When we talk of risk management for sport there is a tendency to think of injury.  Whilst safety in sport from the physical perspective is extremely important, the principles of risk management extend far wider.  The risk management process can be applied not only to participation but also to financial management, facility management, occupational health and safety, legislative compliance, operations and maintenance issues, environmental issues political issues, reputation and image to name but a few.  In fact for every management function the principles of risk management can be applied.

Risk management is an integral part of day to day management, it is not something which stands separate to quality management.

The Australian and New Zealand Standard defines risk as "the chance of something happening that will have an impact on objectives".  Therefore risk is not necessarily bad or good.  Often the more risk involved with a venture the more potential exists for profit.  It is how well we manage risk that is the key, and usually success in that regard is reflected in the bottom line of the financial statements.

So bottom line result is very much effected by sound risk management strategies throughout all aspects of the sport's operations.

Three questions which are fundamental to the risk management process are:-

• WHAT CAN HAPPEN?
• WHAT CAN WE DO ABOUT IT?
• HOW CAN WE PAY FOR IT?

The first question relates to risk identification - a very important part of the process as any risk unidentified is unmanaged.  An earlier article is Sport magazine (Autumn/Winter 1997) addressed identification of risk.  In this edition we will consider the "what can we do about it?" - or treatment of risk.

Risk treatment involves identifying the range of options available for treating risk, evaluating those options and then preparing and implementing the treatment plans chosen.

Major treatment options promoted in the Australian and New Zealand standard are:-

• Avoid the risk altogether by deciding not to proceed with the activity likely to produce the risk.  This form of risk treatment is useful only when ending the activity altogether for the sake of forestalling risk justifies the resultant inconvenience.
• Accept the risk within the organisation and establish an appropriate risk financing plan.  This can include accepting risk in it's untreated state, or accepting residual risk after it has been treated by methods such as outlined below.  It is important that risks are not retained by default; that is by failing to identify and / or appropriately transferring or otherwise treating risk.
• Proactive measures which rely on rational risk identification and analysis are reducing the likelihood of the occurrence and reducing the consequence of the occurrence.  If we use for illustration purposes the risk of participants being injured by making contact with goalposts, an example of reducing the likelihood of the occurrence would be by the rules of the sport restricting the number of players which can be in  the goalpost area.  Reducing the consequence of collision with the goalpost can be achieved by padding the goalpost.
• Transferring the risk involves another party or parties bearing or sharing some part of the risk.  Examples of this include the use of contracts (e.g. contracting out kiosks / catering to another organisation) and insurance.  The transfer of a risk to other parties, or physical transfer to other places, will reduce the risk to the original organisation, but may not diminish the overall level of risk to society.

                                                                     Continued.....