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Introduction to Sports Management – Week Four
 Welcome
 Assessment One
 Discussion Forum
 Review Week 3
 Complete Module Two
Eighteen test events, which function as dress rehearsals for each sport, will
commence from March in preparation for the Tokyo Olympics starting July 23.
New facilities for Rock Climbing and Skateboarding need testing
Subject Overview
Module 1
Module 2
Module 3
Module 4
Module 5
Module 6
The Sports Industry
Governance and Risk
Sport Marketing and Media
Sport Tourism and Events
Sport Facilities and Venues
Professionalism and Ethics
Assessment Summary
Assessment
Assessment Type
Length
Due
Weight
1
Reflective Journal –
My Sport Experience
1000 words
End of Week 4 – Sun Mar 14
20%
2
Project Proposal for a
new sport (Report)
1500 words
End of Week 6 – Sun Mar 28
40%
3
Final Report for a new
sport
1500 words
End of Week 12 – Sun May 9
40%
Assessment 2 and 3 are linked – you need to choose create a new sport, or modify an existing
sport, to attract a new market.
Assessment One – Reflective Journal: My Sport Experience
Assessment 1 requires you to reflect on previous experiences you have had in sport as a participant, spectator, coach,
official or volunteer. When sharing your experience think about the emotions you felt, the impact of the sport on you
and other people involved, and any issues or outcomes from the experience that you still think about.
This reflection will help you with Assessment 2 and 3 where you will be creating a new sport or modifying an
existing sport for other people. Consider the following:
 What was your first involvement in sport?
 Who influenced your involvement in sport?
 Did you focus on one sport or try multiple sports?
 Were your sport experiences positive, negative or a combination of both?
 What feelings or emotions did your sport experiences evoke?
 Do you recall any risks or ethical issues from your sport experiences?
Assessment One – Reflective Journal: My Sport Experience
When you have finished your reflection write a paper that addresses the following:
 A brief summary of your introduction to sport
 A sporting experience that has provided positive memories for you
 The factors, conditions or people that contributed to this positive experience
 Any risks, social or ethical issues that influenced this experience
 How this experience shaped your interest in the management of sport today.
Make sure you check the Assessment Brief and the Rubric:
 Content Audience and Purpose 30%
 Personal autonomy, accountability and reflective skill 40%
 Effective Communication 30%
Module Two Topics
1. Corporate Governance
2. Sport Governance
3. Common issues in Sport
This Week:
4. Risk Management defined
5. Risk Categories
6. Risk Management Framework
Module Two Readings
1. Module Two Lecture Slides
2. Sport Australia (2020). Sport Governance Principles. Retrieved
from: https://www.sportaus.gov.au/governance
3. Risk Management Resource: For Recreation and Sport
Organisations.
4. Neale, W.C. (1964). The Peculiar Economics of Professional
Sports, The Quarterly Journal of Economics, 78(1), 1-14.
Discussion Forum: Week 4
Do you think people are attracted to playing sport because of the risks involved, or should we try to
eliminate all risks?
Francesco: In terms of risks in sport or physical activity, risks will always be in play, but we need to
mitigate risks such as cricket, recently adjusted helmets due to Hughes death, the reduction of head high
bouncers. This is where governance would play an integral part and address issues, in this case the
AFL, needs to strengthen the laws on players suffering concussion, particularly on 2nd hit and more.
Ned: I think a certain amount of spectators and players are drawn to risk in sports such as big tackles
and fights, although it is necessary to try and eliminate risks to assist player wellbeing, e.g. NRL
banning the punch and serving out suspensions to anyone involved.
Student Exercise – List the types of risks in sport
Class Activity – Types of Risks
Class Activity – Mick Fanning shark attack
Check out: https://www.youtube.com/watch?v=xrt27dZ7DOA
Sport Governance Principles
Familiarise yourself with the Sport Australia Governance Principles, and
then see if your favourite Australian sport has adopted any of the principles.
Additional information available at:
https://www.sportaus.gov.au/governance
RISK MANAGEMENT
Eliminating Risk?
To eliminate all risks of harm would remove the challenge and fun
associated with most sports and events.
