RISK MANAGEMENT

INFORMATION
GUIDELINES

Developed by AU Sport and approved by the AU Sport Board April 2014

Contents
1. Introduction:

What is Risk
1.

2. Identification
Step 1: Identify general risks
Step 2: Identify specific risks
Step 3: Audit Check List

2.

3. Assessment
Step 4: Evaluate the risk
- Risk priority matrix
- Table 1: Likelihood of risk occurring
- Table 2: Consequence of risk occurring
Step 5: Prioritise the risk

6.

4. Treating the Risk

Step 6: Treating the Risk
- Action plan template
- Additional Resource

8.

5. Develop risk management policy and plan

11.

6. Communication

12.

Appendix
Risk Priority Matrix Tables

14.

This document and supporting templates were developed by using

information provided by:
Guide to developing Risk Management Plans for Sport and Active Recreation Clubs,
Vic Sport
http://www.vicsport.asn.au/Assets/Files/Sport%20and%20Recreation%20Organisations
%20Guide%20to%20Developing%20Risk%20Management%20Plans.pdf
Smart Play Safety Guidelines for Sporting Clubs, Associations and Facilities
Sports Medicine Australian (SA & Vic Branches), 2000
http://www.smartplay.com.au/ImageLibraryAssets/Resources/National/policy-guidelines-2008safety-guidelines-for-clubs-associations-and-facilities-booklet-nat.pdf
Risk Management Resource for Recreation and Sport Organisations,
Government of South Australia, The Office for Recreation and Sport, updated 2009
http://www.recsport.sa.gov.au/about-us/risk-management/index.html

1. INTRODUCTION
In line with the AU Sport Risk Management Policy, we recognise that it is vital
to have good Risk Management practices in place at both the Club and
Association level. There is also an acknowledgement however, that no single
plan and model will fit all of the AU Sport Clubs. For many AU Sport clubs,
Risk Management can be seen as a complex and overwhelming issue,
especially those undertaking high risk activities.
This document aims to provide basic background information on what is risk
management and should be used in conjunction with the AU Sport Risk
Management Policy and the AU Sport Risk Management Plan Template. It
identifies the steps involved when a club is reviewing their risks and risk
management plan needs to be created. User-friendly check lists and
templates have been developed to assist clubs in this process.
What is Risk Management?
A risk is defined as, anything untoward happening that can affect your
organisation by creating exposure to potential loss or damage.
Risk management can be simplified into four questions:
1. What untoward things could happen?
2. What would be the impact?
3. What can we do about it?
4. How do we tell everyone about it?
There are many areas where a risk can occur that can affect the success of
an organisation, i.e. a risk is more than just a physical risk. Areas where risks
can occur include:

Governance
Financial
Brand
Member services
Sports competition / activities
Social events
Facilities

There are three main stages to risk management: identification, assessment

and treatment. Treatment also involves implementation and ongoing review.
The different stages can be seen in action below:

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Step 1: Identify
hazards

Step 1: Identify hazards

Step 5: Monitor and Review

Is there a regulation, advisory

standard or Code of Practice
regarding the hazard?
No

Yes

Step 4: Implement Control Measures

Step
Step2:2:Assess
Assess risk
Risk Matrix
Risk
Step
3: 3:
Decide
on Control
Step
Treatment
ofMeasures
Risk

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Comply with
the
Regulations

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2. IDENTIFICATION
Step 1: Identify general risks areas
The key to developing a comprehensive risk management policy and
plan lies in clearly identifying all the risks that may arise from the
conduct of your activities and members. To make this task easier, it
is recommended you break down the total risk management plan
into a number of general risk areas, which AU Sport has done on
behalf of all clubs.
Governance
Finance
Brand
Member Services
Sports Competition/Activities
Social Events
Facilities
Step 2: Identify specific risks
This is the most complex and time-consuming part of the process.
You must now sit down and attempt to identify every individual risk
you can think of that exists for your club.
AU Sport clubs will need to build on the list that AU Sport has
developed in the AU Sport Risk Management Audit Check List tool
to ensure that it covers all of their activities. Those clubs that
undertake higher risk activities will especially need to look closely at
those activities.

