Risk management is an important aspect of running a club and ensuring a safe environment for all club members and stakeholders.
Risk management is the process of identifying a risk and putting in place strategies to minimise or eliminate the risk.
Risk management is not a complicated process and will protect the club and its members against the following risks:
- Financial and asset risks
- Governance risks
- Brand/reputation risks
- Member health and safety risks
There are four steps in the risk management process.
- Identify the risk: Identify what, why and how things can arise
- Analyse the risk: consider the consequence and likelihood of the risk in the current environment. Consequence and likelihood may be combined to produce an estimated level of risk.
- Evaluate the risk: using the estimated level of risk, evaluate the level of risk. If the levels of the risk are low, then it may not need action beyond its current controls.
- Treat risk: put measures in place to ensure the risk has a minimal impact or is eliminated. Please note that some risks won’t be eliminated due to their nature.
Developing a Risk Register will ensure all risks are monitored and reviewed constantly.