1. Risk Management
Paige
Anthony
Kendall

2. What is Risk Management
Risk management is a plan that helps you foresee risks, identify actions to prevent them from occurring and reduce their impact should they eventuate.
It is a list of foreseeable risk, their ranking and priority, to call and who to inform right away in case of the incident were to happen.

3. Why Risk Management is Important
Risk management allows you to identify the “unknowns,” problems that may occur later on in a project.
For example budget cuts, downsizing, etc
Implementing a good plan will allow you to better predict future outcomes.
Ultimately risk management provides insight in personnel planning and alerts staff of potential risks. The plan will then be analyzed, developed, implemented and monitored to address all issues before they affect your projects cost, performance, and schedules.

4. Risk Management Planning Steps
“The first step in the risk management process is to acknowledge the reality of risk. “
– Charles Tremper
Identification of potential sources of risk
Creation and adoption of philosophical statements
Risk analysis and evaluation
Risk control and reduction of loss exposure
Plan implementation
Periodic plan review

5. Identify Potential Risks
Determine what the major risks are for your nature of work.
Have all employees determine what they feel are potential risks and turn them into the manager to have them included into the Risk Management plan.
The three most potential risks that Recreation, parks, and leisure services face are; Property damage, public liability and business operation.

6. Philosophical Statement
Short quick building block that builds a framework for the risk management plan.
It should include the agency’s belief in developing a risk management program.
Identify the importance of risk management to the agency.
Identify who is responsible for risk management with in the company.
Also establish limits to that person authority.

7. Risk Analysis and Evaluation
In this step you should begin to evaluate the extent of loss exposure.
This includes financial cost as well as, public goodwill and volunteer resources.
In this step its wise to set up your own set of risks and levels of risk aversion
Van der Smissen (1990) pg 263 classifies severity of risk in two different ways, financially and the impact on the agency being able to provide services.

8. Risk Control and Reduction of Loss Exposure
This step analyzes the risks provided during the above phase, and take the necessary steps to minimize the risk.
The four general approaches to this section are
Eliminate the risk
Transfer the risk to others by contact
Retain the risk
Risk Reduction

9. Continued.1 Eliminate the risk Either by avoidance or discountenance
If you feel the event or program being offered by the agency is to much of a risk or is not meeting the agency goals for the program. Then that agency should avoid the event/program. (This includes funding's not being met, volunteer numbers, staff numbers etc.)
If the program has been met but is not showing good numbers as far as participants or financial stability, it is best to discontinue the program.

10. Continued..2 Transfer the risk to others
Transferring risk to a third party for a period of time.
Such as purchase order agreements, lease agreements, contracts for service, clientele agreements and insurance coverage.
Retain the risk
When an agency chooses to pay for all or part of a given risk.
The risk can be either Active or Passive.
Active risk is when the risk has be identified
Passive risk is when it is retained through error or oversight

11. Continued...3 Risk Reduction
The area where the agency personnel look at all areas of the agency’s operations to determine what can be done to limit the agency’s exposure to risk.
Purpose is to limit the frequency and severity of losses by the agency and allow the agency to continue its mission.

12. 4 strategies for a risk management plan
Accept the risk
Accept that there will be a negative impact
Avoid the risk
Change your plans to avoid the problem
Mitigate the risk
Lessens the impact of the risk
Transfer the risk

14. Plan Implementation Two step process
Choose the best management approach for the risk identified.
Then develop policies and procedures for each area which include
Program development
Staff and Volunteer Development
Management of agency clientele
Site and facility development
Public Relations
Hilarious Operational Risk Management Video

15. Periodic Plan Review
Review the management plan periodically. Go over assumptions and decisions to make sure the risk is still there and come up with the new risks.

16. Benefits of Risk Management
Helps to identify risks early and incorporate into plans
Increase the chance of project success
Determine accountability and ownership
Manage expectations
Encourage proactive management practices
With a well developed risk management plan you and your agency will be less likely to run into legal issues in the future.

17. Quiz What are “Unknowns”? What are two ways to eliminate risk?
What is the first step to writing a risk management plan?
What is one benefit of a risk management plan?
What are the three potential risks in a parks and recreation agency?