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Step 3: AUDIT CHECK LISTS

GOVERNANCE
Yes

Don
t
kno
w

No

Yes

Dont
know

No

1. Fundamentals
Is your organisation incorporated?
Does your club have an up-to-date constitution? (reviewed no more
than 3 years ago)
Is an AGM held in accordance with the constitution?
Is the Annual Report circulated to all members?
Is your organisation affiliated with relevant bodies (i.e. State Sporting
Body, AU Sport)
2. Policy
Are your rules, by-laws and practices non-discriminatory?
Do you adhere to all policies and processes that are imposed on the
club by organisations that you are affiliated with?
Are these policies communicated to all affected?
Are club files and documents kept in a central location (either
physically or electronically)?
3. Management
Does your organisation have any policies or procedures to guide its
decision making? (Code of conduct for the Board / Committee,
Conflict of interest policy, etc.)
Do you have position descriptions for all office bearers/staff?
Does your board/committee meet regularly and document all
decisions and actions?
4. Planning
Do you have a clear plan for the future that describes what you want
to do and how you are going to do it?
Do you have a succession plan?
Are people encouraged to take up leadership roles?
FINANCE
1. Policy
Do you have good financial policies and practices documented?
Is all expenditure authorised through an identified process?
2. Management
Are all financial transactions accurately recorded (receipted /
banking)?
Do you present regular financial reports that identify how you are
travelling against your budget?
Do you have a (realistic) budget?
Is an annual audit conducted of your financial records?

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BRAND

Yes

Dont
know

No

Yes

Dont
know

No

Yes

Dont
know

No

1. Policy
Are marketing / brand plans and guidelines in place and followed?
2. Management
Are technology tools (website / Facebook / online databases etc)
maintained and secure?
Are media activities / reports monitored and appropriately addressed?
Are social media outlets (Facebook, Twitter, Linked In) monitored and
guidelines in place?
Is the website updated regularly?
MEMBER SERVICES
1. Policy
Do you have a member protection policy?
Do you have a volunteer / staff management policy in place?
Do you have a Child Safe Environments policy and officer?
2. Management
Are procedures in place to ensure the security of membership
information and compliance with privacy legislation?
Does your organisation communicate regularly and effectively with its
members?
Do you have a procedure for dealing with complaints?
Do you provide volunteers / staff with inductions information?
3. Duty of Care
Do members understand the extent of their duty of care?
Has everyone (staff, volunteers and participants) agreed to a code of
behaviour or conduct?
Do you require participants to sign a waiver or release form prior to
participating?
Are medical details / emergency contacts accessible to those who
may need to access them?
SPORTS COMPETITION / ACTIVITIES
1. Policy
It there a general event management policy / guideline?
Are there policies and guidelines for individual events?
Do you have an OHW&S policy and procedures in place? Eg
Weather policy, alcohol and drugs, Asthma, Infectious disease,
Pregnancy
2. Management
Are you competing in a well-managed competition?
Do you ensure the recommended rules of play and protocols are
followed for your activity?
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Are contingency plans in place?

Are details / policies of the activity communicated to those involved?
Are equipment guidelines on use / replacement / storage in place?
3. Duty of Care
Are you insured for all activities?
Do you conduct risk assessments on all programs, activities and
events? (especially for high risk activities)
Are risk assessments documented?
Is there a clear procedure for reporting accidents/injuries?
Are regular safety inspections made of buildings, grounds and
equipment?
Do you have an adequate first aid at all activities (sports trainer / first
aid officers / first aid kit)
Are those involved (players / coaches / officials) aware of their roles /
responsibilities / duty of care?
Do all coaches/instructors/leaders have appropriate, current
accreditation? (police checks / accredited training etc)
Do you promote education and training opportunities?
Do those undertaking high risk activities have the skills / experience /
knowledge to do so or are they supported by someone who is?
SOCIAL EVENTS

Yes

Dont
know

No

Yes

Dont
know

No

1. Policy
It there a general event management policy / guideline?
Are there policies and guidelines for individual events?
Do you have an OHW&S policy and procedures in place?
2. Management
Are events promoted via different means?
Are there guidelines on what is an official club / association event and
involvement?
3. Duty of Care
Are all events covered by the correct insurance?
Are events appropriately staffed?
Is there a Risk Management assessment or check list completed for
each event?
4. Alcohol
Do you promote a positive drug and alcohol responsibility (Good
Sports/University policy)?
Are there guidelines on use and sale of Alcohol?
FACILITIES
1. Policy
Are guidelines of use in place?
2. Management
Are booking process in place?
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Are facilities regularly cleaned and maintained?