However the Governance Principles outlined by the ASX (#7) and
Sport Australia (#7) strongly reinforce the need to manage risk.
Sport Australia suggests that: to proactively protect the
organisation from harm, the board ensures the organisation has
and maintains robust and systematic processes for managing risk.
We need to find that balance between challenge and harm.
Risk Management defined
The Australian Risk Management Standard (AS/NZS ISO
31000:2009) defines risk as:
“the effect of uncertainty on objectives”
A risk is anything untoward happening that can affect your
organisation’s objectives and operations by creating exposure to
potential loss or damage.
Risk Management is systematically identifying threats (risks) to
your organisation and developing ways to minimise them.
Risk Management is an essential element of governance.
Benefits of a RM Program
A Risk Management program has many benefits:
 Increases the safety of the patrons
 Reduces the losses to the organisation
 Increases effective use of resources
 Serves a deterrent to a lawsuit
 Demonstrates intent to act in a reasonable & prudent manner
 Contributes to the reputation of the organisation
 Significantly enhances the achievement of goals
Risk Management Responsibilities
Larger organisations would have a dedicated Risk Manager
but responsibility for risk needs to be shared throughout the
organisation.
This can be achieved through the following:
 Job descriptions with specific RM responsibilities
 Staff induction
 Staff training
 Regular staff briefings and meetings
 Creation of a RM committee
Risk Management Responsibilities
Smaller organisations including sport clubs and
associations may have a Risk Management committee who
provide guidance and oversight of the RM program.
The committee could be composed of experts in insurance,
law and risk management and also represent various roles
or business units across the organisation, for example
finance, marketing, events and facilities.
Committee members and other volunteers may need to
undertake short training courses, for example online training
for representatives to become COVID-19 Marshalls.
Risk Management Responsibilities
The role of the Risk Manager and Committee is to ensure
that a duty of care is in place at all times.
The duty of care is a moral and legal obligation to ensure the
safety or well-being of others.
The Risk Manager/Committee is taking actions that will
prevent foreseeable risk of injury to people who are directly
affected by, or involved in the sport activity.
While injury is a significant risk in sport can you think of other
risks?
Risks in Sport
 Health and Safety risks including injury
 Marketing risks
 Financial risks
 Environmental risks
 Catering provision risks
 Crowd management risks
 Security risks
 Risks in transport of items/people to and from events
Risks in Sport
Sport has seen some significant disasters over the years:
 Munich Air Disaster 1958 – British Airways Flight 609 crashed
on its third attempt to take off, killing 8 players and 3 staff from
Manchester United FC, 2 journalists and the co-pilot.
 Hillsborough Stadium Disaster 1989 – over-crowding at the FA
Cup semi-final between Liverpool and Nottingham Forrest
resulted in 96 fatalities and 766 injuries.
 USA Gymnastics Disaster 2017 – Dr Larry Nassar, the National
Medical Co-ordinator for USA Gymnastics for nearly 20 years
was sentenced to life imprisonment after 160 female gymnasts
reported him for sexual abuse.
Risk Categories
From a legal perspective risk is about exposure to loss and
can be categorised into one of four general areas:
1. Public liability caused by negligence
2. Public liability excluding negligence
3. Business operations
4. Property exposures
Note that the loss to the organisation is NOT ALWAYS
financial; $$$ are used as a measuring tool. There could be
reputational loss for example.
Think broadly about the loss – economic, social, environmental
– the triple bottom line.
1. Public liability caused by negligence
Failure on the part of the owner/operator to manage an
organisation or event in a reasonably prudent and careful manner,
and the failure results in damage to the plaintiff.
Whether or not negligence has occurred is a matter of satisfying
four questions related to the duty of care:
1. Did the defendant (i.e. the person being sued) owe the
plaintiff (i.e. the person injured) a duty of care?
2. Did the defendant breach their duty of care?
3. Did the plaintiff suffer an injury or other damage?
4. Was the injury or damage caused as a result of the breach of
the duty of care?
