What is risk management?
Risk Management is the process of systematically identifying, analysing, treating and ultimately reducing or eliminating those risks to an organisation. In many cases, an official, a volunteer or a participant will find they manage risk on a day to day basis simply by applying a degree of common sense.
The Risk Management process can be split into three key categories:
Once risks have been identified, they must then be put through a process of assessment based on the severity of the possible loss and probability of the loss occurring. In many cases this can be relatively simple based on factual data. Where the factual data is not available a Risk Management Plan, compiled in conjunction with expert advice from specialists can assist in the calculation.
Factual data and proven statistics are used as the primary source when making a Risk Management Assessment. Expert opinion and educated are the next step using what information is made available. Completing this exercise is important as it will give organisers of events and decision makers a comprehensive list which can then be prioritised.
There are several theories as how best to quantify risks, which result in numerous different risk formulae, but perhaps the simplest and most widely accepted is:
Rate of Occurrence x Impact = Risk
Once risks have been identified, assessed and prioritised there are four major treatments or steps that can be taken to deal with the risk exposures:
- Avoidance (elimination)
- Reduction (mitigation)
- Retention (acceptance)
- Transfer (buying insurance)
These Risk Management pages will provide you will all the information you require in handling and mitigating your risks including all the forms and certificates available for download.
Should you have any type of query, please contact Richard Rainbow, JLT Sport on +44 (0)20 7528 4094