Risk Management For Sport & Recreation

A risk management
framework for the

sport and recreation
industry
O FFICE SPO RT & RECREATIO N TASMAN IA April 1999
Office of
Sport and Recreation
Tasmania
A risk management
framework for the
sport and recreation
industry
R I S K M A N A G E M E N T F R A M E W O R K F O R S P O R T A N D R E C R E A T I O N
O F F I C E O F S P O R T & R E C R E A T I O N T A S M A N I A
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Acknowledgements
Project coordinated by Nic Deka, Office of Sport
and Recreation, Tasmania
Edited by Chris Viney, Pavlovs Dog
Layout and Printing by Digital Ink
Feedback
Any comments or enquiries are welcome and should be directed to:
The Office of Sport & Recreation
PO Box 957
Hobart 7001
Phone: 03 6230 8312
Fax: 03 6230 8333
Email: sportrec@osr.tas.gov.au
Beware!
This resource is intended as a guide to assist people in the sport and recreation industry with
risk management issues. It is a resource that requires interpretation in parts for rational and
intelligent application.
It does not purport to provide legal advice on the contrary it is suggested that matters requiring
legal interpretation be referred to a solicitor.
Although care has been taken in the preparation of the information and appropriate professional
advice sought where necessary, the Office of Sport & Recreation and its staff accept no responsibility
for errors, inaccuracies, or omissions that may be identified.
Office of Sport & Recreation 1999
The contents of this resource are copyright. Except as permitted under the Copyright Act, no part
may be reproduced by any process, or stored in any electronic form whatsoever without the specific
written permission of the Office of Sport & Recreation. Please note that some specific sections are
also copyright to other sources which have been duly acknowledged.
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CONTENTS
1 Introduction
2 The risk management process
3 Implementing risk management
4 Risk and safety audits
5 Sport, recreation and the law
6 Legislation and industry standards
7 Insurance
8 Resources and information
9 Case studies
10 Useful info
11 Glossary
12 References
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INTRODUCTION
Overview
Over the last two decades, sport and recreation have changed. What we do in our spare time is
now recognised as a major industry sector business, sport and recreation are inextricably linked.
There has been a shift away from traditional sport with the emergence of many non-traditional
sports and recreations. There are now many more opportunities for business and employment,
as well as participation in sport and recreation.
A companion of opportunity is usually risk. Changes in our society and in sport and recreation
have provided opportunity, and also an increased exposure to risk which must be understood
and managed.
Risk will always be part of our existence and is certainly an integral part of sport and recreation.
As individuals and as a society we continually manage risk sometimes consciously, often without
realising it, but rarely systematically. Once, the management of risk was driven by self preservation
and a moral duty of care for others. Now this has been overshadowed by more powerful legal and
economic imperatives.
The systematic management of risk is now refined as a modern management tool to cope with an
increasingly litigious environment. As the line between business and pleasure becomes increasingly
blurred; as sport moves into the business arena; and as business thinking is now generally applied to
sport and recreation operations, the sport and recreation industry must look closely at its risk
management practices.
Risk management is a prominent issue and has been the subject of many forums, papers, and reports.
The message from all is clear. Manage your risks!
What perhaps has not been so clear is how this should be done.
This framework aims to achieve the following:
Provide a simple and unbiased explanation of risk management rationale and process
Counter the intimidation that many feel about risk management
Inspire confidence in tackling risk management issues
A good deal of risk management is common sense. The complexity for sport and recreation lies
in the astounding diversity of situations, organisations, and activities to which it may be applied,
and the human factors associated with interpretation and implementation.
Implicit in the preparation of this framework is an understanding of the limitations in terms
of expertise and resources that many sport and recreation organisations might face in tackling
risk management.
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What is risk?
What one person regards as a risk, another may not. To this extent at least risk is defined by
individual perception. The Australian Standard (AS/NZS 4630 - 1995) defines risk as:
the chance of something happening which will impact upon objectives*. It is measured in terms of
consequence and likelihood.
In other words:
What untoward things can happen?
What is the likelihood of them happening?
What will be the consequences if they do happen?
* Essential to understanding the AS/NZ 4630 definition is understanding what it is we mean by objectives. This is perhaps
best explained as freedom from loss, harm, or liabilities.
What risks do sport and recreation organisations face?
Sport and recreation organisations can be exposed to a wide range of risks. All too often though
we only think of and respond to the more obvious risks, such as those that may cause injury to
participants. These obvious risks may well account for most of an organisations risk exposure,
but this does not mean that some of the less obvious risks cannot be just as costly.
Increasingly organisations must consider a more complex range of risks such as those arising from
legal and commercial relationships, adverse natural events, those that may result in financial losses,
and even those that may cause loss of reputation or bad publicity.
The risks an organisation is exposed to will depend upon many factors, but generally the larger
the organisation, and the more activities it is involved in, the more risks it will face.
Most sport and recreation organisations already manage risks. Some well, others not so well.
The challenge we face in a rapidly changing world is to ensure our risk management is effective,
and keeps pace with change.
What is meant by risk management?
It may not be possible to have a risk free environment, but it is possible to manage risk. In other
words avoid, reduce, or transfer it.
To the extent of the obvious at least, as individuals we manage risk all the time, sometimes
consciously, often intuitively. (For example, parents may recognise the hazards and the subsequent
risk of injury to young children at home. They place latches on doors, barricade doorways, put
medicines out of reach, and attend first aid classes.) We may not deliberately apply a risk
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management process but none the less we have applied a process of identifying, evaluating, and
controlling. This process relies on our experience, skills, knowledge, and judgement, and our ability to
apply these qualities to problem solving and decision making.
As individuals and private citizens we can afford to accept the vagaries of intuitive risk management.
Organisations and those with a legal responsibility for others cannot.
Risk management for the latter requires a systematic and rational approach. It requires:
Forward thinking Anticipating risks and preparing for them
Lateral thinking: Searching for new and better solutions
Responsible thinking Risk management rather than risky management
Balanced thinking Recognising the economic realities of risk reduction, and striking a
reasonable balance between costs and benefits.
What are some benefits of good risk management?
Organisations applying sensible risk management can expect many benefits. Some may be:
Reduced likelihood of undesirable and costly surprises
Improved quality of the experience the organisation offers
Better strategic outcomes
Improved prospects for viability of the organisation
Better protection of assets managed by an organisation
Possible reductions in insurance premiums
A more confident and willing base of administrators, officials and volunteers
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The concept of risk
A rational approach to risk management is only possible if we first understand some of the human
factors involved, and the philosophy, ethics, and perceptions that underpin risk in our society.
Risk is ubiquitous perfect safety is unattainable. We live in an environment of ambient risk and do
not consciously perceive risk until it reaches a level that prompts our concern.
Depending on our cultural perspective, knowledge, skills, and experience, we perceive and define risk
differently.
The accepted definition of mathematical uncertainty may be incomprehensible to many, but
everyone is able to identify obvious risks in a commonsense way. For example, when a batsman ducks
to avoid a bouncer, he does not think about mathematical probabilities and variation from the norm,
he thinks Ill get hurt if Im hit.
We manage risks continuously
sometimes consciously, but often
intuitively, as in the example above.
The limitation of intuitive risk
management is that we tend not to
consider the less obvious. What we
now call risk management is an
endeavour to apply a systematic and
rational approach to controlling risk.
We perhaps only consider the less
obvious when we have something to
gain. Most people entering a lottery
think they have a chance of winning a
fortune, yet would consider their
chance of a substantially more
probable accident as too remote to
contemplate.
When we have something to lose, our perception, and the level of risk we accept also changes
depending on exactly what we might lose. Our life? $5? $50000? A finger? Time? Friends?
Reputation?
Our willingness to accept risk also varies depending on whether exposure to the risk is voluntary or
imposed. Generally people will accept higher levels of risk if they are exposed through choice. Risk
may also be personal or societal. We will often tolerate events affecting just one person more readily
than those that could affect many.
Even more complexity is introduced to how we perceive risk and the level that we accept by the fact
that we are inconsistent in our decisions. For example, we accept the risk of driving a car but may
refuse to play basketball in a sports stadium with an asbestos roof.
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With risk comes opportunity, benefits, and reward. We must accept a certain level of risk to gain the
enjoyment or satisfaction derived from participation or winning. A balance must be struck. The level
of risk accepted is determined by the individual and influenced by their tendency toward foolishness
or prudence.
In many outdoor recreation pursuits there are great rewards attached to risk exposure. A balance
however is struck between real and perceived risk. Those with little knowledge of rock climbing
immediately perceive it as a dangerous activity. In fact, through the appropriate application of their
skill and awareness, experienced rock climbers can reduce the real risk to make the activity much
safer than playing contact sports. Awareness is often our most valuable defence against risk;
distraction our greatest enemy.
Risk and safety are sides of the same coin. Risk reduction increased safety costs money. Another
balance must be struck. It is obviously foolish to spend vast sums of money on a negligible reduction
in risk, or to strive for unrealistic levels of risk.
We must also understand the great diversity of risk. Some are frequent, some foreseeable, others rare,
or unforeseeable. In this respect history is our greatest teacher. Those with a good knowledge of past
events will usually be better prepared to manage risk.
In the end, we must appreciate that there is no easy solution to determining acceptable risk.
Inevitably, decisions will have to be made based on the best information and knowledge available at a
particular point in time.
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THE RISK MANAGEMENT
PROCESS
Process summary
The generic risk management process is neither innovative nor complicated. Rather it is a logical
process that can be applied to any activity, asset, project, or program.
The process, described in figure 2, involves the following sequence of steps:
Define the scope of application
Decide what you are applying the process to, and what outcomes you expect.
Establish and understand the context
The risks to which an organisation is exposed, and how they are evaluated and treated, must be
viewed in context with the organisations social, legal, and economic environments, its aims and
capabilities, and the risk profile of the activity for which the organisation exists. Importantly, this
step provides a rationale for the evaluation of risks in terms of what may, or may not, be acceptable
to the organisation.
Identify the risks
A thorough approach to the identification of risks involves three steps:
Identify the sources of risk
Identify what could be affected
Define the risk
It is also important to consider the factors that may increase or decrease likelihood and consequences
of the event.
Evaluate the risks
The first step of evaluation is analysis. This is based on likelihood and consequences.
How often is an event likely to happen?
What will the severity of the consequences be?
The answers to these questions will indicate the level of risk that exists.
The second step is to assess this against the established context to determine:
Is the risk acceptable or unacceptable?
Obviously unacceptable risks should be treated. Evaluation should also reveal a priority for
management and indicate the need for specialist advice.
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Treat the risks
Risk treatment options may include avoiding, reducing, transferring, financing or simply accepting
the risk. Once the best option has been selected, a normal planning process should be adopted to
guide implementation.
Implementation
Transferring theory into action tends not to happen automatically. On-going commitment from those
delegated risk management responsibilities will be necessary.
Monitor and review
Sport and recreation organisations exist in a dynamic environment. Monitoring and periodic review
are essential to an effective risk management program. To this end it is important to document all
stages of the risk management process.
Establish
context
Identify
risks
Evaluate
risks
Treat
risks
Accept Avoid Reduce Transfer Finance
Consider
consequences
Consider
likelihood
Determine what is at
risk and effect
Determine sources
of risk
What is the process
being applied to?
M O N IT O R A N D R E V I E W
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Establishing and understanding the context
Risk is relative before we can sensibly deal with risk, we must first understand the context in which
it exists. This is particularly critical to our rational evaluation of risk in terms of what may, or may not
be acceptable. Rather than assume an understanding of the context in which risk exists, it is often
wise to deliberately establish the context so that the parameters for dealing with risk are clear.
Context may be established by considering:
The external influences on the organisation
The organisation and its operations
The ri sk profi l e of the acti vi ty for whi ch the
organisation exists
External influences
External influences are those that prevail in the wider
environment, and are generally beyond an organisations
control. These influences are broadly based on community
attitudes, tolerance, and demands which are constantly
shifting. The trends in our society, particularly in legal and
economic terms, create the big picture context in which
risk should be viewed. Some of the trends to consider in
establishing this context are:
There is a greater public awareness of legal rights which has
increased the exposure of sport and recreation organisations
to litigation.
There is a greater tendency for people to accept less responsibility for their own actions and to
seek to blame others for their misfortune.
Despite efforts to the contrary, the law is increasingly being applied to sport. Competitors
hitting out in the heat of the moment are now as likely to find themselves in court answering
assault charges as in front of their sports tribunal. The law is also being called upon to arbitrate
in disputes between competitors and sport administrators, clubs and tribunals.
The diminishing halo effect pertaining to non-profit organisations. Such community service
organisations once had some immunity from adverse actions in the past, but it would be most
unwise for any group to rely on this effect for protection now.
A tightening economy has resulted in a wider application of the user pays principle. With this
has come increased expectations of the level of service provided.
A commercial focus on the management of sport and recreation facilities has seen an increase
in charges as owners/managers seek to break even or make a profit.
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There is more
competition for
sponsorship, and business
has greater expectations
on the returns.
The emergence of sport
and recreation as a
significant business sector,
and the wider application
of business principles to
the management of sport,
has increased the
complexity of the task for sport and recreation administrators.
The increasing complexity of todays world means that sport and recreation volunteers require
a higher level of expertise and training, and are harder to recruit and keep.
