Types of Risk Management Strategy

Event registration is a key risk management strategyRisk management is the process of planning, organising and controlling the organisation's activities to minimise the possibility that the organisation, and member or customer of the organisation, or even the wider community will suffer any harm or detriment.

The table below presents the four key types of risk management strategy to the existence of any identified risk:

Registration can be an important aspect in the risk control process if it is well thought through.

Risk avoidance

"An informed decision not to become involved in a risk situation".

Example 1: The club will no longer provide a training area for weight-training as it is deemed too great a risk.

Example 2: The club will not bid for the state championship because we have insufficient volunteers,

Risk transfer

"Shifting the responsibility/burden for loss to another party through legislation, contract, insurance or other means"

Example 1: When the organisation takes out Public Liability insurance, if a member of the public is injured on the premises and sues the organisation, any financial loss will be transferred to the insurance company.

Example 2: The club has contracted with a business to supply sport clothing and equipment to club members rather than hold stocks ourselves.

Risk retention

"Intentionally or unintentionally retaining the responsibility for loss or the financial burden of loss within the organisation

Example 1: The committee has decided not insure a valuable piece of equipment against theft or damage but instead to keep some funds aside to undertake repairs if needed.

Example 2: The committee have decided to bid for the State Championships despite the possibility of losing money.

Risk control

"The part of risk management which involves the provision of policies, standards, and procedures to eliminate, avoid, or minimise adverse risks facing the organisation."

Example 1: The committee, having identified risks associated with inappropriate conduct of coaches and have implemented a Coach's Code of Conduct which all coaches must sign on appointment.

Example 2: The club has implemented a rule that all batsmen must wear protective equipment while they are batting.

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