3. Duty of Care
Are damages and potential hazards appropriately reported?
Are adequate storages in place for the safe keeping of equipment and
other goods?
Are medical Emergency and evacuation plans visible and up to date?

Specific Risks

Yes

Dont
know

No

Add details here of any specific risks that your club faces
For all of those that you tick as a No or dont know, please evaluate the risk
in terms of the likelihood and priority. If you tick a Yes, but still feel that it
needs addressing, please evaluate the risk as well.

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3. ASSESSMENT
Step 4: Evaluate the risks
The risk evaluation process gives each identified risk a priority
rating based on the likelihood of the risk occurring and the
consequence to the club if it does occur. This can be done using a
Risk Priority Matrix. High priority risks will be those having a high
impact on the organisation and/or a high probability of occurring,
while low priority risks will be those having little chance of occurring
and/or little impact on the club if they do occur.
Risk Priority Matrix
The Risk Priority Matrix allows you to determine the level of risk for
each particular incident that has been identified in the Risk
Management Audit Check List, should it occur.
The Risk Priority Matrix gives each identified risk a priority rating,
from extreme to minor, by combining the factors of the likelihood of
occurrence with the consequences should the risk arise. To use the
risk priority matrix, refer to Table 1 to rate the Likelihood of each
identified risk and then Table 2 to rate the Consequences should
that risk arise. As risks will vary between clubs, it is up to you to
determine the likelihood and the consequences of each risk arising.
There are no right or wrong answers here, just aim to measure each
risk as accurately as you can. Consultation with AU Sport at this
stage may assist in the process.
Once developed, your priority listing will help you to clearly see
which of your risks should be treated as a matter of urgency, as
they have a high probability of occurring and/or serious
consequences should they occur.
Table 1: Likelihood of Identified Risk Occurring
Rating
A
B
C
D
E

Likelihood of identified risk occurring in the course

of a year
ALMOST CERTAIN: will probably occur, could occur several
times per year
LIKELY: high probability, likely to arise once per year
POSSIBLE: reasonable likelihood that it may arise over a
five-year period
UNLIKELY: plausible, could occur over a five to ten year
period
RARE: very unlikely but not impossible; unlikely over a ten
year period

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Table 2: Consequence of Identified Risk Occurring

Ratin
g
A

Potential Impact In terms of the objectives of the

organisation
EXTREME: many objectives will not be achieved; or several
severely affected, extensive injuries, hospitalisation, event requiring
investigation and outside assistance (eg,Fire Service, Police)
MAJOR: most objectives threatened or one severely
affected
MODERATE: some objectives affected, considerable efforts
to rectify
MINOR: easily remedied, with some effort the objectives
can be achieved
NEGLIGIBLE: very small impact; rectified by normal
processes

B
C
D
E

Once you have given each risk an A-B-C-D-E rating for both
likelihood and consequence, you then simply identify the level of
risk on the risk priority matrix (below) by correlating the likelihood of
occurrence with the consequences of occurrence.
Step 5: Prioritise the Risk
Once you have determined the likelihood and consequence rating
for each risk you can enter these ratings into the Risk Priority
Matrix to get a risk priority rating for each identified event.

