Risk Management for Clubs

  • Risk Management for Clubs Article

Club Governance Trainer Explains Risk Management for Clubs

Article by Warren Tapp

In our experience a lot of Club Boards or Management Committees do not take risk management seriously enough, yet it is one of their key functions in looking after the Club for its members.

We suggest your Board should have a “brainstorming session (not part of the usual Board meeting) where you all think of the many risks the Club has, and list these down. Do not make the mistake that because it has never happened, it won’t. Nobody was prepared for the risk of a pandemic and the economic cost of it

Then rate each identified risk with a score out or 10 for “Probability (how likely that it will happen) and then a score for the same risk out of 10 for “Impact” (the consequences if it did happen). Then multiply the 2 scores to get a score out of 100. You will end up with a ranked list of risks between 1 and 100 and I suggest the Club takes action on the ones above 5o to start with while management takes action on those below 50.

Your Board should get a Risk Management report for all meetings showing risks in colour for 3 categories…. High is Red, Medium is Amber and Low is Green. The next step for the Board is to decide what action to take to reduce these risks so their scores become lower. (You will never eliminate risk but at least minimise it.) Your decision choices are:

1. Stop doing the things that are too risky and will be hard to reduce.

2. Transfer any risks you can by way of insurance (check what policies you have and their amount of cover for the risk).

3. The Board directs management to take steps to reduce the risks. These might be by way of new Policies or Procedures or perhaps training, or some other solution.

In time, the Board should monitor all risks reducing in score and changing colour and, if they do not, then ask why and what else can be done.

Your legal duty is owed to all members and all the staff and all the volunteers as well as the wider community. Act with ongoing care and diligence in managing risk for your Club.

There is training on risk management in our online learning platform at https://clubgovernance.com.au/elearning-platform to assist you and your Board.

Who Needs Club Governance Training?

In our opinion every club and Association across Australia need Club Governance Training.

Governing a Club, Charity or any Not-for-profit is a big responsibility, and it cannot be done by well-meaning volunteers who do not understand their role.

Club Governance Training will;

  1. Board Members will know their responsibilities.
  2. You’ll have more productive Board Meetings.
  3. Help improve your Club’s growth and sustainability.
  4. Your Club will be more legally compliant.

Club Governance has developed an online training program for all Board and Committee members to ensure they know how to do their job.

It is available in 15 modules of about 15 minutes each and covers all the necessary knowledge they must have, based on our 30+ years of assisting organisations like yours around Australia.