Advances in information technology and communication systems has improved access to
information but created an information overload environment.
With more opportunities to participate in a wider range of activities, organisations are being
introduced to the realities of a competitive market place.
There is an increasing number of casual participants who want the opportunity to participate,
but do not wish to make any long term commitment to the sport.
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The organisation and its operations
Understanding the organisation, its structure, membership, goals, activities and method of operation is
also important in establishing the context in which we should view risk. Consider the following
questions:
What statutory requirements must the organisation meet?
It is perhaps more sensible to first define the activities the organisation is involved in, as this will
determine the statutory framework within which the organisation must operate. This framework may
include a range of federal and state laws. Breaches of legislation usually indicate a failure to manage
risk appropriately.
What standards exist that apply to the organisations operations?
Standards such as national uniform rules, codes of practice, common practice, National Junior Sports
Policy, affiliation requirements, national insurance schemes, and coach accreditation provide a
benchmark for determining a reasonable standard of care.
What critical relationships does the organisation have?
It is important for organisations to recognise the relationships they may have established with other
parties that are necessary for them to operate. Examples may include councils who provide the
facilities that are used, or an association that creates the competition roster.
What are the goals of the organisation?
Consider a soccer club. Its goals will usually be wider than simply playing soccer and may include
providing entertainment and making a profit. The management of risk must be careful not to
compromise the organisations ability to achieve its goals.
Who is involved with the organisation?
The roles and expectations of players, committee members, directors, employees, sponsors, spectators,
coaches, families of players, affiliated clubs and associations must all be considered.
What are the capabilities of the organisation?
Strategies to treat risk must be kept in context with an organisations ability to provide the necessary
human, physical, and financial resources.
What strategies already exist for managing risk?
Most organisations will already have policies, rules, procedures and insurance covers which must be
recognised and considered in the risk management process.
What is the nature of the organisations activity?
There are obviously more hazards associated with some activities than others. Most would agree that
there are few hazards associated with croquet, and significant hazards associated with bobsledding.
An awareness of the hazards associated with an activity, and an appreciation of the level of risk that
most participants willingly accept, is essential to enable us to rationalise our risk management and not
strive for risk control beyond the expectations of participants.
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Risk identification
Identification requires a mix of knowledge,
experience, lateral thinking, and pessimism. It
is necessary to look beyond the familiar and is
a matter of considering:
What are the possible sources of risk?
What is at risk?
What are the effects or consequences?
The fundamental differences between sports
and recreations, and the variance in their size,
structure, and operation present a unique set of risks for
each organisation and make it difficult to provide a comprehensive
template of risks. However the prompts listed below offer a good starting point for most
organisations in identifying the risks to which they may be exposed.
What are the possible What is at What will the effect
sources of risk? risk? or consequences be?
Relationships People injury
com m ercial players death
legal m anagem ent dam age
financial officials / referees loss
political spectators
sponsors
Human Factors public
health
hum an error Assets
negligence structures
anti-social behaviour grounds
crim inal activities vehicles
equipm ent
N atural Events chattels
fire environm ent
adverse clim atic conditions finances
verm in / insects
earthquake Intangibles
good w ill
Equipment / Technology reputation
design fault
m is-use
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Defining the risk
It is important to clearly define each risk to which the organisation is exposed to support the risk
management process. This involves matching the source of risk with what is at risk, and what the
effect might be. For example, the Parks and Recreation Department of a council in identifying
possible risks may consider:
Possible source of risk
Rabbits digging holes on a soccer pitch
What is at risk?
People (players, referees, council management)
Assets (finances)
Intangibles (reputation)
What will the effect be?
Damage
Injury
Loss
Three of the risks defined could be:
There is a risk that players could be injured by tripping in a rabbit hole.
There is a risk that litigation against the council (and subsequent financial loss) could result if
a player is injured.
There is a risk that the councils reputation will suffer if the rabbit problem is not managed.
With the exception of those risks that may be considered fanciful, all risks that are defined should be
documented in a format that allows evaluation and treatment to be noted. This is not only useful for
future reference, but can also be used to demonstrate sound risk management if called upon to do so.
Some consideration of the factors that may increase or decrease the likelihood of an event such as
those mentioned above is inevitable in the identification process. It is important to note these points
for consideration in the evaluation and treatment of the risk.
Ways to help identify risks
Risk identification can be helped by:
Drawing on expertise from within the organisation
Asking the state or national sporting organisation for information
Drawing on expertise from outside the organisation such as the Office of Sport and
Recreation, local government, or similar organisations to your own
Using relevant checklists and audit processes
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Risk evaluation
Risk evaluation is an analysis to determine the level of risk, and an assessment to decide whether it is
acceptable or unacceptable. Analysis is based on likelihood and possible consequences. For each
defined risk decide:
How frequently will it occur?
What will the consequences be?
It is important to answer these questions in the context of the activity, the organisation, any existing
controls, or other factors which may modify the consequences.
The three methods generally used to determine the level of risk are qualitative, quantitative, and
semi-quantitative.
Qualitative
The easiest and most commonly used is the qualitative method where knowledge, experience, and
anecdotal evidence produce intuitive decisions about the probable level of risk. Obviously this
method has limitations, but it is useful to indicate which risks may be disregarded, those that require
further attention, and to attach some order of priority. For many non-profit organisations this will be
the most appropriate method of evaluation.
The following table provides a simple system for qualitative analysis.
Consequences
catastrophic high moderate low negligible
Likelihood
almost certain very high very high high significant m oderate
likely very high high significant m oderate low
possible high significant m oderate low low
rare significant m oderate low low low
The priority for action would correspond with the level of risk indicated.
Adapted from table D3 AS/NZS 4360:1995
Quantitative
Quantitative analysis applies a numerical value rather than a descriptive word to the level of risk and
is dependant upon the availability of accurate data quantifying probability, frequency, and exposure.
An example is accident/injury statistics.
Although there have been many academic studies of risk in sport and recreation, the approach has
not been systematic, and appropriate or relevant information is only available for some activities.
The Australian Sports Commission (Sportsafe) and the Outdoor Recreation Council of Australia are
trying to establish injury databases for their sectors. These initiatives could provide better statistical
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data on accidents and injuries for many activities
which may allow a quantitative approach to be
taken for the analysis of accident/injury risks.
Semi-Quantitative
This method endeavours to combine
the qualitative and quantitative
approaches by replacing descriptive
words with numbers. It can potentially
provide a more accurate indication of
priorities than the qualitative method.
Is the risk acceptable or unacceptable?
Whether the level of risk is acceptable to the organisation can
only be answered after careful consideration of the context.
This decision will probably be qualitative. The quality of the
decision will depend on the knowledge, skill, and experience of
the decision makers. Obviously, if a risk is evaluated to be
unacceptable, then appropriate action will be necessary.
In evaluating risks, we must guard against bias and inconsistency. To counter this basic criteria can
be established. A simple way to approach this is to define what is unacceptable in terms of
consequences or frequency. For example:
The following consequences are unacceptable.
Injuries requiring hospitalisation.
Financial loss exceeding $1000 for one occurrence.
Significant drop in participation. (define significant)
Legal proceedings against the organisation.
In terms of likelihood the following are unacceptable.
Frequent minor injuries. (define frequent and minor)
Events which frequently interrupt the organisations activities. (define frequent)
Frequent small financial losses. (define frequent and small)
It is likely that many sport and recreation organisations would find quantitative and semi-quantitative
analysis difficult because of access to/availability of numerical data, availability of expertise to
interpret data, and the time that such analysis demands.
In the absence of quantitative data, for most non-profit organisations qualitative analysis and
evaluation will be sufficient to indicate those risks that will require treatment, management priorities
and the necessity to seek specialist advice.
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Risk treatment
The options for treatment of unacceptable risks must be considered in context. Treatment should be
appropriate to the significance of the risk, and the cost of treatment commensurate with the
potential benefits. Essentially there are five treatment options:
Avoid the risk
Reduce the risk
Transfer the risk
Finance the risk
Retain the risk
One or more options may be used to treat the same risk. The list above provides a rough hierarchy
with those options listed first being preferred. The flow chart below illustrates a process by which
options can be considered.
Risk is identified
and evaluated
Can the risk
be avoided?
Is the risk
acceptable?
Can the risk
be reduced?
Transfer the
risk
No
risk
Risk
avoidance
Accept the
risk
Finance the
risk
Risk
reduction
NO
YES
YES
NO
NO
NO
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YES
YES
YES NO
NO
Is there
a risk?
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Avoid the risk
The organisation may avoid the risk completely by consciously not entering into the activity,
program, or project. For example, a sports centre may decide not to provide trampolines. Obviously
this may not be a satisfactory solution for a gymnastics club that regards the trampoline as an
essential piece of equipment.
Reduce the risk
It may be possible for a control, or range of controls, to be introduced to reduce the risk to an
acceptable level. Such controls will often already be accepted as good or common practice by
progressive organisations. It is sensibly recommended that engineering solutions to modify equipment
or the environment should be considered before those that involve modifying human behaviour such
as administrative solutions and the use of personal protective equipment.
Continuing with the trampoline example above, a gymnastics club may use the hierarchy to reduce
the risk of falls from a trampoline by:
1. Sinking the trampoline into the floor so surfaces are level (engineering)
2. Adopting a rule that all trampoline work is supervised (administrative)
3. Providing a suitable first aid kit (administrative)
4. Preparing an emergency plan for injuries (administrative)
5. Installing a safety harness system (personal protective equipment)
Such controls may not prevent an event from occurring but they can reduce the consequences or
prevent them from escalating. In particular controls such as 3 and 4 that focus on the organisations
preparedness for an event, and its ability to respond and recover, should not be under estimated as
effective control measures.
Care must be taken to ensure that all controls, but particularly those that rely on behaviour
modification, are effectively communicated to all those who could be affected.
The expertise and quality of committee members, directors, coaches, and officials is also a critical
factor in the success of risk reduction solutions.
Transfer the risk
The mechanism for the transfer of risk is generally a document with some legal standing.
Predominantly this will be an insurance contract, but other forms include leases, the contracting of
certain expertise, disclaimers for participants, and warning signs.
Insurance is normally an important part of any risk management program but is not a substitute for
other more appropriate treatments which provide for safety. It should be regarded as the last option
for risk management.
When insurance contracts are entered into, care must be taken to ensure that the insurance is
appropriate for the organisation and its activities and provides suitable cover for all areas of concern.
Many organisations do not have a good understanding of insurance. If this is the case, the expertise of
a good quality broker is recommended to assist the organisation define its insurance needs and
negotiate appropriate covers.
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Insurance companies are now looking far more critically at the risks they insure, and refusing covers
or setting extraordinary premiums for those considered to be poor risks. The good news is that those
that have effective risk management in place are now more likely to be rewarded with lower
premiums.
Disclaimers or similar forms are now common in those sports and recreational activities that may be
considered to have a moderate or high risk. The purpose of such forms is to waive or limit liability for
negligence of the provider, coach, instructor etc. In effect, such forms principally serve as a formal
recognition of the risks attached to the activity by the participant, and in this way may reduce
liability. Current legal advice suggests it would be foolish to rely on such forms alone for the defence
of a damages claim.
Finance the risk
Risk financing is a form of self insurance where the frequency and likely cost of an event are
estimated and a financial reserve is built up over a period of time to cover the potential loss. This is
generally not a viable option for non-profit organisations.
Retain the risk
Risk is an important factor in some sport and recreational activities and treatment may compromise
objectives of the activity. Treatment may therefore be regarded as undesirable and the risk accepted
by the organisation, participants, spectators etc. The risk evaluation may also reveal that the
likelihood of an event is so remote, (meteor strike) or the risk level so low, that the risk can agreeably
be retained.
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IMPLEMENTING RISK
MANAGEMENT
Planning
Once the best treatment options have been selected, a planning process should be documented and
applied to guide implementation. This should detail actions, responsibilities, time frames, and the
resources required. A risk management plan, like any other, requires cooperation, commitment, and
on-going monitoring and evaluation to be successful. An example of such a plan is included as Case
Study 1 - 9.1
When should risk management be applied?
The simple and idealistic answer is all the time, and to the extent of the obvious, we do manage risk
continuously. For an organisation though, there are distinct planning and design opportunities when
it is sensible to apply risk management principles such as:
Strategic planning
Operational planning
Program and activity planning
Event planning
Facility planning and design
Equipment design
Organisations with strategic plans should incorporate risk management in this planning process as
part of each key result area, or maybe as a separate key result area.
Some organisations, even those with strategic plans, may decide an independent approach to risk
management planning is warranted to provide a better focus.
How should risk management be applied?
Applying risk management is a logical and deliberate process of identification, evaluation,
and treatment of risks in context with the organisation, its activities and operating environment.
It is a versatile management tool which can be applied in varying degrees. It can be applied
comprehensively to identify and manage all the risks to which an organisation may be exposed,
or it can simply be applied to part of an organisations activities such as its finances, or a particular
event, or even a particular risk. The process is also flexible, and once understood can be manipulated
to suit various methods of application.
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A course of action
There is no doubt that a certain level of awareness has been created about risk management.
However, many people are unfamiliar with the risk management process, unsure about the extent to
which many aspects of risk management apply, and feel unqualified to decide what should be done.