Likely hood

Consequence
A
B
C
D
E

A
Extreme
Extreme
Extreme
Major
Medium

B
Extreme
Extreme
Major
Major
Medium

C
Major
Major
Major
Medium
Minor

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D
Major
Medium
Medium
Minor
Minor

E
Medium
Minor
Minor
Minor
Minor

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4. TREATING THE RISK

Step 6: Treat the risk
Once a risk has been identified and prioritised, it must either be
accepted or treated. Some risks are acceptable simply because the
level of risk is so low it does not justify any further action. As an
example, minor injuries in contact sports, such as bruising, are
considered part of the game. Other risks must be accepted simply
because there is nothing you can do about them, such as the forces
of nature. Most risks can be treated or managed in some way. Some
of the more common ways to manage risks include:
Avoid cancelling or postponing an activity considered to be high
risk, such as a surf competition in dangerous weather or a fun run in
extreme heat.
Reduce taking proactive measures to reduce the likelihood of a
risk occurring or the consequences should an event occur. Modifying
or changing the rules of a game, using protective equipment or
backing up electronic data are examples of risk reduction.
Transfer examples of transfer include taking out insurance or
using waiver or indemnity releases to transfer the whole or part of
the responsibility for the risk to another party. It is important to note
that taking out insurance or using waivers or indemnity releases
does not limit the risk of the incident itself, it simply helps to protect
the organisation if an incident does occur. AU Sport and its clubs still
have a responsibility to limit, in every way possible, the chances of
an incident occurring. Insurance is not an excuse for negligence.
Accept a club can choose to accept the risk of an incident
occurring and to carry the consequences should such an incident
arise. As an example, your club may choose not to insure your
building and contents against fire or theft as these events rarely
occur. When choosing to accept a risk and its outcomes, the
organisation must be fully aware of the consequences of
acceptance. In the case of a fire causing extensive damage to an
organisations administration headquarters, the organisation who
choose to accept and carry the costs of such an incident occurring
will be faced with covering the costs of replacing both the building
and any contents damaged by the fire. It is recommended your club
carefully weigh up the benefits, versus the costs of choosing to
accept and carry the consequences for a risk. While unlikely events
rarely occur, they can still happen and, should such an event occur
without appropriate support in place to cover the outcomes, the
consequences can be extreme. When setting out to manage risks,
you must ensure treatment is effective.

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When planning to manage a risk you must determine:

How will the risk be managed?
What resources will be required?
Who will be responsible for managing the risk?
When will the task be completed?
When will the risk and the management plan be reviewed?

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Summary Action Plan

POTENTIAL
RISK ID

LIKELIHOO
D OF RISK

Date ID

CONSEQUE
NCE OF
RISK

RISK
PRIORIT
Y

CONSEQUENCE OF
RISK

ACTION
(What is to be done)

RESOURCES
required

RESPONSIBILITY

TIMELINE
(when is it
to be
completed)

COMMUNICATION

Date

How will you

communicate
the process to
those who need
to know

RISK
TREATED

DATE
REVIEWED

Risk Area: (i.e. Governance, Finance, Brand, Member Services, Sports Competition, Social Events, Facilities)
Risk Number: Sub Heading (i.e. Policy, Management, Duty of Care)
Prior to an incident:
Identified
Outcome:
Risk
Identified what
What is
Steps taken before the needed
Risk:
A/B/C/D/E
Priority
could happen if
risk occurs
What is the
Matrix
the risk is not
risk
Outcome: addressed.
Post incident::
Outcome:
Extreme
Steps taken after the
risk occurs
Date:
A/B/C/D/E
Major
Identified
Medium
Minor
Identified
Risk:

Prior to an
incident:
Who
Post incident:
Who

Date:
Identified
Risk:
Date:
This Action plan will assist you in the process of addressing those risks that you have identified in the steps above and recording
who has the responsibility to address the risk.

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Date

Additional Resource: Risk Action Plan

For those clubs or risks where more detail to address the risk needs
to be provided.
DATE:

RISK CATEGORY:
IDENTIFIED HAZARD:
RISK PRIORITY:
LIKELIHOOD OF RISK:
CONSEQUENCE OF RISK:
Responsible Agencies:
Pre-emptive:

Who will address the risk to reduce the likelihood of the incident occurring?

Response:

If the incident occurs, who will address the risk during/after the incident?

