Risk management is important because every sports organization will face risks. Risks can be viewed as potential hazards that may cause harm to a person or to property. Any harm that is incurred in connection to a sport and recreation organization may expose that organization to litigation, bad publicity, or financial or criminal sanctions. Risk management is making a decision on what to do about the risks that your organization faces. If you successfully control your risks through risk management, there can be some advantages to your organization.
Litigation. For instance, with good risk management, your organization may win or altogether avoid lawsuits. While anyone can file a lawsuit against your organization, a court may dismiss a case if they find there is no good reason for the case to be in court. Even if a case does progress to trial, your organization might successfully defend a lawsuit if you can show evidence of good risk management practices. The best scenario is that your risk management practices avoided any harm from occurring, thus a lawsuit is not even necessary.
Finances. Another reason to care about risk management is that it can save your organization money. Some risk management measures may cost money to implement, but the measures may save you money in the long run. For example, if you are sued and you do have damages awarded by a court, the amount may be considerably less if you have implemented good risk management practices. The amount of damages may also be significantly less or non-existent without good risk management strategies. Also, your insurance rates may be lower because you may have fewer claims. Then you can negotiate with your insurance provider that your risk management efforts deserve reduced premiums.
Ethics. Yet another reason to be concerned with risk management is because it is the most ethical choice. While you may have a legal duty to implement certain risk management measures, but you also have a moral duty to protect people from injury and property from damage. You should want to run a safe, enjoyable organization. Plus, good risk management can help you maintain a good public image and create an organization with which people want to do business.
Just like the terminology used in tennis, practicing risk management gives you an "advantage." Ultimately, you are in control of the risk management measures you practice so it is up to you to care about risk management. Contact the Nohr Sports Risk Management, LLC experts for more information.