They feel intimidated risk management is quietly tucked aside in the hope that nothing will
go wrong.
This is risky management.
A more positive course of action would be:
Raise risk management at the next executive or club meeting. Ask:
Are we aware of the risks our organisation faces?
Do we manage these risks effectively?
If the answer to either question is no, action is necessary.
Establish a workgroup to address risk management.
Invite a consultant from the Office of Sport and Recreation to discuss risk management and
talk over options the group may have.
Three options may be:
Implement a comprehensive risk management approach which will identify and consider all
the risks to which an organisation may be exposed. Such an approach may be run in house,
although an independent facilitator is recommended. Although comprehensive and thorough,
this approach can be tedious, time consuming, and demand considerable commitment.
Use an audit approach. An audit process can be used as a diagnostic tool to indicate the
strengths and weaknesses of an organisations risk management, and in so doing indicate the
priority areas for attention. This is an appropriate approach where time and resources are
limited, but the limitations of such an approach must be recognised.
If specific problems have been identified, address those problems. Implementing a
comprehensive approach to combat specific problems is like fumigating the entire house
because of ants in the kitchen.
Regardless of the approach, remember that in dealing with risk management it is unlikely that any
one person will have all the answers. Seek specialist advice, particularly in legal matters and dont
forget the resources that exist within your own organisation. The experience, knowledge, skills, and
professions of members can often offer all the advice and solutions that you need. Make a point of
knowing your people. They are the best resource your organisation has.
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RISK & SAFETY AUDITS
Introduction
Risk is an integral part of all sport and recreation activities. Traditionally, risk management in sport
has focussed on injury prevention, but today, in an increasingly complex environment, it is about
more than just preventing injury.
Organisations are now more likely to be held accountable for losses, whether it be injury to
participants, theft, damage to facilities and equipment, or loss of goodwill, and for their performance
in risk management. There are many risks which should be considered by a club or organisation to
provide safe and sustainable sport and recreation experiences.
The increased awareness of risk management in the sport and recreation industry has caused many
organisations to question their performance, but often they have found little guidance to help move
them beyond this point.
The approach of sport and recreation organisations to risk management is often reactive, and little is
done to anticipate and deal with problems before they can escalate.
Rather than wait for a catastrophe, progressive organisations are now shifting to a culture of
continuous improvement and using audits as a tool to evaluate their performance and guide their
direction in risk management.
What is an audit?
A systematic and critical examination of the key risk and safety areas in an organisation.
A diagnostic tool which will disclose an organisations strengths, weaknesses and main areas of
vulnerability to risk.
Three audits have been included to cover the major areas of risk for sport and recreation
organisations. These are:
Safety audit focus on injury prevention
Risk audit focus on organisational risks
Event audit - focus on organising an event
The basis for each is a checklist of questions which must be adjusted to recognise the diversity of
organisations, their playing environments, equipment, and programs.
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What can an audit tell us?
It provides an assessment of the current state risk/safety management in an organisation.
It identifies broad areas of concern for risk and safety.
It can show whether the systems in place to manage risks are working.
In identifying weaknesses and the main areas of vulnerability to risk it prompts thinking on
remedies and priorities.
It brings to attention areas that perhaps have not previously been considered, but are
important to improving risk or safety management.
What are the benefits of an audit?
It provides a positive approach to evaluating performance in risk management.
It greatly assists the risk management process by guiding the identification of risks.
It is a clear demonstration of an organisations commitment to risk management.
It can provide a benchmark for reporting performance in risk management.
It can assist an organisation to develop a better understanding of roles and responsibilities in
risk management.
It is a clear demonstration that an organisation is reviewing and monitoring its safety systems,
which can be a valuable point if called to account for safety systems in court.
How does the process work?
The best method for implementing an audit process is to use a focus group, guided by an
independent facilitator.
The effectiveness of each audit will rely on the quality and honesty of response to each question. It is
therefore important that the focus group is representative of, and has a good level of knowledge and
experience in the organisations activities. It is also important to have a facilitator with a reasonable
knowledge of risk management and a good understanding of the audit process. The key steps are:
1. A clear explanation of the audit, and how it fits into the risk management process is provided
to the organisation.
2. The questionnaire is adjusted in consultation with the organisation.
3. The audit process is conducted with the focus group.
4. A report of the process is prepared, and provided to the organisation.
The report will indicate those areas that require attention and may suggest some remedial action.
Remember that the audit has simply identified a risk and the risk management process must be
completed by evaluating and treating the risk.
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RISK AUDIT FOR SPORT &
RECREATION
ORGANISATIONS
Administration
yes no
Is your organisation properly constituted?
Is the constitution appropriate and relevant to your organisation?
Are all members aware of your constitution?
Are members provided with a copy of your constitution?
Does your constitution cover the following broad areas?
Objectives of your organisation
Powers of the organisation
Membership
Termination of membership
Affiliation
Management committee
Auditor
General meetings
Voting
Finance
Common seal
Alterations to the constitution
Winding up of the organisation
Does your organisation follow the requirements of your constitution?
Is your organisation incorporated?
Do you fulfil the requirements to maintain incorporation?
Are meeting procedures in accordance with the constitution?
Are suitable minutes recorded, distributed and approved?
Is inward correspondence recorded?
Is correspondence dealt with within prescribed time frames?
Is outward correspondence monitored and approved as appropriate?
Are club records maintained to an appropriate standard?
Are club records stored in a secure place?
Is appropriate membership information collected and maintained?
Are procedures in place to ensure security of membership information?
Does your organisation have effective channels of communication established?
Are liaison protocols established for important relationships?
Is the annual report circulated to all members?
Risk Audit for Sport
& Recreation Organisations
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Finance
yes no
Are all financial transactions accurately recorded?
Is an annual audit conducted of your organisations financial records?
Is the audit conducted by an appropriate person?
Is a financial report provided to each meeting?
Is all expenditure authorised through an identified process?
Are suitable banking arrangements in place for the organisation?
Is all income banked within a prescribed time frame?
Are multiple signatures required for withdrawl?
Are loan conditions met and repayments made on time?
Are the requirements stipulated for any grants being met?
Does your organisation have a financial plan?
Does your organisation prepare budgets where appropriate?
Is professional advice sought on financial matters?
Insurance
yes no
Does the organisation have suitable insurance cover?
Was advice sought from an insurance broker?
Are all members aware of the organisations insurance with respect to:
cover
limitations and exclusions
responsibilities
claim procedures
Is insurance reviewed on an annual basis?
Policy
yes no
Does your club have any policies to guide its decision making?
Are policies documented in an appropriate manner?
Are policy documents easily accessible to all members?
Are policies clearly communicated to all members?
Are policies properly implemented?
Are policies supported by appropriate operating instructions?
Are policies monitored and periodically reviewed?
Are there clear policies in respect of: Equal Employment Opportunity
People with Disabilities
Discrimination
Harassment
Drugs
Child Protection
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Planning
yes no
Does your organisation have a clear, documented strategic direction?
Are all members aware of and in agreement with the direction?
Does your organisation have a risk management plan?
Are responsibilities clearly defined in all plans?
Are time frames set and met in all plans?
Are adequate resources allocated to implement all plans?
Do you have appropriate emergency response procedures?
Do you have appropriate critical incident management plans?
Do you periodically review your plans?
Personnel Management
yes no
Are position descriptions available for all office bearers?
Do position descriptions clearly detail responsibilities?
Are suitable induction processes in place to ensure a smooth transition
when office bearers change?
Has the organisation adopted appropriate Codes of Behaviour?
Are responsibilities shared amongst members of the organisation?
Are the following legislative requirements met for paid employees
Workers Compensation Insurance
Taxation requirements
Superannuation requirements
Award requirements
Workplace Health and Safety
Rehabilitation requirements
Are reporting mechanisms and levels of authority clearly defined
for employees?
Are representative selection procedures clearly documented?
Is there a clear procedure to handle disputes/complaints within the organisation?
Is there a procedure for handling complaints from outside the organisation?
Education, Training, and Accreditation
yes no
Are all office bearers suitably skilled or qualified?
Do all coaches have appropriate accreditation?
Do all coaches maintain their accreditation?
Are opportunities for training and education sought?
Are opportunities for training and education promoted?
Are suitable records kept indicating the training and qualifications of members?
Do activity leaders have appropriate experience, training, or accreditation?
Does the organisation have an induction process for new members?
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Contracts
yes no
Does your organisation have:
Leases
Sponsorship
Player agreements
Employment contracts
Tickets
Anyone paid a fee for service
Does your organisation fulfil the terms of the above contracts?
Are members aware of the nature of the contracts to which the
organisation is party?
Are all contracts subject to an appropriate review before renewal?
Hazard Identification and Control
yes no
Are appropriate risk / safety inspections made of:
Buildings
Grounds
Equipment
Are the inspections made on a regular or predetermined basis?
Is there a procedure documented for such inspections?
Is there a checklist to assist with inspections?
Are results of inspections recorded and filed?
Are inspections made by suitably qualified or experienced personnel?
Are defects identified by inspections addressed promptly?
Are suitable procedures in place to manage known hazards?
Are appropriate risk assessments made of all programs?
Is risk assessment an integral part of program management?
Are risk assessments documented?
Is there a clear procedure for reporting accidents/injuries?
Legislation & Industry Standards
yes no
Is your organisation involved in:
Fundraising through raffles, gaming machines etc
The operation of a canteen or food stalls
The operation of a bar on a permanent or casual basis
The employment of anyone including coaches, referees, scorers, administrators etc
The operation and maintenance of a clubhouse or facilities
The selling of products, services or merchandise
Sponsorship arrangements between businesses and your organisation
The organising of events in public places
Are you aware of the legislation or local Government By-Laws that could
apply to each of the above?
Does your organisation comply with the requirements?
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Legislation and Industry Standards (continued)
yes no
Are you aware of the industry standards that apply to your operations?
Does your organisation comply with their requirements?
Do you ensure the recommended rules of play and protocols are followed
for your activity?
Is professional legal advice sought when necessary?
Do members understand the extent of their Duty of Care?
Event Management
yes no
Is risk management considered when planning an event?
Are all significant risks/hazards identified?
Are reasonable steps taken to reduce risks to acceptable levels?
Are risk management strategies documented?
Is an appropriate standard of care applied to participants?
Are participants notified of the risks, and the level of preparation/
skill required?
Is a suitable screening process in place to ensure all participants have the
fitness and skill necessary to safely participate?
Are procedures developed to respond to foreseeable emergencies?
Are appropriate permits sought to hold the event?
Is permission obtained from affected land managers?
Are participants required to complete and sign a suitable disclaimer?
Is the feasibility of the event seriously considered?
Is a detailed budget prepared?
Are organisational responsibilities clearly defined and allocated?
Are clear time lines determined for each aspect of organisation?
Is a plan prepared for media relations?
Is appropriate insurance cover purchased for major risks?
Are insurance covers reviewed to ensure they are adequate?
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Safety Audit -
Sports Injury Prevention
(extracted from Sportsafe Australia)
COMPONENTS OF SPORT SAFETY RESPONSIBILITY
Pre-participation Screening
Are participants screened by a health professional if there are concerns
about health or injury?
Are the athletes followed up after screening to ensure that they are fit to play?
Are coaches aware of pre-existing medical conditions of the participants, such
as asthma, diabetes?
Are coaches aware of medications that athletes require, such as ventolin?
Injury Surveillance
Does your club/facility maintain injury records?
Are these records adequately stored in an easily accessible form?
Are these injury records used in directing prevention activities?
Are these injury records used to produce reports?
Does your club/facility use the injury figures to improve safety practices?
Are injury records reviewed?
Does your club/facility contribute to other data collections?
Is injury data collected with reference to the number of participants and
level of competition?
Physical Preparation
Flexibility
Are the participants instructed in how to stretch properly/appropriately
for their sport?
Is stretching performed in the warm-up and cool-down?
Skills
Is training provided in the skills of the game for participants to participate safely?
Is training provided that is targeted at preventing injury, such as safe
landing techniques?
Safety Audit -
Sports Injury Prevention
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Maturity and Body Type

Is safety with regard to physical suitability, considered when participants are
selected for specific positions?
Are participants/coaches aware of certain problems/issues related to women
and girls in sport such as amenorrhoea, eating disorders?
Are young participants matched for biological age rather than chronological age?
Coaches and Officials
Accreditation
Does your club use accredited coaches?
Does your club use accredited officials?
Do your coaches and officials attend regular education updates?
Do your coaches undergo re-accreditation?
Are there people on hand with current first aid certificates?
Supervision
Are all programs and activities planned and conducted according to recognised
safety guidelines?
Do supervisors inform participants of safety issues?
Are all activities properly supervised by qualified personnel?
Are supervisors regularly updated regarding new activity hazards and safety measures?
Do supervisors have adequate sports first aid training?
Role Models
Do coaches and officials act as positive role models, eg non-smoking,
incorporate codes of behaviour and sports safety principles into personal behaviour?
Modified Sport
Are modified games/activities provided for:
juniors?
seniors?
disabled?
Is equipment modified appropriately for these groups?
Health Guidelines and Policies
Children in Sport
Does your club follow the Children in Sport Guidelines produced by Sports
Medicine Australia (SMA) and the Australian Sports Commission (ASC)?
