Home  |  Members  |  Contact Us | Links
Search: GO
4. PRACTICAL STRATEGIES 

Assume the risk

  • Decide that the risk is minor and do nothing

Reduce the risk             

  • Change people’s behaviour or the environment so that risk is reduced
  • Pre-loss activity example: preparation of contingency plans before a loss occurs

Eliminate/Avoid the risk

  • Fix the problem
  • Remove it or choose not to begin

Transfer the risk

  • Accept the risk - transfer the cost and responsibility to someone else

Control - Post-loss:

  • Keep resulting damages to a minimum
  • Control the contingent consequences
  • Called mitigating loss – required by insurance
  • Examples: Effective administration of third party claims

Contractual Risk Transfer

  • Transfers the risk of a specific activity or project to another party through a contract
  • Waivers, disclaimers, indemnity agreements, hold harmless agreements, work contracts
  • Insurance is a form of contractual risk transfer

Transfer to Insurance

  • Some exposures may be uninsurable
  • Loss of reputation
  • All Insurance policies have exclusions

Policy Exclusions Exist to:

  1. Eliminate uninsurable loss exposures:
    • Those not accidental, or predictable
    • Within the control of the insured
    • Catastrophic
  2. Manage moral and morale hazards
    • Intentional acts
    • Loss caused by undue care and attention
  3. Avoid coverage duplication:
    • Other insurance is available
  4. Eliminate coverage for extreme risks
    • Those requiring special treatment – flood, earthquake
  5. Keep premiums at a reasonable level
    • No policy can or will insure everything
    • Losses may exceed policy limits

Implementation

  1. Assign responsibility and accountability
  2. Allocate required resources
  3. Document (record of decisions and plans)
  4. Establish criteria to measure performance

Strategies

  • Define framework – Risk Management Plan
  • Define it as policy
  • Select Risk Champion
  • Task people to engage
  • Set guidelines and train

Risk Management Should Be:

  • Proportionate: to the risk assessed
  • Accountable: those affected should be advised how and why decisions are made
  • Balanced: between “analysis-paralysis” by over-managing and indecision by not making decisions and taking action
  • Consistent: interpret policies consistently
  • Transparent: open and user-friendly process
  • Targeted: treatments focused on problem

Best Practices

  • Commitment and support from leaders
  • Risk management plan provides roadmap
  • Effective Risk Management Plans
    • Reflect the range of stakeholder perspectives
    • Express the belief in and support of a risk management philosophy and practice
    • State that all personnel are vital in protecting the mission, reputation and assets
  • Policy statement defines the commitment
  • Risk mitigation control system in place
  • Risk Identification/Mitigation
    • Enables decisions about potential risks that risk is either acceptable or requires treatment
    • Minimizes the possibility that risk will go undetected – no surprises
  • Concept: manage risk within acceptable levels
 

SPORT4ONTARIO would like to thank Volunteer Alberta for the information contained in this section.      

LogoVolunteerAlbertaColour.jpg

Other Risk Management Topics:

 

 
Site created November 2007       Disclaimer || Email Us    Last updated February 2, 2012

The SPORT4ONTARIO Network

Our Supporters         

Our Partners

 

         

Our Network  

 

   
   

 

 

 

 

Empowered by Port 80 Solutions