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Spengler chap03

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chapter 3 Risk Management
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Risk Management

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Chapter Objectives

After reading this chapter, you will know the following:

• The foundation of risk management and key elements of the decision-making process

• The essential components of an emergency action plan and a crisis management plan

• The key elements of a lightning safety plan• Management issues for sport facilities and

those with disabilities

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Risk Management

The process of reducing or eliminating the risk of injury and liability associated with recreational facilities or services– Loss prevention: What is the loss of most concern to

the organization, to the insurance company, to society, to the plaintiff’s lawyer, and so on?


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Risk Management (continued)

• Think like a manager.• Think like a risk manager.• Think like an insurance company.• Think like a lawyer.• Think like a jury.

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Process of Managing Risk

• Recognition• Analysis • Action

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• Categories of risk– Health– Safety– Crowd control

• Specific types of hazards– Improperly prepared food (health)– Domestic and international terrorism (safety)– Seating, ticketing, exiting (crowd control)

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Analysis: Risk Identification

• Identify the hazard and type of potential liability:– Slippery floor: Personal injuries– Uneven turf: Personal injuries– Blocked exits: Personal injuries


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Analysis: Risk Identification (continued)

• How do we accomplish this?– Common sense?– Objective sources?

• Standard of care• Industry standards

– Overriding legal concepts?• Negligence, strict liability• Do these complement or supplant industry


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Analysis: Risk Evaluation

• Seriousness of the potential injury: Importance from a legal perspective?

• Probability of an injury occurring• Causation or foreseeability

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• Retention is the response to an evaluation of risks where no action is taken. The situation is kept as is.

• Treatment is the response to an evaluation of risks where some action is taken to reduce the risk.

• Transfer is the response to an evaluation of risks where methods are devised to place the risk of liability on another (e.g., through contractual agreements).

• Avoidance is the response to an evaluation of risks where action is taken to eliminate the risk (e.g., eliminating a program, facility, or service).

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Action: Reducing the Probability of Risk

• Legal devices• Insurance• Transfer of risk• What would a lawyer recommend?• What should the manager do?

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Action: Developing Policiesand Procedures

• Development– Dissemination to every employee or volunteer

involved– Impact of the Internet: Online versions of the

rules (do you disseminate to the whole world or do you limit access?)

• Problem of gathering dust– Communication– Updates


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Action: Developing Policiesand Procedures (continued)

• Standard of care– Development of a standard– Use of court precedents, statutes, industry


• Audits and inspections

• Schedules and timeliness

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Emergency Action Plan (EAP)

• A comprehensive, proactive plan that addresses potential medical emergencies occurring in a sport setting

• Legal and ethical duty in preparation of such plan: Court rulings, statutes, regulations, industry standards

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EAP Issues

• Communication• Emergency training• Location of EMS• Role of first responder• When to dial 911• Documentation• Education and training

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Crisis Management Plan (CMP)

A comprehensive, proactive plan designed to lessen the negative impact on an organization in the event of a crisis.

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Elements of a Crisis Management Plan

• Planning– Planning team– Development of an action plan

• Communication• Postcrisis communication and response

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Lightning Safety Issues

• NATA standards: Six essential components of a lightning safety1. Organizations designate a person with the authority

to remove participants.

2. Weather watcher should be appointed who notifies person with authority to cancel or suspend activity if severe weather becomes dangerous.

3. Monitor lightning.


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Lightning Safety Issues (continued)

4. Structures for seeking shelter from lightning should be built, properly identified, and placed in areas where they can be quickly accessed if needed.

5. Specific criteria for suspending and resuming sport and recreational activities should be implemented, such as flash-to-bang count.

6. Knowledge of CPR and first aid.

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Facilities and the ADA

Title III bars discrimination against disabled individuals in the full and equal enjoyment of the goods, services, facilities, privileges, advantages, or accommodations of any place of public accommodation by any person who owns, leases (or leases to), or operates a place of public accommodation.

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Title III of the ADA: Facility Design

• Reasonable modifications• Facilities designed and constructed for first

occupancy after January 26, 1993, are viewed as new construction and must comply with the ADA's more strict accessibility standards

• Specific percentage of disabled seating in various areas of the stadium

• Line of sight: Disabled must be able to see