Does your club have consent forms for child participation?
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Pregnancy in Sport
Does your club follow the Pregnant Athlete and the Law Guidelines
produced by the Women and Sport Unit at the ASC and SMA?
Does your club advise women to seek medical opinion in regards to
participating while pregnant?
Alcohol Usage
Does your club discourage alcohol consumption before participation?
Does your club/facility provide alcohol free and low alcohol drinks
post-game and at functions?
Hydration
Does your club follow guidelines on fluid replacement?
Does your club follow guidelines for safe conduct of play in regards to
heat, cold, humidity etc (SMA)?
Policy and Regulations
Infectious Diseases Policy
Does you follow the infectious diseases policy produced by SMA?
Do your participants use only their personal water bottle?
Do your sports first aid and medical staff follow recommendations for
handling bleeding ie: wearing gloves, removal of injured from play?
Emergency Plan
Is there an emergency plan for serious injury?
Is the plan communicated regularly to coaches and officials?
Is there a telephone accessible for emergency calls?
Is there easy access for a stretcher between the playing areas and the first aid room?
Is the local emergency/ambulance service aware of your game schedule?
Do emergency personnel have clear access to the playing venue?
Are emergency drills regularly conducted?
Risk Management Plans
Does your club/organisation/facility have a comprehensive sport safety plan?
Are all safety policies, procedures, rules and responsibilities outlined in a manual?
Is there an established risk management committee to meet regularly?
Is there regular review and modification of the sport safety plan?
Are sports participants or parents informed of prevention and injury
management procedures?
Does an individual or a group have responsibility for enforcing the safety regulations?
Have appropriate checklists been established and reviewed?
Are accurate records maintained of safety procedures undertaken?
Are regular safety updates conducted for all those involved in the sport/facility?
Is there a system for reporting and correcting unsafe conditions or practices?
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Does the sport/facility insurance policy include sufficient negligence

liability coverage for all activities, supervisors and athletes?
Are legally counselled waiver/consent forms required?
Are safety/risk management policies posted for participants to see?
Sport First Aid and Trainers
Sports First Aiders and Trainers
Does your club use qualified/accredited sports first aid personnel?
Do they update their education?
Is a qualified sports first aid person available at training?
Is a qualified sports first aid person available at games?
Are injury records kept?
First Aid
Is there a first aid plan or policy for your club and facilities?
Does your club have a policy for management of concussion/head injuries?
Does your club have a policy for management of open wounds/bleeding?
Does your club have a policy for return to sport after injury?
Is there a designated first aid area or room?
Is it kept clean and hygienic?
Is there a suitable treatment table and light for suturing?
Are surgical gloves provided for trainers and medical staff to manage bleeding wounds?
Is there a designated disposal container for bloodied material and waste products?
Is there a first aid kit or supply cabinet?
Are the first aid supplies kept in a secure place?
Is the kit/cabinet checked regularly and restocked?
Is ice readily available for the first aid room and playing area?
Is a stretcher (Jordan Frame where necessary) available?
Is there a bench in the first aid area or change room at hip height for trainers to
tape or dress wounds?
Is there a list of emergency telephone numbers?
Are emergency procedures posted?
Injury Referral
Does your organisation have a referral or on-call system to appropriate
sports medicine professionals?
doctor?
physiotherapist?
dentist?
Is your local hospital aware of scheduled games or events?
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Equipment
Playing Equipment
Is the equipment necessary for the game/activity regularly checked and maintained?
Are manufacturers guidelines/specifications/recommendations followed?
Is the equipment used for the purpose it was designed?
Is the playing equipment properly positioned?
Is the equipment in accordance with the regulations and recommendations of the sport?
Is the playing equipment properly stored, when not in use?
Are separate water bottles provided for the players?
Protective Equipment
Is protective equipment required for your sport?
Does the equipment fit the participant?
Is the participant dressed appropriately for the activity?
shoes?
clothing?
hat?
eye wear?
Are participants restricted in the type of protective equipment they may use?
Does an official check the equipment of all participants before training and competition?
Are mouthguards recommended for participants in your sport?
do mouthguards used by participants conform to safety guidelines?
Are helmets recommended for participants in your sport?
do helmets used by participants conform to safety guidelines?
Is body padding or other protective equipment recommended for
participants in your sport?
does body padding or other protective equipment used by participants
conform to safety guidelines?
Does your club provide protective equipment for its players?
Is the protective equipment cleaned hygienically between use?
Is the club equipment checked and maintained regularly?
Are manufacturers guidelines/specifications/recommendations followed?
Is the equipment used for the purpose it was designed?
Is the equipment in accordance with the regulations and recommendations of the sport?
Is the protective equipment properly stored when not in use?
Playing Environment and Facilities
Surfaces
Is the playing surface clear of all hazards?
Is the surface safe for play eg grass mown, lines marked or floorboards secured?
Are sprinkler heads covered?
Are holes and uneven patches covered?

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Are cricket pitches covered with sand/soil for winter sports?

Are wooden surfaces safe ie no water on floor and line markings secure?
Is synthetic turf safe ie not worn or lifting?
Is the floor surface smooth, non slippery and clean?
Facilities
Is there adequate lighting for safe conduct of the game?
Is there adequate lighting in the change rooms?
Is there adequate lighting outside the building/complex and in the car park for safety
of participants arriving and leaving?
Are goalposts and hard objects that players may collide with adequately padded?
Are goalposts securely fixed eg in soccer so that injury does not occur?
Are corner posts/flags constructed to give way if a player collides with them?
eg cardboard posts in football or race poles in snow skiing
Are safety or cushioning mats placed and secure?
Are spectators safely separated from the participants with an appropriate barrier?
Are the spectators safe from collision with players, objects etc?
Are the change rooms clean, tidy and hygienic?
Are hot showers provided?
Are non-slip mats provided in shower areas?
Does your club have a policy of not sharing showers and spas after training and matches?
Are emergency lights visible and functional?
Are there regularly maintained fire extinguishers within easy access?
Do facility structures and equipment comply with laws, regulations, rules and standards?
Does the facility have adequate ventilation and temperature control?
Is the facility pollution free?
Is there adequate protection for spectators and adjacent activity areas?
Is there access to drinking water?
Are all entry/exits secure and well marked/lighted and hazard free?
Is there emergency vehicle access?
Are natural hazards checked regularly and appropriately signed?
Environment
Does your club have a cancellation or postponement policy for adverse
inclement weather, such as storms and lightning or hot and humid weather?
Does your club have a policy for water conditions:
water quality for open water swims?
water temperature for swimming and diving?
ocean conditions for sailing, surf swimming and craft events?
Is shade or sun shelter provided for players while waiting to compete?
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Injury Management and Rehabilitation
Does your club maintain injury records of participants?
Does your club/facility provide coverage by sports medicine professionals at
games or training?
Does your club have injury management and referral guidelines for participants?
Are players required to pass a fitness test before return to training and competitions?
Insurance
Does your club/facility have adequate insurance to cover catastrophic
injury and negligence liability?
Is your insurance linked to a sport safety plan?
Are claim forms easily understood and readily available?
Source: Sportsafe Australia - A National Sports Safety Framework
Australian Sports Commission 1997
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Risk Audit for Event Management
Introduction
Risk management is an important and integral part of the overall management of any event. The
safety of participants, spectators, and all those involved in organising and running the event should be
paramount to the organisation of the event.
Those with a good knowledge and experience of past events will usually be well placed to identify
and evaluate risks, and develop the strategies for the management of risks.
It is prudent though not to become complacent and rely on old hands. Things change and
assumptions should never be made that risks are being managed.
The following process is designed to assist organisations to evaluate their risk management of events
and consists of three distinct stages:
1. define the event
2. identify and catalogue risks
3. develop risk management strategies
1. DEFINING THE EVENT
Provide a synopsis of the event that details:
where the event is being held and who the management authority is for the venue ?
when the event is being held ?
what comprises the event ?
what guidelines will be applied in running the event ?
who will participate in the event ?
who the organisers of the event are ?
the allocation of responsibilities amongst the organisers ?
other organisations that will assist with its running ?
sponsors of the event ?
the circumstances under which the event will be cancelled or postponed ?
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2. IDENTIFYING RISKS
Identify risks using the following checklist as a prompt
1.The Organisation
1.1 Is the event being run under the auspices of an incorporated organisation?
1.2 Has the organising committee been delegated the authority to organise and run
the event?
1.3 Is the role of the organising committee clear?
1.4 Are responsibilities of committee members clear?
1.5 Is the committee working to established timelines?
1.6 Are accurate notes made of proceedings and decisions at meetings?
1.7 Is good communication maintained between committee members?
1.8 Is good communication maintained between the committee and the parent
organisation?
1.9 Are organisers aware of their Duty of Care?
2.Finance
2.1 Have financial projections been completed to establish the events viability?
2.2 Has finance been allocated as a specific role to a committee member?
2.3 Are arrangements in place to segregate event finances from those of the parent
organisation?
2.4 Are all financial transactions pertaining to the event recorded?
2.5 Are receipts kept for all purchases?
2.6 Are safeguards in place to protect financial assets?
3.Participants
3.1 Are participants screened to check they have the experience and fitness to safely
participate?
3.2 Do participants sign a risk disclosure as part of their entry into the event?
3.3 Are participants provided with specific safety information to assist their
preparation?
3.4 Is a briefing given to participants before the start of the event?
3.5 Is the condition of participants monitored during the event?
3.6 Is a system in place to ensure all participants complete the course?
4.The Course / Playing Area
4.1 Has the feasibility of the course been proven?
4.2 Is the standard of skill required within the capacity of the likely participants?
4.3 Is the course clearly marked?
4.4 Do safety provisions for the course meet prescribed standards?
4.5 Have specific hazards been identified and addressed?
4.6 Is a final check made of the course before competition starts?
4.7 Has permission been obtained for the event? (if on a public road/place)
4.8 Are all conditions of any permits being met?
4.9 Are warning signs placed to advise the public of the event?
4.10 Are neighbouring properties or those likely to be affected advised prior to the event?
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5.Management
5.1 Are course marshals, officials, timers, and safety personnel clearly briefed?
5.2 Do all officials and safety personnel have appropriate qualifications?
5.3 Does the communications system have the capability to meet all demands?
5.4 Does the timing system meet the requirements for records to be recognised?
5.5 Is a back up timing system in place?
5.6 Has an appropriate first aid facility been arranged?
5.7 Are parking facilities adequate?
6.Insurance
6.1 Has a suitable cover been arranged for the event?
Does the cover include:
- personal injury for competitors and officials?
- legal expenses?
- cross liabilities?
- pluvial insurance?
- property / equipment?
- public liability?
6.2 Does the cover extend to preparation and winding up of the event?
7.Promotion
7.1 Has a promotion plan been prepared for the event?
7.2 Has a media plan been arranged for the event?
7.3 Is a person clearly allocated the responsibility for media liaison?
7.4 Are all press releases checked by the organising committee?
7.5 Are media personnel provided with safety briefings on the day and guided to safe
locations?
8.Sponsorship
8.1 Is sponsorship a responsibility clearly allocated to one person?
8.2 Are all sponsorship arrangements clear and known to the organising committee?
8.3 Are competitors advised of any sponsorship requirements?
8.4 Have checks been made to ensure there is no conflict between sponsors or deals?
8.5 Is there good communication with all sponsors?
8.6 Is there a process to advise sponsors of any crises associated with the event?
8.7 Is every effort made to fulfil sponsorship agreements?
9.Emergencies
9.1 Have all possible emergencies been identified?
(ie serious injury to participants, officials, spectators / fire etc)
9.2 Have Emergency Response Plans been prepared to cover such emergencies?
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10. Equipment
10.1 Are arrangements in place to ensure all the necessary equipment is available?
10.2 Does all equipment used meet appropriate standards?
10.3 Has the equipment been checked to ensure it operates correctly and safely?
10.4 Are backups in place for critical items?
10.5 Are the operators of equipment competent/qualified to use it?
10.6 Are competitors and officials advised of personal equipment requirements?
10.7 Are safety checks made of competitors equipment?
11. Spectators
11.1 Do spectator facilities meet prescribed standards?
11.2 Are controls in place to prevent spectators from entering hazardous areas?
11.3 Are controls in place to limit alcohol consumption?
11.4 Are controls in place to limit the throwing of missiles?
11.5 Are suitable personnel available for crowd control?
11.6 Are adequate sanitary facilities available for all spectators?
12. Facilities
12.1 Do facilities meet the standards prescribed by the sport?
12.2 Are responsibilities for management of the facility during the event clear?
12.3 Are all participants, spectators, officials made aware of emergency plans for
the facility?
If you answered yesto all the above, your event has all the characteristics indicating risk
is well managed. If you answered noit may indicate a problem that needs attention.