Pre-Emptive Actions:
Actions taken to avoid/reduce/transfer/accept the risk
For example:
Inspections and ongoing reviews
Backup plans
Policy and guidelines developed and communicated to members

Proposed Response:
Actions taken if the event occurs
Resource Requirements
What resources (financial, equipment, people, communication capabilities) will be needed for
pre-emptive and response?
Time Frame:

Compiled by:

Date:

Reviewed by:

Date:

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5. DEVELOP A RISK MANAGEMENT POLICY AND PLAN

From the work completed in the previous steps, you have identified
risks, measured their potential impact and made a decision on how
to treat that risk.
Developing a user friendly but comprehensive Risk Management
Policy is the key to managing risk and ensuring the safety of your
club, your members and AU Sport. It sets rules and guidelines on
how your club and its members will manage risks. Clubs are able to
adopt AU Sport Risk Management Policy in its current form or they
may wish to develop their own. If a club chooses to create a risk
management policy that is specific to their club, it must still be in
line with the AU Sport Risk Management Policy.
A Clubs Risk Management Plan will form part of AU Sports overall
Risk Management Policy. Once you have identified, prioritised and
decided how you are going to address a risk, a Risk Management
Plan is a way to communicate what steps need to be carried out to
prevent/reduce the risk and what steps need to be taken if an
incident due to the risk occurs. Many of the steps undertaken here
and the templates provided will form the majority of a clubs Risk
Management Plan.
The contents of a Risk Management Plan should include:
1. Introduction
Explains who is undertaking the plan, what is to be assessed and
why it is important
2. Definitions
Provides definitions for abbreviations
3. Identification
Involves classifying risks into different areas, which AU Sport has
done. It also includes the process of identifying the risks using
the AU Sport Audit Check List.
4. Assessment
Explains the Risk Assessment process and how risks are
prioritised using the Risk Priority Matrix.
5. Treating the Risk
Defines how the club can address a risk
6. Risk Action Plan
Use the AU Sport Summary Action Plan or the AU Sport
Additional Resources to document the steps needed to
address the risk before an incident occurs and what actions need
to be taken if an incident occurs.

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7. Communication
Explains how this plan and its outcomes will be communicated to
members
8. Review
Provides a date for when the club will review its risk management
processes and plan
A template: AU Sport Club Risk Management Plan can be
downloaded from theblacks.com.au
6. COMMUNICATION
Communication is the most important factor in successful
implementation of any Risk Management Policy and Plan. The best
policy in the world is of no use if it is not utilised on a daily basis.
Pay particular attention to educating the Committee and members
about your Risk Management Policy and Plan, its purpose and
objectives and their specific responsibilities in ensuring the plan is
fully implemented and adhered to.
You may like to consider the following ways to communicate the
plan:
Include it and other relevant documentation in a committee
member manual and handing it to new committee members
Ensure Risk Management is an agenda point for committee
meetings
Ensure that all club policies are accessible by the members via
the club website
Include risk management information in the club newsletter or
in regular Facebook updates

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Appendix: Risk Priority Matrix Tables

Table 1: Likelihood of Identified Risk Occurring
Rating
A
B
C
D
E

Likelihood of identified risk occurring in the course

of a year
ALMOST CERTAIN: will probably occur, could occur several
times per year
LIKELY: high probability, likely to arise once per year
POSSIBLE: reasonable likelihood that it may arise over a
five-year period
UNLIKELY: plausible, could occur over a five to ten year
period
RARE: very unlikely but not impossible, unlikely over a ten
year period

Table 2: Consequence of Identified Risk Occurring

Ratin
g
A
B
C
D
E

Potential Impact In terms of the objectives of the

organisation
EXTREME: many objectives will not be achieved, or several
severely affected, extensive injuries, hospitalisation, event requiring
investigation and outside assistance (eg,Fire Service, Police)
MAJOR: most objectives threatened or one severely
affected
MODERATE: some objectives affected, considerable efforts
to rectify
MINOR: easily remedied, with some effort the objectives
can be achieved
NEGLIGIBLE: very small impact, rectified by normal
processes

Likely hood

Risk Priority Matrix

A
B
C
D
E

A
Extreme
Extreme
Extreme
Major
Medium

Consequence
B
C
Extreme
Major
Extreme
Major
Major
Major
Major
Medium
Medium
Minor

D
Major
Medium
Medium
Minor
Minor

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E
Medium
Minor
Minor
Minor
Minor

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