the purpose to save money, reduce insurance obligation, or possibly run a safer facility? • Another concern in the reflect stage is to rank potential concerns in order of magnitude and impact. For example, an earthquake is not a major concern on the east coast of the United States, but it could be one of the bigger concerns on the west coast.

  6. ECT Approach: Deflect A facility can improve the risk management efforts by deflecting liability on to others: • Purchase insurance that will pay attorney fees and any damages if a claim is filed. • Insert clauses in rental contracts that require the renter to have insurance, assume liability, and hold the facility not liable for any claims. • Have participants (possibly parents) sign a waiver stating that they understand the risks of participating in the activity and will not sue the facility if they are injured while participating in the activity.

  7. ECT Approach: Detect • A facility manager needs to learn how to identify potential concerns or to retain individuals who are knowledgeable in risk management. • For example, the National Fire Protection Association (NFPA) requires larger facilities to conduct annual life safety inspections. Such inspections identify numerous concerns that can create a dangerous environment.

  8. ECT Approach: Inspect and Correct • Inspect: It is not enough to identify risks and dangerous conditions. Someone has to physically examine the facility and its policies to see if there is a hazard or if any area needs to be repaired or blocked from use. • Correct: Once an area or concern has been identified as hazardous, someone has to repair the hazard. This might require completing a work order or other means of communicating the needed repair to the appropriate people.

  9. ECT Approach: Reinspect and Reflect • Reinspect: Just because a work order has been completed does not mean the repairs or required actions were undertaken, or were undertaken correctly to resolve the hazard. Thus, the area needs to be reinspected to ensure it is safe. • Reflect: After a set time such as a year, or an event, the entire risk management process needs to be reevaluated to determine if it was effective and what steps can be taken to make it more effective in the future.

  10. Warning Signs Are a Component of Any Risk Management System

  11. Contracts • Agreement • Offer • Acceptance • Consideration: An exchange of value • Capacity • Over age 18 • Not intoxicated, on drugs, or insane • Legality: For a legal purpose

  12. Property Law • Eminent domain • Taking property for the public good • Paying fair value for the land • Nuisance: Noise or light • Zoning: What the local government will allow to be built

  13. Constitutional Law • First Amendment: Free speech (protest v. John 3:16) • Fourth Amendment • Search of a locker room • Search of guests coming into a facility • Fourteenth Amendment: Allowing female reporters into men’s locker rooms

  14. Government Regulations Various government regulations can apply: • Civil rights laws • Title IX • Civil Rights Act of 1964: Title VII • ADA: Reasonable accommodation • Smoking and alcohol regulations

  15. Summary • Facility managers need to anticipate responding to legal concerns: • Tort laws • Contract law • Property law • Constitutional law • Statutes

  16. Discussion Questions and Activities • Do you believe the law is fair, and what does fairness mean? • Develop a valid contract for renting a fictitious sport facility. • Go through a local sport facility and conduct a risk management audit.

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