To complete stage 2, the risks identified through the audit process should be catalogued in
a logical format. (See Case Study 1)
3. STRATEGIES FOR MANAGING RISK
Document strategies for managing risk and cross reference back to the risks catalogued to
ensure all have been addressed. (See Case Study 1)
It is useful to consider the following hierarchy when developing risk management
strategies
Prevention
Preparedness
Response
Recovery
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SPORT, RECREATION
AND THE LAW
Contents
Preface
The role of the law
Sport, recreation & the law
Key intersections of law and sport
Waivers and disclaimers
Glossary of terms
References
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Prepared by and copyright to:
Rick Sarre
Associate Professor and Head
School of Law and Legal Practice
University of South Australia
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PREFACE
From time to time someone will allege that a sports issue has been side-tracked by legal argument,
bogged down by legal technicalities and delayed by legal stalling. Sometimes there is justifiable
concern that some lawyers and their clients are playing out a game of time-wasting deceit. But most
often, when these allegations are explored further, it is discovered that the delays have been caused
by the exploration of legitimate legal concerns and the protection of the bona fide rights of
associations, businesses and individuals.
The purpose of this section is to explain and reinforce the crucial role of law in the sports context, to
explore the legal issues that have the potential to arise in sports management, and to review risk
minimisation processes in their legal context. Managers and administrators have to be aware of the
legal aspects of their work both as a way of minimising exposure to legal suits and as a means of
putting in place best practice mechanisms that will improve the way in which sport is conducted,
managed and enjoyed.
THE ROLE OF THE LAW
Two July 1997 events, where firstly a young girl was killed while watching a demolition in Canberra
in a fun day organised by the City Council, and then the horrendous collapse of a bridge at an Israeli
stadium just as Australian athletes were entering the arena, provide stark and sobering reminders of
the potential loss of life and legal liability of those organisers and event managers who fail to consider
those for whom they should be responsible. The law exists to ensure that those responsible for loss
are brought to account, and to demand that organisers put in place protocols to prevent, as far as
possible, injury and loss from occurring. Those who design the law attempt to ensure fairness, access,
equity and justice generally in the administration of sports bodies and events, their managers and
their participants.
The law of which we speak derives not just from statutes created in federal and state parliaments,
but also from judges decisions in courts (common law). Judges are either creating precedents from
situations which are not governed by statute, or from interpretations of statutes. Thus, if someone
asks, what is the law we need to know regarding the holding of our national championships? the
answer could involve a variety of answers: state statutes regarding employment law, common law
regarding occupiers liability, contracts and insurance, federal statute law regarding trade practices and
so forth. The laws which may be involved to sort out the aftermath of the death of the girl in
Canberra on the shores of Lake Burley-Griffin in July 1997 include contractual liability (common
law), liability for negligence (common law), potentially liability for breach of the criminal law (some
states have criminal codes) and perhaps federal health and safety standards and codes too, as well as
federal and state administrative law. Liability for the deaths of the Australians killed in Israel has the
added complication of invoking private international law and involving, essentially, the Israeli justice
system, which is not based upon the British common law tradition upon which Australian law rests.
The enforcement of the law is, thus, governed by the nature of the legal action and the jurisdiction
of the courts called upon to administer it. The issue of the law regarding sport can thus be rather
complicated. The notes set out below are designed to make that journey a little easier to follow.
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SPORT, RECREATION &THE LAW
The world of sport has significantly changed from a generation ago. Lawyers are now an
indispensable part of that world. Each day at the local, state and national level, sport, its participants,
spectators and administrators are commanding more and more media attention, committing and
spending more and more financial resources and thus requiring more legal attention than ever before.
In addition to this, there are countless persons involved in the manufacture, sale and distribution of
recreational equipment and supplies, not to mention stadium construction and materials. Many other
persons are involved in the supervision of recreational and leisure centres and the provision of sports
entertainment. Furthermore, there is an entire industry built around magazine, newspaper, radio and
television coverage and commentary of recreational and sporting pursuits. Sport is now big business.
At the international level, too, sport and the law are inextricably mixed. It is not possible to convene
an Olympic Games, for example, or arrange a sporting tour of a foreign country without calling upon
the principles of local and international law to guide administrators through the complex web of
legal questions concerning international rules, conflicting national laws and United Nations
resolutions. It is no longer possible, it seems, to convene a national event without engaging the law to
deal with questions of contracts, the distinctions between amateur and professional status, the use
and abuse by athletes of performance-enhancing (as well as psychotropic) drugs, allegations of result-
rigging and racketeering, conflicts between the legal regulations of different states, nations, and the
control of potential crowd violence. Further, lawyers have witnessed an unprecedented growth in the
number of damages claims in respect of sports injuries and contractual disputes.
There are a number of legal issues involved in all of these matters, and a range of minimisation
strategies which can be successfully employed. The following sections explore these questions in
more detail.
KEY INTERSECTIONS OF LAW AND SPORT
1. Liability in tort and contract for injuries to players and spectators
What are the issues?
The law recognises that certain people owe a duty to be careful to, and to take responsibility for,
sports players and spectators (the legal duty of care). Because a person who is in charge of premises,
for example, has the capacity to make those premises safe, or unsafe for that matter, then that
occupier will be prima facie responsible if injury occurs to persons who come on to the premises.
The main part of this discussion relates to the potential losses to clubs from poor maintenance of
grounds and facilities.
What are the risks?
Brown v Lewis (1896) 12 TLR 455 is an old case but the principle of the decision is still relevant
today. A stand collapsed at the (unincorporated) Blackburn Rovers Football Club and all members of
the management committee were held responsible for the plaintiff spectators injuries. Moreover, the
legal aftermath of the Bradford fire in 1985 kept British lawyers busy. The Bradford City Football
Club Limited was an impecunious club in the Third Division who claimed that they could not afford
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to clear the rubbish which had accumulated under the old grandstand. In the final legal judgment,
the substantial liability for payment of many thousands of pounds in damages to the injured and the
relatives of the deceased was apportioned two-thirds to the club and one-third to the local Fire
Authority.
Police agreed to pay over A$100 million as compensation to relatives of the victims (95 dead and 400
injured) of the Hillsborough tragedy - a terrible crush of spectators on the terraces - in 1989 after an
enquiry, conducted by Lord Justice Taylor, laid blame firmly at their feet. However, Lord Taylor was
also highly critical of football authorities, accusing them of providing squalid facilities for spectators.
In the High Court case of The Council of the Shire of Wyongv Shirt (1980-81) 146 CLR 40, a skier
skied into shallow water and hit his head when he fell, sustaining serious injuries. Near to the place
where the accident occurred, and standing in shallow water, the council had erected a sign saying
Deep Water, intending that sign to point to a deep water channel for boating enthusiasts. The sign
was ambiguous. A majority of the High Court decided that the council owed a duty of care to skiers,
who could quite reasonably misinterpret the significance of the signs message. But had there been a
breach of that duty? The council had argued that a risk of injury which was unlikely to occur is not
foreseeable and hence they had not breached their duty of care. They thought that they were on solid
ground, legally speaking. For in Bolton v Stone [ 1951] AC 850, the premier English court, the House
of Lords, had suggested that it is perfectly justifiable for a sports ground operator not to take steps to
eliminate a real risk (the risk of a cricket ball flying over a fence and into a street and hitting a
passerby) if the chances of harm are very slight, and if the circumstances are such that a reasonable
person, careful for a neighbours safety, would think it right to ignore the risk. The council, however,
was not successful. The principle in Bolton was modified by the High Court in Wyong. A risk of injury
which is extremely unlikely to occur, for example, a skier misinterpreting a sign and skiing into
shallow water, said the court, may nevertheless constitute a foreseeable risk. Only when a risk
becomes far-fetched or fanciful will the law refuse to acknowledge it. Counsel for Mr Shirt was, on
the facts, able to persuade the court that the risk was foreseeable and therefore his client was able to
recover damages (compensation) against the council.
Two other cases should be mentioned. Nagle v Rottnest Island Authority (1992-93) 177 CLR 423 held
that failure to alert a swimmer to a danger of shallow water at a popular, albeit remote, swimming
area amounted to a breach of a duty of care. Nagle was ultimately successful in convincing the court
that the Rottnest Island Authority should bear some responsibility for the injuries he sustained when
diving into shallow water and striking his head. Staines v Commonwealth of Australia (1991) Aust
Torts Reports 81-106 found in favour of a plaintiff who had broken her leg near a sports ground
and sought damages from the occupiers. She succeeded in her appeal, having argued a breach of the
duty of care owed to her.
In other words, the courts are applying simple and commonsense tests to determine whether or not
occupiers and organisers should have realised that there was some danger to spectators, visitors or
participants and thus should have minimised the risks. The magnitude of the risk and its degree of
probability must be considered by the law along with all other factors in determining liability.
Not all claims succeed however: In Wilmot v State of South Australia (1993) Aust Torts Reports 81-
259, a trail bike rider, injured while riding on a track which traversed Crown Land, was unable to
recover against the state government because the Full Court of the Supreme Court of South
Australia was unable to find a duty of care. The relevant government department in charge of Crown
Land had not invited nor encouraged access to that land, and foreseeability of injury alone was not
decisive of the existence of a duty of care. Thus the claim failed.
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In sum, then, damages will flow where there is a duty of care owed to participants or spectators,
where there is a breach of the duty of care should injury occur (in so far as it was foreseeable), and
where there is sufficient causation required to link the breach to the injury suffered. If the defendant
can show that the plaintiff contributed to the ultimate injury, then a complete defence (volenti non fit
injuria) or partial deference (contributory negligence) is sometimes available.
Minimisation strategies
1. Protocols to prevent harm
Occupiers and organisers and managers must take reasonable steps to ensure that vulnerable people
in their care are not injured. Occupiers and administrators must also ensure that they use reasonable
care and diligence to prevent damage to spectators property by any foreseeable behaviour (regardless
of how likely it is to occur) which the occupier knows about or ought reasonably to have known
about. One might speculate that this duty extends even to spectators who may have entered illegally
into the arena, so long as there was a likelihood or possibility that that may happen.
Will this trend of legal paternalism continue? There are strong arguments against extending the
liability of defendants in negligence cases.
(a) No one will want to be a sports administrator at the risk of making mistakes which they will
either have to compensate, or have their reputation tarnished in any event by the fact that the
matter gets dragged through the legal process;
(b)If the standard of care goes too high (you are deemed to be an expert more easily) with the
more training you undertake, then no-one will want to undertake training (which would defeat
the purpose of the whole exercise);
(c) Insurance companies will not want to insure clubs, associations and their officers because it
would not be profitable, or
(d)if they do insure them, the premiums will become so prohibitive that clubs or associations will
either go out of business or officers will be told that they are not needed, and injured third
parties and out of pocket creditors will remain uncompensated.
So, although it seems like a good idea to provide a remedy to people injured through a breach of the
duty of care that they are owed, the courts do not want this issue to get out of hand. The law
attempts to strike an appropriate balance. In the meantime, administrators should assume the worst
and take precautions (risk assessments and audit, purchasing insurance, provide training etc)
appropriately.
2. Security provision and other situational prevention measures
It is clear that the law grants to the occupier/administrator the power to require visitors to leave
premises, or to subject visitors to stipulations prescribed by the owner. This power extends to any
legally appointed agents of the occupier which include security staff. All visitors have an implied
licence to enter any premises (including government and statutory authority premises), but that
licence can be denied, revoked or withdrawn if visitors engage in activities which they know or ought
to have known are inappropriate (eg. stealing, assault or vandalism) or if they do not follow the
terms of the licence which have been drawn to their direct attention upon their arrival (eg. a sign
that says that a condition of entry is the requirement to submit to a search upon exit or not to visit
certain areas or not between certain hours).
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Fundamental to this area of law is the issue of consent. Where there is consent by the visitor to the
terms of the licence or to the direction of the staff, there is no problem. Anyone who dissents,
however, before entry or during the visit is in a different and far more contentious position. Those
persons are unlikely to be invited or, if they are already present, will be ordered off the property with
the legal authority of the occupier to use whatever force is necessary and reasonable in the
circumstances, and furthermore to be subjected to any requests (for example a search) that were
reasonably drawn to their attention upon entry. Such a proposition of law, of course, still leaves open
the question of the reasonableness of the force used.
Limiting the sale of alcohol, selling it in plastic cups, in wet areas set aside for the purpose at
substantially marked-up prices have been suggested (and successfully implemented) as means of
controlling unruly crowd behaviour. Some grounds have fitted fixed seating in preference to terraced
areas in sports stadiums as a means of controlling violence. There is, furthermore, evidence of reduced
vandalism and aggression in areas that are well maintained rather than those which are derelict.
Indeed, the Australian National Committee on Violence recommended, in accordance with these
findings, that:
Recommendation 131: Sporting organisations should devote attention and resources to those
aspects of stadium and facility design and maintenance, such as fixed seating and proper
upkeep, which are likely to discourage violence by spectators.
Recommendation 132: Sporting organisations should discourage irresponsible consumption of
alcoholic beverages by spectators, through such means as restriction on bringing alcohol into
sporting venues, beverage pricing policies, and the use of light plastic or paper containers.
Some British jurisdictions have enacted specific criminal statutes preventing alcohol on coaches or
trains transporting fans to and from matches, while some police forces separate rival fans entering and
leaving fixtures to prevent situations arising which may give rise to injury. International rules have
been employed in the United Kingdom and Europe, for example, the UK Football Spectators Act
1989, limiting the freedoms of identified trouble-making fans and allowing for the withdrawal of
passport rights of those convicted of violence abroad. There have been a number of other innovative
ideas, among them the requirement that persons present themselves at police stations during the
course of sporting fixtures if they have been ejected from grounds, identity cards for fans, and
prohibitions on the carrying of certain offensive weapons. Some associations have prohibited the use
of ethnic names for teams where it is believed that such names may be unduly provocative. It is
possible that a person injured as a result of the failure of a club or management authority to take
these steps could point out the knowledge of the risks and the failure to take precautions as
indicative of negligence.
