Bowls New Zealand Incorporated
CLUB PLAN – RISK MANAGEMENT
(or - What could go wrong? and What should we do about it?)
Risk Management theory and Simple Template for Centre and Club use.Prepared by Bowls New Zealand CDO team.
Reference material - SPARC Organisation –wide Risk Management, 7 steps to effective Risk Management.
Definitions –
What is Risk?
· “chance of possibility of loss or bad consequence.” (Pocket Oxford Dictionary)
· “the chance of something happening that will have an impact on objectives” (AS/NZS 4360:2004 Risk Management)
What is meant by “risk management?”
· “the culture, processes and structures that are directed towards realizing potential opportunities whilst managing adverse effects” (AS/NZ 4360:2004 Risk Management)
· A process to identify risks, set an acceptable level for risk, and take steps to keep residual risk at that level” (SNZ HB 8669:2004 Guidelines for Risk Management in Sport and Recreation)
Simple common questions that should be asked based around - WHAT IF?
· What if we do nothing? What good or bad is likely to occur?
· What if we do something? What good or bad is likely to occur?
· What if we keep doing what we have always done?
Advantages of Implementing Risk ManagementThe advantages of implementing a robust risk management framework include:
· Clubs and Centres will be aware and understand the extent of risk across their organisation,
· Ensuring the organisation will be safely managed,
· Increase the chance of achieving the club’s / Centres goals and reducing the chances of anything going wrong,
· Providing enough time to mitigate against situations that may cause problems
· Enable better informed decision making: and
· Improved performance
5 Key Steps to being a “Risk Aware’ Organisation
1. The Organisation’s Executive/Board acknowledges the need to ‘Manage Risk” (Develop risk objectives – especially defining Roles and responsibilities, Risk management policies, strategies and Risk Management processes)
2. A ‘Risk assessment’ of the organisation is undertaken including Plans, consideration given to external factors affecting the organisation e.g. the club is on Council land, Smokefree Legislation etc, Internal factors including the day to day operation of the organisation and any ‘other’ factor that can or has the potential to affect your organisation.
3. Once the risk has been identified you need to Identify treatment options, Evaluate treatment options, Prepare and implement treatment plans, Analyse and evaluate residual risk
4. Plan, Plan and Plan to minimise risk, accept the risk etc– You may include the ‘risk actions’ in existing plans or have a separate Risk Plan.
5. Test, Monitor, Report and Review. You should have robust and transparent systems, policies and procedures in place to keep you informed at all stages of all aspects of your organisation.
Risk Control Options
There are 4 core ways of controlling risks;
1. Avoid the Risk – If a risk is too big you decide not to proceed with the activity.
2. Reduce the Risk – This may involve designing a new method of doing something or introducing new controls around an existing process.
3. Share a Risk – Means someone else carries some of the risk for you. Examples are hiring specialist trades people to do dangerous work or taking out an Insurance policy.
4. Retain the Risk – You decide that the risk is acceptable.
Pages 29 – 32 of the publication SNZ HB 8669:2004 New Zealand Handbook – Guidelines for Risk Management in Sport and Recreation provide more details about risk treatment options.
Risk Categories for consideration?
· Service Delivery to members and stakeholders/sponsors
· Human Resources/Capability
· Information / Knowledge Management
· Credibility / Image / Reputation
· Board / CEO / Management Time
· Financial Performance (Funding, Sponsorship etc)
· Information Technology (
· Legal / Regulatory (Constitutions, Local Government, Employment legislation etc)
· Opportunities (Missed and Taken)
Risk Impact (Importance – How important is it to us?)
· 5 - Extreme
· 4 - Major
· 3 - Moderate
· 2 - Minor
· 1.- Insignificant
Risk Likelihood Guide (How likely is it to happen?)
Descriptor / Description
5 - Almost Certain / The event could occur in most circumstances, e.g. 80% + chance of occurring in the next year.
4 - Likely / The event will probably occur in most circumstance, e.g. 60 - 79% chance of occurring in the next year
3 - Moderate / The event should occur at some time, e.g. 30 - 59% chance of occurring in the next year
2 - Unlikely / The event could occur at some time, e.g. 5 - 29% chance of occurring in the next year
1 - Rare / The event may occur only in exceptional circumstances, e.g. less than 5% chance of occurring in the next year
Table to Determine the Level of Risk – (Multiply Likelihood X Potential impact)
Likelihood / Potential Impact
1.- Insignificant / 2 - Minor / 3 - Moderate / 4 - Major / 5 - Extreme
5 - Almost Certain / 5 (H) / 10 (H) / 15 (C) / 20 (C) / 25 (C)
4 - Likely / 4 (M) / 8 (H) / 12 (H) / 16 (C) / 20 (C)
3 - Moderate / 3 (L) / 6 (H) / 9 (H) / 12 (C) / 15 (C)
2 - Unlikely / 2 (L) / 4 (L) / 6 (H) / 8 (H) / 10 (C)
1 - Rare / 1 (L) / 2 (L) / 3 (H) / 4 (H) / 5 (H)
It is suggested that ANYTHING that scores over 15 requires Urgent attention
However if the Potential Impact and or Likelihood is high and the risk is on the lower end of the scale – this may also requires attention
Action Guide based on chart above
(C) Critical Risk; Immediate action required (Can’t ignore Must Action)
· Substantive Risk Strategies must be a planned to ‘manage’ the risk. (List actions that can be taken – NOW, before it happens, to prevent it happening or minimize the effect if it does. Who is going to do it, when, how. Does it cost money? If so this needs to be added to the budget)
· Robust and Transparent - Monitoring and Reporting - Must be timely, defined, measured and reported.