2. Public liability excluding negligence
Circumstances in which a person causes harm to employees,
patrons or volunteers in ways other than negligence, for example:
 Professional malpractice
 Libel, slander, and false arrest or imprisonment
 Invasion or breach of privacy (eg illegally searching of patrons)
 Assault/ battery (eg touching or verbally abusing patrons)
 Sexual Harassment
 Violation of liquor laws
 Product Liability (eg equipment used or sale of food)
 Other exposures include contractual liability, natural hazards,
advertiser’s liability, and discrimination or civil liberty violations.
Tort Law provides an avenue for people to be compensated for
damages caused by these injurious situations.
3. Business Operations
Business Operations refers to knowing and adhering to appropriate business
practices and trying to avoid:
 Business interruptions
 Employee illness
 Theft
 Embezzlement
 Contract disputes
These risks can be a reflection of the culture at the organisation, the leadership
and the employment and management practices.
4. Property Exposures
This category refers to eliminating or reducing risk associated
with facilities, equipment and grounds as a result of:
 Fire
 Theft
 Vandalism, terrorism and civil disobedience
 Natural disasters including flood and storms.
Significant resources are allocated to fencing, barricades,
CCTV, access control, security and alarm systems.
Risk Management Framework
The Australian Risk Management
Standard (AS/NZS ISO 31000:2009)
refers to the framework (right) and
this framework has been adopted by
the recreation and sport industry.
The framework features in the book
Risk Management Resource for
Recreation and Sport Organisations,
published by the Office for Recreation
and Sport (SA Government) in 2016
and available in Module Two.
Class Activity – Mick Fanning shark attack
Check out: https://www.youtube.com/watch?v=xrt27dZ7DOA
Class Activity – what happens next?
Check out: https://www.youtube.com/watch?v=xrt27dZ7DOA
Student Exercise – What strategies were in place to minimise risk?
Risk Management Framework
The following slides will explore the framework in more detail:
1. Establishing the context
2. Risk Identification
3. Risk Analysis
4. Risk Evaluation
5. Risk Treatment
1. Establishing the Context
Step 1 involves thinking about your sport organisation, its size and
reach, its goals and objectives, and its culture and values.
 A local, community sports club will have different risks to a
professional sports team.
 A state association will have different risks to a national or
international association.
 A sport that is played indoors will have different risks to a sport
played at the beach or in the snow.
 Managing a sports facility or a sports event will have some
common risks but also risks that are specific to that facility or event.
2. Risk Identification
Step 2 requires investigation into all aspects of the organisation to
determine what risks might affect the organisation.
Risk identification requires the application of a systematic process to
understand what could happen, how, when, and why.
Checklists can assist this process and can be obtained from:
 The web
 State or National sporting associations
 Insurance companies
 Risk Management resources/industry forums
2. Risk Identification
Comprehensive Risk Audit available from: https://sportscommunity.com.au/club-member/riskmanagement-and-insurance/risk-management-checklist/
Match Day Checklist available from: http://www.aflcommunityclub.com.au/index.php?id=215
2. Risk Identification
The risk audit or inventory will identify multiple risks and
they can then be grouped into similar categories.
Additional information will come from:
 Physical site inspections
 Business Plan reviews
 Interviews or surveys of people who experienced the risk
 Interviews with relevant personnel (eg sport trainers)
 Analysis of medical records
3. Risk Analysis
Step 3, Risk Analysis is concerned with developing an
understanding of each risk, its consequences, and the
likelihood of those consequences.
Consequence refers to severity – the degree of loss
resulting from the occurrence. This is often measured on
a scale from 1 to 5 – insignificant, minor, moderate, major,
catastrophic.
Likelihood refers to frequency – how often the risk could
occur. This is also measured on a scale of 1 to 5 – rare,
unlikely, possible, likely, almost certain.
3. Risk Analysis
This information can then be displayed as a table:
https://sielearning.tafensw.edu.au/MBA/9791L/9791/9791L/images/Risk%20Register_wi.gif
3. Risk Analysis
or the information can be displayed as a matrix:
Office for Recreation and Sport (2016)
4. Risk Evaluation
Risk Evaluation involves making a decision about the level
of risk and the priority for attention through the application of
the criteria developed when the context was established.
More information or research may be required – people do
have different levels of risk aversion – some are more
inclined to take risks than others, or turn a blind eye.