3. Exemption clauses
Occupiers may attempt to limit their liability not only in tort but also in contract - where a contract
exists by virtue of paid admission - by including in the contract an exemption clause, for example, a
sign by the door of the arena which says, in effect, no liability for injury. Refer to the discussion on
waivers and disclaimers in the final section (below).
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2. Obeying the commercial and other laws
Sport used to be an amateur affair with the big prizes reserved for some golfing stars, a few boxers and
some American identities. Now, with the advent of television first in the 1950s and then global satellite
communications in the 1970s, that has all changed. Sport is, essentially, a global business worth billions
to the right audience observing the right product and endorsing a specific commodity. The Australian
Government sponsors sport each year to the tune of A$159 m. Greg Norman earns more than A$14
million each year without having to win a tournament. Sports businesses are not aloof from the vast
regime of business and commercial laws which now dominate the corporate landscape.
A day does not go by when a sports lawyer is not confronted with legal issues concerning the business
implications of
product endorsement, perhaps in violation of competition rules, or a competitor/sponsors
contractual agreement with the organisers
amateur status, where that is still important
illegal commissions paid upon the signing of international and national sports stars
taxation issues, particularly regulation of overseas earnings
contracts and breach of contracts, particularly contracts in restraint of trade
intellectual property issues - whose idea was it, and who should be paid for it?
marketing and fairness in advertising
restrictive trade practices - not engaging in anti-competitive conduct
broadcasting and the rights to see and hear versus a networks winning exclusive rights to
broadcast
employment law: there may be many legal industrial tussles between two groups.
What are the risks?
One needs to look more closely at the law of contract. When a person signs or agrees to a contract, he
or she is legally bound by the terms of that contract. But many contracts cannot be enforced if such
enforcement would not be in the public interest. In some circumstances it is possible that the law will
release a person from obligations under a valid contract. When a person signs a contract limiting his or
her right to pursue a career or a trade, such as a professional sportsperson, the common law treats such
contracts with suspicion. If the conditions of the contract are deemed to be unreasonable in the best
interests of the player or the public interest generally, the law will not enforce the contract or at least
sever the offending part. Such unreasonable contracts are termed contracts in restraint of trade.
There have been many cases exploring the boundaries of restraint of trade issues. The law has been
pursuing the field with interest and the courts have been guiding us through this particular mine-field.
This was one of the issues in the Packer Corporations 1995 attempt by its World Rugby Corporation
to challenge the domination of Murdochs sponsored ARL, for example.
The law is attempting to ensure that business and commercial deals are struck fairly and that
legitimate business interests are protected yet balanced against the legitimate interests of those who
may be in weaker bargaining positions. This training must extend to a knowledge of the law of
contract, tax laws, anti-discrimination laws and labour laws amongst other things.
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3. Obeying the corporate law: principles of management
The law is requiring volunteer officer-bearers to act far more responsibly than ever before. Theres
good reason for this. Many people stand to incur the fate of injustice should office-bearers remain
unaccountable to their associations. The law has now changed in all states to ensure greater
accountability. Since amendments to the Associations Incorporation Act (Tas) 1964 (adding section
24A), officers of incorporated bodies are now faced with similar responsibilities to directors and
other officers of corporations governed by the Corporations Law (Part VII Companies (Tasmania)
Code 1982) even if they are voluntary and unpaid officers. These duties include an obligation to:
to act honestly (which is more than just a duty not to act dishonestly)
to exercise care and diligence (that a reasonable person would exercise given their standing,
learning and training and the size, assets and nature of the incorporated body)
not to make improper use of inside information
not to make improper use of their position
Officer of the incorporated body can include a director, secretary or executive officer such as a
treasurer or public officer. It may include a person upon whose instructions the committee is
accustomed to act. Breaches of the above may leave the officer liable for civil and criminal penalties,
and liable for debts. Penalties for reckless indifference or intentional fraud are draconian and cannot
be insured against.
What are the risks?
Liability for debts and other liabilities may follow in circumstances where there has been negligence
in the administration of the bodys affairs. The creditor would have to show that the committee
members acted outside of their responsibilities or in breach of their duties. There must be reasonable
grounds to suspect that the association was not going to be able to meet its debts as and when they
fell due and the officers who took part in the decision to incur the debt would thereby be jointly and
severally liable for that debt.
Other duties of incorporated association officers include:
Disclosure of assets upon the winding up of the association
Accounting requirements for clubs with gross receipts over $200,000
Exacting requirements concerning the rules of the association and minutes of meetings
The purpose of the exercise is to ensure that sports administration is fair and not hampered by rorts
and nepotism. The courts will not fly in the face of commonsense and find a genuine volunteer liable
for mal-administration. But the corporations law is there to ensure that the rules are complied with,
in the same way that we all agree a referee is essential to any sports encounter.
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4. Protecting personal reputation
One of the most dearly prized attributes of any individuals interest is his or her personal reputation.
It is protected by the law of defamation. Once again the law is involved in a balancing act. The
individual interest not to have their privacy paraded before the world is pitted squarely against the
interests of the public generally to have the right to know.
What are the risks?
The case law highlights the risks of injuring reputation. In Boyd v Mirror Newspapers Ltd (1980) 2
NSWLR 449 the court heard that the Sydney Daily Mirror had described Les Boyd, a Sydney rugby
league player, as unfit to play properly as a result of injuries. But that was not all. The headline read
BOYD IS FAT, SLOW AND PREDICTABLE and described how Boyd had waddled on to the
field. Boyd sued the newspaper claiming that he had been defamed in his capacity as a professional
football player. At the trial, a jury awarded Boyd $15,000.
Lloyd v David Syme & Co Ltd (1986) 63 ALR 83
Under the headline Come On Dollar, Come On, published in Melbournes Age newspaper in
January 1982, there was an article which was highly critical of the then West Indian captain Clive
Lloyd. It suggested that Lloyd had deliberately lost a World Series game against underdogs Australia
in order to have the final (best of five) of the series played between Australia and the West Indies, a
spectacle which was sure to draw three times the attendance a West Indies - Pakistan final would
have drawn. The offending article made the following comment:
Come on dollars, come on ... This thought edges perilously close to the concept of takinga dive.
The Privy Council (the highest English court of appeal at the time) upheld the initial finding that
these statements carried with them imputations of dishonesty on the part of the West Indian captain,
even though Lloyd had not himself played in that particular game. They were therefore capable of
being defamatory.
Ettingshausen v Australian Consolidated Press (1991) 23 NSWLR 443
A shadowy steamy bath-room shot of one Andrew Ettingshausen, whose career whipped off faster
than his towel, cost ACP a lot of money. The jury said it was defamatory, and $350,000 was awarded.
Two years later it was reduced to $100,000. People in sport take their reputation very seriously. The
law is there to protect them.
It is important to ensure that officers abide by the law of defamation and understand the implications
of defaming a person, whether their career is in sport or not.
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5. Sport and criminal law
In February 1990, the Australian National Committee on Violence made its recommendation -
recommendation 50 - that sporting authorities should refer cases of criminal assault on the playing
field to law enforcement agencies for prosecution. But even before that offenders were already being
sent to be dealt with in the criminal courts in Australia without undue dissent. In relation to criminal
matters, the National Committee was concerned to reinforce the position in the minds of the general
public and sports administrators that the rule of law is not suspended when one walks on to a playing
field. A player does not consent to assault by taking part in a sporting match, wrote the committee
members. The risk of injury from hard play should not be confused with the risk of injury from
criminal assault.
What are the risks?
The risk of injury to players is higher where violence is permitted to go on unchecked. The criminal
law will interfere therefore to ensure that injuries are not perpetrated by unfair contact, and also to
ensure that the best person or the best team wins, not the team that is the most intimidating or
violent.
One can only speculate about the chances of the success of criminal prosecutions in Australia. Yet
fines of $5,000 were imposed by the Sydney Soccer League Tribunal on each of the two teams,
Sydney Olympic and Preston, whose fans were responsible for an ugly brawl at St George Stadium in
April 1990.
The potential for criminal liability (and consequently the availability of compensation under the
various state criminal injuries compensation legislation) may be uncertain, but it clearly exists.
Individual fines, bans and imprisonment are possible if the criminal law is infringed by players,
participants or team management. McNamara v Duncan (1971) 26 ALR 584; and more recently
Johnston v Giumelli, (1991) Aust Torts reports (81-085) show the potential for criminal liability. On
some occasions they are joined by the assailants club representatives (eg. Rogers v Bugden, a 1985
assault case reported in ANZSLA Newsletter Vol. 1(1) pp 4-5;) who also, in certain circumstances,
face civil action for damages arising out of assaults on the playing field.
Protocols should be set in place to ensure that individuals and groups are discouraged from acting or
reacting in a violent or criminal fashion in any sports or recreation activity. Tribunals (discussed
below) are essential to that process.
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6. Tribunals, suspensions and expulsions: doing it correctly so one is
not caught getting it wrong
Have sports administrators ensured the fairness of decisions of tribunals to ban a player from
competition, for example, arising out of drug use, which has become a major issue in sports
administration in the 1990s? Have the mechanisms that have been put in place (if they have been)
allowed for the principles of natural justice to apply? Has the person, who potentially risks their
career, been given an opportunity to hear the charges, to respond to them before an unbiased tribunal
who will decide the issues on the basis of the evidence and not extraneous considerations? There will
be a drug testing regime in all of the test events leading up to the Sydney Olympic games, education
programs, the maintenance of a laboratory, and anti-doping agreements. There will be procedures to
be met. The legal requirements will require strict adherence to the rules of natural justice.
The law refers to sport tribunals as having a quasi-judicial function. This is distinguished from a
strictly judicial function in that while the latter uses its discretion within a particular legal context
and according to a relatively narrow, certain and objective set of criteria, the former makes its
decisions using a much broader discretion, exercising it more subjectively upon various grounds of
policy and expediency.
There is no place in sport for a kangaroo court. After a brawl on May 18 1997 soccer sides Sydney
United and South Melbourne (along with a Socceroo) were found guilty of bringing the game into
disrepute and risk being expelled by the national league. If this occurs it must happen with due rights
of the protagonists being observed. If not, the courts may intervene. The Greg Williams 9 week
suspension after round 1 in the 1997 AFL calendar was put on hold by the Supreme Court of
Victoria and later re-instated by the Court of Appeal. An appeal to the High Court is pending.
Although the rules of evidence are not always strictly adhered to, administrative tribunals must
conduct themselves according to what are referred to as the principles of natural justice.
These principles include
the right of the accused person to know the charges and a reasonable time to consider them
the right to be heard in ones defence
the right to be heard before an independent body (that is, a body that is not biased or
prejudiced)
What are the risks?
A denial of natural justice to a member by any club or society no matter how small or large,
sophisticated or unsophisticated, may lead to an application to the courts for remedies of declaration
and injunction together with costs. An unfair decision must be reconsidered even if the same decision
is reached. It matters little that the person has admitted guilt.
An understanding of the rules of natural justice and a commitment to putting in place the
appropriate protocols to ensure fairness in the quasi-judicial functions of the sports body.
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WAIVERS AND DISCLAIMERS
The value of disclaimers has been debated for many years. On the one hand some suggest that they
are not worth the paper they are written on. On the other hand some authorities suggest that they
are water-tight means of limiting liability. The truth lies somewhere in between. One might speculate
that courts may be reluctant to deny injured patrons a remedy on the basis of the existence of an
exemption clause alone, particularly where one might argue the existence of a contradictory
(implied) term that the occupier contracted to ensure the safety of the patrons. In other words, the
courts may be reluctant to allow the negligent or responsible party to escape liability on a standard
clause that no-one understood, assuming that they were aware of it. On the other hand, the existence
of the clause, when pointed out specifically to participants at the time of the contract being entered
into or at some time prior to the activity, can go a long way to indicating to the courts that all parties
were aware of the dangers and understood their relationships and responsibilities to each other. On
balance, then, these clauses should be encouraged, carefully drawn up and clearly explained to all
persons who might reasonably be affected by them.
