Is Your Organization Due for a Risk Assessment?

When is the last time your sports or recreation organization or facility performed a risk assessment? What is a risk assessment, you may ask (possibly embarrassed that you don’t know)? Generally, a risk assessment is a step in risk management planning in which there is a determination of the quantitative or qualitative value of risk in relation to recognized hazards. What does that really mean?

It’s essentially performing an objective evaluation in order to determine what the potential losses are and the probability of their occurring. For example, if you frequently transport athletes in team owned vans, there may be a moderate probability that minor motor vehicle accidents will occur and the potential loss is moderate as well. The same organization may assess the chance of terrorism at a low probability of occurrence, but that the loss would be catastrophic in terms of severity. Making these determinations will assist your organization regarding decision making in risk control and risk financing. What techniques should be implemented in order to minimize the risks and to make such risks tolerable? Risk financing is important so that you can plan for how losses will be financed in advance. Will you purchase insurance, self insure or do a combination of both?

Your organization and facilities are living entities in that they change over time. If you had a risk assessment two years ago, it is likely that things have changed. Policies and procedures, equipment, technology, employees, management, economic climate, financials, goals, programs, and many other elements that make up your organization change over time. As changes occur, risk assessment and risk management planning must be updated so that you will not be caught by surprise when lawsuits, claims and disasters occur. Nohr Sports is available to address your sports risk management and risk management planning needs.