Risk management toolkit
Risk management toolkit
Toolkit guides organisations through a five-step process for managing organisational risk. The toolkit is designed to address risk across all areas of operation. It's aimed at national sport organisations, national recreation organisations regional sports trusts, although regional sports organisations will also find it useful.
Introduction
Sport NZ’s Risk Management toolkit guides you through a five-step risk management process for managing organisational risk. The toolkit is designed to address risk across all areas of your operation.
Each step has supporting resources that can be customised to suit your needs.
Who should use the toolkit?
It's aimed at national sport organisations, national recreation organisations regional sports trusts, although regional sports organisations will also find it useful.
What is risk?
Risk is defined as ‘the chance of something happening that will have an impact on objectives’ (Standards New Zealand 2004). Risks, if they are realised, may prevent you from achieving a daily task, a project, or your organisation’s objectives and goals. Risk is inherent in everything we do – though by managing risks you can reduce the chances of serious harm to your organisation and your community.
Risks can have positive outcomes, but for this toolkit we have focused on the risks that have negative outcomes.
What is risk management?
Risk management is a systematic way of identifying, assessing, treating and monitoring risks. Following a systematic process helps organisations to identify likely risks and to make plans to reduce the potential consequences.
Why a risk management process?
The sport and recreation sector is becoming more complex. Many professional administrators now manage sophisticated programmes, high annual turnovers, and legal and compliance issues. At the same time administrators also need to consider the requirements of members, constituents and stakeholders. This increasing complexity exposes organisations in the sector to greater risk and heightens the need for effective risk management.
What are the benefits of a risk management process?
A systematic risk management process will help your organisation to:
- effectively manage assets, events, programmes and activities
- improve the way you meet the needs of members and other stakeholders
- enhance your image and reputation.
Five-step risk management process
Following the instructions in each of the five steps below will help you to develop a comprehensive risk management plan for your organisation.
Each step of the Risk Management Toolkit has resources tailored specifically for the sport and recreation sector. You can download these resources from the website and adapt them to suit your organisation.
Step 1: Develop a risk management policy
In Step 1 you will document how your organisation will support a risk management process. On completing this step you will have a risk management policy.
Step 2: Establish your operating environment
In Step 2 you will identify the external and internal operating environment of your organisation so you can manage risks in your specific environment. On completing this step you will have a document that identifies your organisation's overall operating environment.
Step 3: Assess your risks
In Step 3 you will assess the risks for your organisation based on your operating environment. On completing this step you will have a risk profile of your organisation’s low, medium and high risks.
Step 4: Treat your risks
In Step 4 you will develop an action plan to manage the highest-ranked risks for your organisation. On completing this step you will have an action plan for treating each of your most highly ranked risks, including who is responsible for managing each risk.
Step 5: Monitor and review your risks
In Step 5 you will learn about monitoring and reviewing your progress in managing risk in your organisation. By implementing ongoing monitoring and reviewing you will ensure the risk management process is embedded in your organisation.
Acknowledgments and disclaimer
Sport NZ’s Risk Management Toolkit is based on Standards New Zealand’s Guidelines for Risk Management in Sport and Recreation SNZ HB 8669:2004.
The information in the Risk Management Toolkit has been obtained from a variety of sources. While care has been taken in collecting and presenting the information, it is general by necessity. The Risk Management Toolkit is made available on the basis that the contributing organisations, Sport NZ, and any persons or entities acting for any of them, expressly exclude all liability for damages or loss arising from any use of, or reliance upon, any information in the Risk Management Toolkit.