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GLOSSARY
Accused: a person who defends serious criminal charges
Action: a civil proceeding where one party sues another seeking a remedy
Adjudication: legal judgment of issues
Administrative law: that body of law which deals with governmental administration, tribunals
and statutory bodies
Assault (civil): intentionally creating in another person an apprehension of imminent
harmful or offensive conduct and/or carrying out the threat
Assault (criminal): an attempt or offer to hurt another person, using force or violence, coupled
with the intention or ability to do so, whether injury is inflicted or not
Bona fide: a Latin term meaning good faith, that is, honestly
Civil proceedings: proceedings which are not criminal, ecclesiastical (church) or military
Civil liability: a persons liability for payment or other compensation as determined by a
court exercising civil jurisdiction, based upon the principle of liability on
the balance of probabilities
Consideration: the price paid for a binding contract, distinguishing those promises which
are enforceable by the law, and those which are not
Contract: an agreement which is enforceable by the law, containing and ensuring that
the parties have the capacity to act, the appropriate intention, a meeting of
minds, legality, consideration of some value and sufficient certainty of terms
Contributory negligence: a partial defence to an action in negligence, alleging that the injured person
was partially the author of his or her own misfortune and thus relieving the
tortfeasor of some of the responsibility for damages
Criminal liability: ones liability as assessed by a court exercising criminal jurisdiction, based on
the principle of guilt beyond reasonable doubt
Damages: an award of money to compensate injury
Defendant: the person who both defends civil proceedings and (usually minor) criminal
charges (see accused)
Duty of care: the duty that is owed by a person to another in circumstances where the
former person should have contemplated that their acts or omissions could
harm the latter person
Exemplary damages: monetary compensation awarded by a court against a losing party to a civil
action designed to make an example of their case
Exonerate: relieve from responsibility
Foreseeability: You must take reasonable care to avoid acts or omissions which you can
reasonably foresee would injure your neighbour ... persons who are so
closely and directly affected by [ your] act that [ you] ought reasonably to
have them in contemplation as being so affected when [ you are] directing
[ your] mind to the acts or omissions which are called into question (per
Lord Atkin in Donoghue v Stevenson [ 1932] AC 562 at 579).
Impropriety: misbehaviour
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Incorporation: conferring a separate legal corporate personality
Injunction: a court order to prevent an occurrence or to insist that something be done
Jurisdiction: 1. the power of a court or judge to exercise legal authority and/or
2. the geographical boundaries or financial limits within which the
judgements of the court can be enforced
Legal liability: a legal responsibility for
Litigation: when parties come before the court to argue, and the court acts as umpire
Locus standi: the permission a litigant receives to stand (appear) before a court and
argue a case
Natural justice: the requirements of fairness by which all tribunals must abide
Negligence: a tort which protects and compensates injured persons who can prove that
another person owed them a duty of care, at a certain standard of care, and
breached that duty at that standard in circumstances which were caused
by the breach giving rise to foreseeable injuries [ see also foreseeability]
Occupier: the person who is in charge of premises
Occupiers liability: the legal liability of an occupier
Plaintiff: the person who institutes civil proceedings
Prima facie: a Latin term meaning at first glance
Privity of contract: the rule that says that only parties to a contract can gain benefits from it or
incur liabilities and obligations under it
Proximity: a test of near-ness applied by the law to ensure that injury, damage and
harm which may happen contemporaneously to the actions of a tortfeasor
are consequential of those actions such that they may be compensated by
the courts
Punitive damages: monetary compensation awarded by a court against a losing party to a civil
action designed to make them pay a penalty in addition to the actual loss
Quashed: rescinded, finished
Recovery (of damages): being able to receive an award of damages from a wrongdoer
Rescission (of contract): cancellation of the contract
Standard of care: the level of care set by the courts to determine how a tortfeasor should
have acted given the presence of a duty of care
Strict liability: there are no excuses; legal liability is assured regardless of intention
Sub judice: a Latin term meaning under a judge or in the course of trial, that is, still
being considered by the courts and therefore not open to public comment
Suspended sentence: a person is released from custody upon entering into
a bond to be of good behaviour, a breach of which will re-activate the
original sentence
Tort: a legal civil wrong, such as negligence, nuisance, defamation or wrongful
imprisonment for example, which the law will redress with damages
Tortfeasor: the person doing the tort, the wrongdoer
Trespass (to land) : going on to land owned by another without invitation, where ones
presence is either unknown, or if known, is objected to
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Vicarious liability: one person (or entity) being responsible for another persons torts or
criminal actions
Volenti non fit injuria: (Latin) a defence to the torts of negligence and assault, for example, where
the tortfeasor claims that the person injured consented to the risk or
likelihood of injury.
REFERENCES
Fewell M. (ed), Sports Law A Practical Guide, Sydney LBC 1995
Healey D, Sport and the Law, 2nd edition NSWU Press, Sydney 1996
Kelly G, Sport and the Law, An Australian Perspective, Law Book Co: Sydney 1987
Opie H, See You in Court: Recent Developments in Marketing, Selection and Disciplinary
Disputes, Sporting Traditions, November 1990
Sarre R, Leisure Time and the Law Sydney: CCH, 1987
Sarre R, Spectator Protection (1995) Canberra Law Review Vol 2(1), 25
Turner N, A History of Sport and the Law in Australia, Sporting Traditions, May 1991
800-15 The Framework 98
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Rick Sarre 1998
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6.1
Contents
1. Introduction
2. Industry standards
3. Legislation and sport
4. Laymans guide to legislation
5. The club as a legal entity
6. The club as an employer
7. The club as a fundraiser
8. The club as a service provider
Legislative information for this section was prepared by:
Jessica Holeywell
Law Student
School of Law
University of Tasmania
Beware!
The following information is intended as an indicative guide and should not be substituted for
professional legal advice which can account for the specific circumstances to which legislation or
standards may apply.
LEGISLATION AND
INDUSTRY STANDARDS
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1. INTRODUCTION
Legislation and industry standards are simply reflections of the standards that our society demands.
Legislation exists to moderate and arbitrate on a wide range of community issues. Drafts are prepared
and debated, before being passed by the parliament of the day to become law.
Industry standards appear in a range of formats from a variety of sources, but are not necessarily in
written form. A generally accepted practice may be determined to be the acceptable industry
standard despite a lack documentation.
In a risk management context, legislation and industry standards provide important benchmarks in
determining whether an individual or organisation has exercised behaviour acceptable to the
community, or in other words, a reasonable standard or duty of care.
A failure to comply with the minimum standards prescribed by legislation and industry standards can
expose an individual or organisation to a range of risks, not the least of which is the indication of
negligence on their part. This could have serious consequences if the individual or organisation is
called upon to defend a common law action.
It is imperative that individuals and organisations are aware of and meet the requirements of the
legislation and industry standards that apply to the activities in which they participate. This will
reduce the organisations exposure to risk, provide acceptable levels of safety for participants, and
alleviate the concerns and departure of administrators.
We live in a world of rapid social, economic, and technological change - sport and recreation are not
exempt. It is difficult to keep abreast of the latest standards. Be aware though that the courts are
becoming less tolerant of ignorance as an excuse, presuming that our access to information and
expertise has never been better.
Sport and recreation organisations should clearly define the activities in which they are involved and
seek appropriate advice to ensure that the standards prescribed by legislation and their own industry
are being met.
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2. INDUSTRY STANDARDS
Industry standards appear in a range of formats and originate from a variety of sources. Some apply
across a range of organisations or industry sectors, while others are specific. They may appear as:
Australian/New Zealand Standards (see catalogue in Resources & Info section )
European Standards (where none exists in Australia)
Codes of practice
Policy statements
Coach/official accreditation
Codes of behaviour
Rules of play
Guidelines for.........
Dimensions for playing areas
Industry training standards
It is important to understand that a common practice need not be formally documented to be
accepted as an industry standard.
Key organisations in the development of industry standards include:
Standards Australia
Peak industry organisations
- Confederation of Australian Sport (CAS)
- Outdoor Recreation Council of Australia (ORCA)
National sporting organisations
Royal Life Saving Society of Australia
Government agencies
- Australian Sports Commission
- Worksafe Australia (NOHSC)
- TARAC (training standards)
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3. LEGISLATION AND SPORT
The prevalence of legislation
Australias legal system is drawn from two main sources - common law developed by judges and
courts, and statute law developed in parliament by politicians. The importance of common law is
usually confined to areas void of legislation or as a means of giving legal meaning to ambiguous
provisions in an Act. For example many previously common law dominated areas such as the Law of
Contract have been overridden by Commonwealth and State consumer protection legislation. Even
tort law has also been influenced by statutory changes. The prevalence of legislation means that
almost all of sport activity and conduct will come into contact with statutory law.
What is legislation?
Legislation is law made by Parliament. Legislation also goes by the names of an Act of Parliament or
a Statute.
As law made by Parliament, statute law is superior to common law - whenever there is a conflict
between common law principles and what is provided within an Act, the Act will prevail. There is
also a hierarchy between Commonwealth and State legislation - where both legislations exist to
regulate a particular matter, and there is inconsistency between the terms of both Acts, the general
principle is that the provisions of the Commonwealth Act will prevail over those of the State.
Features of legislation
An Act is capable of conveying simple rules in far less space than volumes of decided cases. It also
provides the legal machinery required for implementation of aims of the Act.
A new Act is able to repeal all previous Acts, establishing a new system of rules and procedures. The
opposite is true of common law, which is limited to the process of a court deciding a particular case
without the liberty of deciding future matters. Therefore legislation is able to effectively reform the
legal system, whereas reform via case law is a long process based on precedent.
An Act may originate as an idea for change, aim to remedy a social problem or merely generate
government income.
Parliamentary Acts can empower a public authority, local council, Minister or public servant to make
regulations, rules, ordinances, or by-laws - this form of legislation is called delegated legislation. The
rationale behind delegating legislative power is that Parliament can lay down general principles in a
statute but leave the daily details to those administering and enforcing the law. It would be
impractical and time consuming if Parliament was solely responsible for creating and passing every
rule or regulation. Delegation allows a specialist body to be both the administrator and enforcer,
which in turn makes alteration and repeal of regulations efficient and effective.
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4. THE LAYPERSONS GUIDE TO AN ACT
OF PARLIAMENT
What legislation exists, and what does it apply to? People involved in sport and recreation activities,
as administrators, volunteers or participants, are unlikely to be aware of the full array of legislation
and rules.
Non-compliance with legislation means breaking the law and ignorance of the existence of a
prohibition or regulation is usually not a defence. One of the crucial aspects of legislation is that
when a provision is breached a set penalty is incurred, which, unlike civil law may involve a term
of imprisonment.
How do I find an Act ?
Most legislation is accessible through the internet on http://www.thelaw.tas.gov.au. To locate particular
legistation in the statute books, you need to know the name of the Act and the year it was passed. Acts
are often updated or repealed, changing parts of the legislation, so you need to ensure that what you
are reading has been updated to include subsequent amendments.
How do I read legislation ?
Several rules of interpretation have developed as a guide to determining the meaning of an ambiguous
word or phrase within an Act.
Words are to be given their plain and ordinary meaning.
The interpretation section of the Act sets out specific meanings for words or phrases. The
application section of the Act defines how the Act is to apply or to whom.
If the Act fails to define the meaning of a particular term used, the Acts Interpretation Act 1931
(Tas) provides definitions and interpretations of words that commonly appear in legislation.
Words and phrases may already have been subject to judicial interpretation where a dispute
revolved around the meaning of a particular word or phrase in an Act. It is only in this scenario
that recourse to case law should be made.
As a last resort, recourse to legal dictionaries or the Oxford English Dictionary may be made to
find a meaning
What is the relationship between case law and legislation?
Courts are often called upon to give effect to the intention of Parliament as expressed in an Act or
regulation. Words or terminology may have a precise meaning within the Act and may also have been
given a legal interpretation by the courts. An example is in the definition of worker or employee for
the purpose of applying workers compensation legislation.
Are council by-laws and regulations enforceable law?
Council regulations or by-laws are a form of legislation, and have the legal force of an Act of
Parliament. The Local Government Act 1962 gives councils the power to impose fines and penalties
for non-compliance. Sporting clubs will usually be affected by by-laws and council regulations when
conducting fundraising activities.
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5. THE CLUB AS A LEGAL ENTITY
Key legislation
Associations Incorporation Act 1964 (Tas)
Corporations Law
General
Greater organisation and professionalism within the sporting industry has required increased
regulation and administration at the level of local sporting clubs. Local clubs may be formed and
incorporated to participate in a district football league which in turn may participate in a state
football league which is administered by a corporation formed under Corporations Law. The
corporate structure selected depends on the nature and objects of the sporting association and
determines who is liable for conduct of the association and in what circumstances liability will exist.
The following corporate forms are most commonly adopted:
An association, incorporated under Associations Incorporation Act
A company, limited by guarantee and incorporated under Corporation Law
Issue 1: Administration
What does incorporated mean ?
An incorporated body is a legal entity, legally distinct from its members and the persons who conduct
its affairs. Actions taken on behalf of an incorporated body are regarded as those of the corporation,
unless the action goes beyond the powers conferred on it by its constitution and rules or involve
improper or fraudulent conduct.
Incorporation brings with it a level of public supervision and accountability. Members have no rights
over the incorporated clubs funds or property. Contracts or debts entered into are binding on the
club rather than individual members, although committee members can be held accountable for
irresponsible financial management.
What is the best method of incorporating? (If your club is not incorporated)
Club committee members should familiarise themselves with legislation concerning the club as a
legal entity. There are several methods of incorporating a club, however the majority of clubs will be
incorporated as a non-profit association under the Tasmanian Associations Incorporation Act 1964.
An exception to this are larger organisations such as football teams and umbrella associations, which
are incorporated as limited liability companies under Corporations Law. Incorporating under
Corporations Law is only necessary where the club is involved in extensive trading activities. This
method of incorporating involves greater expense and formality.
