Week 7 Risk Management (Exam 2)

Question 1

Risk Management

Answer 1

A management strategy to maintain greater
control over the risks. The process of analyzing exposure to risk and determining how to best handle such exposure. Purpose is to reduce the risks while effectively
managing a sport facility

Question 2

A venues duty of care?

Answer 2

provide reasonably safe premises for reasonably foreseeable invitees engaged in reasonably foreseeable behavior.

Question 3

Is there a duty to warn of an “open and obvious dangers” that you cannot reasonably eliminate?

Answer 3

No

Question 4

Developing the Risk Management Plan (3)

Answer 4

D1: Identifying the Risks
D2: Classifying the Risks
D3: Selecting the Treatments

Question 5

D.I.M. Process

Answer 5

Developing the Risk Management Plan
Implementing
Managing DIM plan

Question 6

D1: Identifying the Risks

Answer 6

• Each facility has a variety of factors that impact the
probability of various types of losses
• Determine the various risks or losses that may
occur during any given event
• Standard Operating Procedures (SOPs)
• Surveying attendees
• Inspecting facility
• Talking to current employees
• Discussing potential risks with experts
• Additional risks…

Question 7

D2: Classifying the Risks

Answer 7

After the risks or losses have been identified, they
must be classified.
• Quantify the risks (both financial and personal
injury losses) in terms of
• Frequency
      • High
      • Medium
      • Seldom
• Severity/Intensity
      • Catastrophic
      • Critical
      • Moderate
      • Low

Question 8

D3: Selecting the Treatments (4)

Answer 8

Avoidance
Transfer
Retention
Reduction

Question 9

D3: Avoidance

Answer 9

A specific activity should not be started or the activity should be discontinued.

Not an attractive option

Question 10

D3: Transfer

Answer 10

• Shifting of financial responsibility to a third party
• Almost every instance; except
• High(F) & High (S); Medium (F) & High (S)

Insurance
Waivers
Indemnification Clauses

Question 11

Insurance (Transfer–D3)

Answer 11

• Personal liability

* Property

Question 12

Waivers (Transfer–D3)

Answer 12

• a document by which signer gives the right, by contract to sue a service provide for negligence

Question 13

Indemnification Clauses (Transfer–D3)

Answer 13

• “hold harmless agreements” allow the organization to be compensated by the individuals renting the facility or equipment

Question 14

D3: Retention

Answer 14

• Financially responsible for any damages or losses
• For minor injury pay‐outs, first aid treatment,
ambulance service, and other low severity types of
risks
• Insurance deductibles premiums

Question 15

D3: Reduction (3)

Answer 15

• Trying to restrict the risks
• Preventive actions
• Must be utilized in addition to other
treatments

Question 16

Reduction Preventive Actions (4)

Answer 16

Training
Preventative Maintenance
Instructions
Signage

Question 17

Two dimensions of risk classification

Answer 17

Frequency and Significancy

Question 18

Implementing

Answer 18

Communication is critical.
Best way is to include all employees in the development of the risk management plan.
Increase the sense of ownership.
Do it when initially hired.
Training.

Question 19

Managing DIM Plan

Answer 19

Risk manager of safety committee must be selected to motivate and lead.
Must recognize the need for risk management
Improving consumer experience
Need to organizational support