Step 4 requires agreement to be reached by the key
decision-makers before progressing to Step 5.
5. Risk Treatment
Organisations have four options to treat the risk:
A. Avoidance – don’t do the risky activity
B. Transfer – give the impact of the risk to someone else
C. Acceptance/Retention – accept the risk, retain the
activity and ignore the affect of the risk
D. Reduction – limit the damage caused or chance of the
risk affecting you
5A. Avoidance
Avoiding the risk means avoiding or abandoning
activities that have a loss potential that is too great
(catastrophic or major) and non-essential to the mission
of the organisation.
Taking this step could significantly alter the activity, for
example removing fast bowling from cricket or tackling
from football.
Making the decision to cancel a junior sports carnival due
to extreme heat however would be a sensible decision,
given the duty of care owed to the participants and the
likelihood that the organisation is focused on fun.
5B. Transfer
Transfer involves shifting the loss to another person or entity by:
 Insurance. Insurance is an excellent way to control risk.
 Use of waivers or releases. Contracts that relinquish the right of
patrons to sue for ordinary negligence.
 Independent Contractor. A person or business that agrees to
perform a specific job for the organisation.
 Indemnity Clauses. Agreements that hold owners/landlords
harmless for any negligent acts or omissions by rental groups or
independent contractors.
 Contributory negligence laws. The law acknowledges that
certain activities are inherently dangerous and the participant
accepts some of the burden of the loss should it occur.
5C. Acceptance or Retention
Acceptance or retention of the risk suggests that the activity
is critical to the sport or organisation, or the likelihood of it
occurring is rare.
In this case the risk is retained and the organisation
prepares for potential loss through budgeting, deductibles
or self-insurance.
Note that some situations or activities are inconsequential,
uninsurable, non-transferable, or the cost of insurance is
prohibitive.
5D. Reduction
Reducing the damage caused by the risk, or loss control, is most
effective when performed in conjunction with (b) transfer and (c)
retention. Practices that will reduce the damage/loss include:
 hiring qualified personnel
 educating and training them effectively
 awareness of stress and work/life balance
 selecting appropriate venues
 meeting local, state, regional and federal laws and codes
 knowing your legal obligations and your patrons legal rights
 implementing standard operating procedures
 regular scheduled inspections of assets (facilities/machinery)
 adequate security processes (events, facilities, IT)
Insurance
Insurance is a:
 Way of transferring the financial impact of a risk eventuating
 A cash management tool and not a risk management tool.
Always consult with an insurance advisor to determine suitable
coverage, deductibles, policy terms and prospective carriers.
Remember that not all risk is financial and duty of care cannot
be transferred – you cannot insure against criminal charges
and jail time!
Common types of Insurance
Type of insurance
What it covers
Public liability
provides indemnity for damages caused by an accident
Player accident insurance
specific cover for those who play and are injured
Product liability
provides indemnity for damages caused by products sold
Defamation insurance
loss of reputation due to someone publishing or otherwise
distributing defamatory material
Professional indemnity
insurance
provides indemnity for a breach of professional duty
Directors and officers
insurance
provides indemnity for office holders/board members who may be
sued by the organisation for breach of their duties
Association liability insurance
provides indemnity for the organisation itself
Workers compensation
insurance
provides payment to employees if they are injured at work or
become sick due to their work
Property insurance
covers a wide range of incidents and perils that may damage
property
Risk Management Implementation
Risk management never ends – it is a cycle.
Implement, monitor and review the strategies that have been
selected for each risk.
Integrate the selected strategies into the ongoing operations
of the sport, facility or event, the recruitment and training
programs for employees, and the culture of the organisation.
References
ASX Corporate Governance Council (2019). Corporate Governance Principles and
Recommendations 4th Edition. Retrieved from:
https://www.asx.com.au/documents/regulation/cgc-principles-and-recommendations-fourthedn.pdf
Office for Recreation and Sport (2016) Risk Management Resource for Recreation and Sport
Organisations, South Australian Government.
Sport Australia (2020). Sport Governance Principles. Retrieved from:
https://www.sportaus.gov.au/governance

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