chapter 3 Risk Management

Chapter Objectives After reading this chapter, you will know the following: The foundation of risk management and key elements of the decision-making process The essential components of an emergency action plan and a crisis management plan The key elements of a lightning safety plan Management issues for sport facilities and those with disabilities

Why do we buy insurance? To protect things we have purchased/built that are valuable to us. Home, life, car, health, job disability…all things that are beyond our ability to replace easily. Do we insure everything? How do we decide what to insure? Insurance coverage is a part of risk management.

Risk Management Risk – “The likelihood or probability of harm” Risk Management – “The process of reducing or eliminating the risk of harm to participants and loss to an organization through injury and subsequent lawsuits.

Risk Management often centers around… …eliminating all unnecessary risk …reducing the risks as much as possible …preventing potential risks …planning for when harm occurs …training for when harm occurs …protecting the organization and its employees from potential litigation

When approaching Risk Management you must… Think like a manager use your personal experiences See everyone’s point of view (employees, fans, organization’s, legal community) Think like a risk manager Views everything as a risk They think about “awareness and preparedness” Think like an insurance company They are betting on your safety They deal in “probability and severity” of harm

When approaching Risk Management you must… Think like a lawyer They want to define, meet, and exceed the standard of care The want a defensible position and plan Think like a jury Did you provide reasonable care Did you try to prevent anything that was foreseeable Did you exercise “due diligence”

Ultimately, Risk Management is about Loss Prevention Avoid financial loss Avoid Time and Effort Resource loss Avoid Stress of the unknown Avoid damage to image and goodwill

Process of Managing Risk Like many things, managing risk is a process. This one has three steps we will identify. Recognition (Acknowledge all potential, relevant risks) Analysis (Identify and Evaluate the risks) Action (prevention measures, training) Sochi Olympics: olympics-security-travel/ olympics-security-travel/

Step 1 - Recognition (in a sports environment) Identify Categories of Risk –“Health” of participants and spectators –Safety of outside threats (terrorism, gang violence) –Crowd control and traffic flow (“crushing”, rushing the field) Specific types of “hazards” (something that holds the potential for harm) –Improperly prepared food (health) –Domestic and international terrorism (safety) –Seating, ticketing, exiting (crowd control)

Step 2 - Analysis: Part A - Risk Identification Finding and Identifying the hazard and its type of potential liability: Slippery floors or steps in stands Uneven turf on field Blocked exits Outdoor play areas Unsafe windows Low railings Lack of security presence  Use Records of past incidents and look for patterns (continued)

Analysis: Risk Identification (continued) How do we accomplish this? –Common sense? –Objective sources? Standards of care Industry standards –Overriding legal concepts? Negligence, strict liability cases Do these complement or supplant industry standards?

Part B - Evaluation of Risks Ask: What is the “Seriousness” of the potential injury: Importance from a legal perspective? What is the probability of an injury occurring? Does our action or inaction create causation or foreseeability liability?

What potential risks exist at this facility?

Step 3 - Action One risk has been recognized and analyzed, a course of action must be chosen. The course could be… Retention is the response to an evaluation of risks where no action is taken. The situation is kept as is. Treatment is the response to an evaluation of risks where some action is taken to reduce the risk. Transfer is the response to an evaluation of risks where methods are devised to place the risk of liability on another (e.g., through contractual agreements/waiver). Avoidance is the response to an evaluation of risks where action is taken to eliminate the risk (e.g., eliminating a program, facility, or service).

Action: Reducing the Probability of Risk Legal devices - waivers Insurance – require it, proof Transfer of risk – purchase liability What would a lawyer recommend? – research previous legal cases What should the manager do? – think through all scenarios

Action: Developing Policies and Procedures Development –Dissemination to every employee or volunteer involved –Impact of the Internet: Online versions of the rules (do you disseminate to the whole world or do you limit access?) Problem of gathering dust –Communication (out of sight, out of mind) –Constant updates of procedures (continued)

Action: Developing Policies and Procedures (continued) Standard of care –Development of a standard –Use of court precedents, statutes, industry rules Audits and inspections Schedules and timeliness

Emergency Action Plan (EAP) A comprehensive, proactive plan that addresses potential medical emergencies occurring in a sport setting Legal and ethical duty in preparation of such plan: Court rulings, statutes, regulations, industry standards

EAP Issues Communication Emergency training Location of EMS Role of first responder When to dial 911 Documentation Education and training

Crisis Management Plan (CMP) A comprehensive, proactive plan designed to lessen the negative impact on an organization in the event of a crisis.

Elements of a Crisis Management Plan Planning –Planning team –Development of an action plan Communication Postcrisis communication and response

Lightning Safety Issues NATA standards: Six essential components of a lightning safety 1. Organizations designate a person with the authority to remove participants. 2. Weather watcher should be appointed who notifies person with authority to cancel or suspend activity if severe weather becomes dangerous. 3. Monitor lightning. (continued)

Lightning Safety Issues (continued) 4. Structures for seeking shelter from lightning should be built, properly identified, and placed in areas where they can be quickly accessed if needed. 5. Specific criteria for suspending and resuming sport and recreational activities should be implemented, such as flash-to-bang count. 6. Knowledge of CPR and first aid.

Facilities and the ADA Title III bars discrimination against disabled individuals in the full and equal enjoyment of the goods, services, facilities, privileges, advantages, or accommodations of any place of public accommodation by any person who owns, leases (or leases to), or operates a place of public accommodation.

Title III of the ADA: Facility Design Reasonable modifications Facilities designed and constructed for first occupancy after January 26, 1993, are viewed as new construction and must comply with the ADA's more strict accessibility standards Specific percentage of disabled seating in various areas of the stadium Line of sight: Disabled must be able to see