(H) High Risk: Attention is needed (keep focused on it)
· Risk Strategies must be a planned to ‘manage and monitor’ the risk. (List actions that can be taken – before it happens, to prevent it happening or minimize the effect if it does. Who is going to do it, when, how. Does it cost money? If so this needs to be added to the budget)
· Robust and Transparent - Monitoring and Reporting - Must be timely, defined, measured and reported.
(M) Medium Risk; Manage by audits and Internal Controls (Put checks and balances in place to monitor)
· Audits and Internal Controls must be a planned to ‘manage’ the risk. (List audits and controls that can be taken and measured – NOW, before it happens, to prevent it happening or minimize the effect if it does. Who is going to do it, when, how. Does it cost money? If so this needs to be added to the budget)
· Robust and Transparent - Monitoring and Reporting - Must be timely, defined, measured and reported.
(L) Low Risk; manage by routine procedures
· Define Policy, Procedures and processes to ‘manage’ the risk. (List actions, delegations etc that can be taken – NOW, before it happens, to prevent it happening or minimize the effect if it does. Who is going to do it, when, how. Does it cost money? If so this needs to be added to the budget)
· Robust and Transparent - Monitoring and Reporting - Must be timely, defined, measured and reported.
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Bowls New Zealand Incorporated
CLUB PLAN – RISK MANAGEMENT
EXAMPLE - WHAT COULD GO WRONG? WHAT SHOULD WE DO ABOUT IT?
WHAT COULD GO WRONG? / HOW BAD WOULD IT BE? / WHAT SHOULD WE DO ABOUT IT? /Area of Operation / Problem / Importance
A. How important is it to us?
Rated 1 to 5,
1 low - 5 high / Likelihood
B. How likely is it to happen?
Rated 1 to 5
1 not very -
5 almost certain / Score
A x B
(max25)
>15 requires urgent attention / Actions
What can we do to prevent it happening at all, or to minimize the effect if it does? / Responsibilities and Timing
Who? What? When?
How Often? Budget?
STEP ONE
AS AN EXECUTIVE/BOARD, ALONE OR WITH OTHER CLUB OFFICIALS, BRAINSTORM THE POSSIBLE PROBLEMS THAT COULD AFFECT THE CLUB’S RUNNING OR EXISTENCE / STEP TWO
RATE EACH PROBLEM ACCORDING TO HOW BAD IT WOULD BE IF IT HAPPENED, AND HOW LIKELY IT IS TO OCCUR, THEN RANK THEM IN DESCENDING PRIORITY ORDER BY SCORE / STEP THREE
LIST ACTIONS THAT CAN BE TAKEN, NOW, BEFORE IT HAPPENS, TO PREVENT IT HAPPENING OR MINIMISE THE EFFECT IF IT DOES.
WHO’S GOING TO DO IT, WHEN, HOW, AND DOES IT COST MONEY WE NEED TO ADD INTO THE BUDGET?
BAR / Possible theft of money from bar takings / 4 / 2 / 8 / Cash audit and stock take / Monthly, Bar Manager and Treasurer
WHOLE CLUB / Fire destroys whole or significant part of club buildings / 5 / 3 / 15 / Arrange Fire Prevention Officer visit to ensure suitable preventive measures are in place and working / Secretary to arrange visit by end July. FPO report to following exec meeting, with costs of each measure. Implement agreed measures by end of August. Build frequency of check on all appliances on due dates into Secretary JD
Suitable Insurance cover to be in place at all times / Secretary to check policy and cover by end July, check cover and premiums, build into Secretary JD to check annually
Volunteer Management / Greenkeeper resigns / 5 / 4 / 20 / Develop and Action a succession plan / Board/executive to develop plan by dd/mm/yy
Administration / Club computer ‘dies’ and data is lost / 5 / 4 / 20 / Computer records are ‘backed up’ weekly and a ‘disaster back up is done monthly / Club secretary to undertake backups according to club policy and stored accordingly
Finance / Sponsorship funds reduce by 20% / 4 / 4 / 16 / Clubs financial plan includes activities to enhance existing sponsorship relationships, investigate alternative revenue streams / Executive/Board annual strategic and operational plans
Membership / Membership numbers drop by 10% / 5 / 4 / 20 / Clubs strategic and operational plans include strategies to retain existing members and have action plans to increase membership / Executive/Board annual strategic and operational plans
Club Events / A player has a heart attack / 5 / 3 / 15 / Club’s Health and Safety Plan to include strategies to ensure the best possible help is given to the player / Board/executive to develop plan by dd/mm/yy
Events are not well patronised / 4 / 4 / 16 / A plan is drawn up to review all tournaments, ensure on and off green activities provide the ‘points of difference’ that make bowlers want to participate / Tournament secretary/manager to develop plans by dd/mm/yy
Actual and potential bowlers are consulted for ideas, and feedback on a regular basis / Tournament secretary/manager to develop a questionnaire and have it completed after every tournament with finding reported to Board/executive.
WHAT COULD GO WRONG? WHAT SHOULD WE DO ABOUT IT?
Area of Operation / Problem / Importance
A. How important is it to us?
Rated 1 to 5,
1 low - 5 high / Likelihood
B. How likely is it to happen?
Rated 1 to 5,
1 not very -
5 almost certain / Score
A x B
(max25)
>15 requires urgent attention / Actions
What can we do to prevent it happening at all, or to minimize the effect if it does? / Responsibilities and Timing
Who? What? When?
How Often? Budget?
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