Corporations Legislation (Companies Code 1982)
The limited liability company is the most sophisticated form of sporting organisation. A consequence
of greater nationalisation and internationalisation of sport is the increasing number of sporting
entities adopting trading and commercial objectives. The most common form of company adopted in
a sporting context is the company limited by guarantee. This form of entity has the advantage of
incorporation under Corporations Law as well as exempting the sporting entitys income from tax
assessment under s 23(g) of the Income Tax Assessment Act.
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Features of incorporating under Corporations Law.
All members forming the company become members who guarantee to contribute to an amount
agreed upon in the memorandum of the association if the company is wound up
Members dont own shares and arent required to make contribution unless winding up occurs
and company funds are insufficient
As the company is prohibited from altering the amount of guarantee (either by amendment or
agreement) it is unsuitable for ventures likely to change
The company is a separate legal entity, able to conduct activities nation-wide without further
registration, declare profits and perhaps distribute profits to members
The company is required to meet specific accounting and disclosure conditions, such as
conducting formal meetings and recording its minutes The company must comply with detailed
procedures on appointing directors and officers, and documenting any changes in company
objectives
Directors are liable to contribute a year subsequent to quitting
The Associations Incorporation Act
Associations Legislation gives non-profit organisations the benefit of incorporation without the formality
or rigidity imposed by Corporations Law. It provides a favourable alternative for entities wanting limited
liability protection but not a company-like arrangement.
Club activities are required to be governed by statement of objects and rules (more formally referred to
as a club constitution or articles of association) as well as having a committee to conduct club affairs,
encouraging flexible management.
What clubs are eligible to incorporate under the Assoc.s Incorporation Act?
Any club or association formed or carried on for the purposes of participating in sporting or recreational
activities with at least five members will be eligible to incorporate, as long as the association:
Is not carried on for object of trading or securing pecuniary gain for its members
Does not have capital divided into shares or stock held by members
Does not hold property in which members have a disposable interest
What is legally required of an incorporated association?
Incorporated associations are subject to government supervision and regulation. The provisions impose
several accounting and reporting obligations such as:
The development of rules dealing with such matters as qualification for membership,
subscriptions, funding, procedures to be followed in managing the club, conduct in general
meetings, alteration of the objects or purposes and rules of the association, taking disciplinary
action against members and disposal of surplus property on winding-up. A copy of these rules
must be provided when applying for incorporation.
The appointment of a public officer to provide a contact point between the club, government and
community (usually the person who applies for incorporation is deemed to be the public officer)
The appointment of a committee responsible for managing the club. Any changes in committee
composition must be notified to the relevant authority.
Compliance with general and annual meeting requirements. At the Annual General Meeting the
committee must submit an accurate statement of the clubs income, expenditure, assets and
liabilities.
The lodgement by the public officer of club accounts with the relevant authority.
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Does the prohibition on profit making mean incorporated clubs can not fundraise?
Not if the money raised goes towards the purpose for which the club was formed. Once a club is
incorporated as a non-profit association under the Act it is prohibited from passing on pecuniary
profits or gains to members. Incorporated associations are also prohibited from operating primarily
for trading or other business purposes. This does not prevent the running of stalls or other fundraising
activities as a means of raising money to support the clubs sporting or recreational activities. It is
important to carefully read provisions sections 21 to 26A of the Act, which set out the general
powers of the incorporated association, restricting certain conduct.
What are the legal requirements for winding-up the club?
An incorporated club can only be wound up voluntarily by its members if they are given the power
to do so by the associations rules or if they make the necessary amendments to the rules before the
association is dissolved.
In the case of compulsory winding up the Act provides that provisions under Corporations Law
apply, which allow dissolution if the club is unable to meet debts, if the association has ceased to
exist, or if just and equitable grounds can be made out.
Issue 2 : Legal status and corporate liability
Related to the issue of legal status is the clubs liability under contract and tort. The effect of
incorporating is to give the club legal status, which means that the club is able to sue and be sued in
its own name. The club as an artificial entity owes a duty of care via its members, representatives and
employees, based on the concept of vicarious liability.
What is a committee members personal liability?
Committee members are afforded some protection as a result of the limited liability provision in
section 27. Once incorporated, individual members are insulated from exposure to the loss of
personal assets should a liability arise. It will be the club itself which will have to satisfy any claim or
liability so long as the members have acted within their authority.
It must be noted that there are exceptions to the limited liability principle. For example if certain
provisions op the Act are not complied with, members can be stripped of this protection. Provisions
dealing with the failure to lodge prescribed notices, hold an Annual General Meeting or fulfil other
formalities attract serious consequences. The Act expressly states that specified persons responsible
(such as the public officer or committee) will be liable for pecuniary penalties as specified in the Act.
Furthermore breaches of prohibitions such as seeking funds from the public, share hawking (ss 21,
26A) or trading and making a pecuniary profit for its members, may jeopardise the clubs continued
legal status, effectively exposing members to financial penalty and loss of limited liability.
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What responsibilities and liabilities are involved in being a committee member ?
Parliament regards the relationship committee members have with the club as creating a fiduciary
relationship. To avoid the possibility of this position being abused, the Associations Incorporation
legislation has been amended to impose duties owed by Directors under Corporations Law upon
committee members. The following duties now apply to committee members and directors alike:
A duty to act honestly (section 232(2))
A duty to exercise reasonable care and diligence in exercising powers (section 232(4)) This
duty requires the committee member to possess and display a degree of skill reasonably
expected from a person with his or her knowledge and experience, obligating him or her to
attend board meetings and actively participate in management.
A duty not to make improper use of information acquired by virtue of the members position,
or to gain directly or indirectly an advantage for himself or others or the club (section 232(5))
A duty not to make improper use of position, or to gain directly or indirectly an advantage for
himself or any other person that would have an adverse affect on the club (section 232(6))
It should be noted that both past and present officers have a duty to disclose and deliver any
property or books of the club. Failure to do is an offence. Similarly, the commission of any fraudulent
acts relating to the concealment of money owed, altering books and otherwise interfering in company
affairs is also an offence.
The responsibility of management includes a responsibility to ensure that personal duties and
obligations fulfil statutory requirements and are in the interests of the club. It is crucial for directors,
committee members and other administrators to be actively involved in the clubs decision making
and keep informed of the financial status of the club to minimise and avoid potential liability. In
particular the following measures should be implemented:
Administrators should ensure clear instructions are provided to employees and members
(especially coaches and players) regarding the nature of obligations, likely risk of their conduct
exposing them and their club to liability. It is necessary to ensure coaches are aware that if
their instructions encourage breach of rules or industry standards, the club can be held liable
for injury or damage.
Administrators and committee members must develop good information dissemination
systems to ensure coaches and managers are aware of safety information that minimise risk of
injury. Where employment contracts are concerned, the contract should expressly state the
circumstances in which the club will be liable for conduct of employees (coaches and players).
Is the club liable for the conduct of coaches and players ?
Yes. Committee members need to be aware as administrators and officers of the club that the club
can incur liability for the actions of its agents, such as players and coaches. The principle of vicarious
liability means that club liability arises in relation to acts carried out in the course of employment, or
activities closely connected enough to be attributed as employee duties.
The threat of liability for actions of players and coaches is clearly illustrated by New South Wales
Supreme Court decision where a rugby league player and his club were held liable for injury to an
opposing player as a result of an illegal tackle. (Rogers v Bugden and Canterbury Bankstown Rugby
League Club (1990) ). Liability of the club was based on the authorisation it gave to the player to
use force during the game. The application of excessive force actually used by the player in the illegal
tackle was found to be still connected with his employment.
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Sporting clubs may also be held responsible for any liability arising out of coachs instructions. In
OBrien v Mitchell College of Advanced Education (1985) NSWSR, Yeldham J decided that the
coachs instruction to employ a particular tactic in play was responsible for the paralysis of a player.
A clear message on the importance of distributing information and encouraging communication was
shown in Watson v Haines (1987) Aus Torts Reports, where an injury sustained by a student in a
school football match was attributed to the failure on the part of the NSW Department of Education
to distribute information on neck injuries to schools.
Case studies
Q: Our incorporated tennis club was experiencing financial difficulties that were not fully realised
at the time. The committee decided to raise some extra cash by holding a dance. The club
failed to properly cost the event, which ran at a loss. The club now owes more money to
outside parties. As a committee member will I be personally liable if the club does not have
enough funds to meet its debts?
A: All club members are protected by the concept of limited liability under the Associations
Incorporation Act. However, Section 24A applies duties to committee members as if they
were directors of a company, bringing the real possibility of a committee member incurring
personal liability.
As the liability was incurred in circumstances where the clubs financial status was uncertain
the application of corporations law may make the committee members liable for
breaching their duty to keep informed of the financial position of the club. The extent of
committee members obligation to keep informed of the financial position of the club was
illustrated in Statewide Tobacco Services Limited v Morley (1990) 8 ACLC 827. This case
held that even where a director takes no part in management of the company that continues
to incur debts and fails to obtain regular trading accounts for the company and the director
has conferred authority upon another to incur debts on behalf of the company, the director
has committed an offence and may be liable to a third party for outstanding debts.
In the tennis club example, by failing to inform themselves of the extent of the clubs
financial difficulties before undertaking more obligations, committee members did not fulfil
their duty to exercise care and diligence. Combine this with their subsequent failure to
properly cost the event and there is a real likelihood of the committee members being
personally liable for any debts.
Q: If the club treasurer embezzles club funds, are all the members liable?
A: The treasurer has breached their fiduciary duties imposed under section 24A of the
Associations Incorporation Act and may be found guilty under the Tasmanian Criminal Code,
resulting in the loss of any limited liability protection they may have had. Other members will
not be liable provided reasonable financial controls were in place.
Insurance for officer negligence should be a standard part of a clubs insurance package.
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6. THE CLUB AS AN EMPLOYER
Key legislation
Workers Rehabilitation and Compensation Act 1988
Workplace Health and Safety Act 1995
Trade Practices Act 1974 (Cth)
Industrial Relations Reform Act 1993 (Cth)
Conciliation and Arbitration Act (Cth).
Fringe Benefits Tax
Income Tax Assessment Act 1936 (Cth)
Superannuation Guarantee (Administration) Act 1992 (Cth)
Superannuation Guarantee Charge Act 1992 (Cth)
General
The terms employment law and industrial law basically refer to the same body of law, which is
made up of equitable remedies, awards and industrial agreements, pronouncements of industrial
tribunals, custom and practice, terms presumptively implied under common law and rules and terms
incorporated or imposed by various pieces of pro-active industrial legislation.
Legislation
Provides basic protection and rights on issues such as safety requirements in the work place, annual
holidays, long service leave, and employers obligations for superannuation.
Industrial awards
Set minimum standards and legally binding orders based on a classification system.
Case law
Courts protect the rights of those with agreements to work by interfering where there is a contract of
employment. The body of rules developed are referred to as implied terms of a contract. A contract
is required before the court can enforce its terms. Those working without a formal contract of
employment (for example independent contractors) must ensure their arrangements are clearly
defined to benefit from this protection.
The issue of who is protected by the various Acts is a key issue for sport and recreation organisations,
because most participants are volunteers and the statutory obligations of clubs towards such persons
are often blurred. In a sporting context, who is defined as an employer and employee in the eyes of
the law? Legal relationships are not always clearly identifiable, and the following questions may arise:
Are voluntary workers recognised and protected at law?
Is an employment relationship treated differently from that of a volunteer?
Are there distinct legal consequences between the two relationships?
Legal relations between clubs and third parties come in a variety of forms. The working environment
and working arrangements are often informal, confusing the issue of who is a worker and who is not.
People may perform work or services for a club, but because at law these terms are given a specific
legal meaning, only certain persons who perform work will be defined as workers for the purposes of
the relevant legislation.
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Glossary
Employment relationship
An Act will often give a precise meaning to the phrase employment relationship. The majority of
pro-active legislation, such as Workers Compensation legislation, define employment similarly.
Generally if an employment relationship can be found to exist under one Act, it will attract
provisions of other Acts concerning employees and employers. The definitions of employer and
worker within the Workers Rehabilitation and Compensation Act are essential to determining
whether legal relationships create legal duties for sporting organisations.
Worker
The Act refers to a worker as a person who has entered into, or works under, a contract of service or
training agreement with an employer. The contract may be express or implied, oral or in writing, and
used in relation to a person who has been injured or is dead. The term also includes the legal personal
representatives or dependants of that person or other person to whom or for whose benefit
compensation is payable.
Employer
An employer is a person with whom a worker has entered into a contract of service or training
agreement, notwithstanding that that person may have temporarily lent or let on hire the services of
that worker to some other person. Employer includes unincorporated and corporate bodies.
Contract of Service
A contract of service is an essential ingredient in an employment relationship. Put simply, it is a
contract of employment.
Contract of Employment
A contract of employment or bargain is an agreement in which promises are exchanged. Essential to
a legally binding contract are:
A mutual intention on behalf of both parties to enter into a relationship intended to be legally
binding
Consideration for the services provided
Employer liability for injury
A combination of the following Acts holds employers legally responsible for injury to their
employees:
The Employers Liability Act 1943 makes an employer liable at common law where a worker
is injured as a result of an employers or an employees negligence.
The Workers Rehabilitation and Compensation Act requires employers to insure against any
compensatable injury to a worker
The Insurance Contracts Act 1984 (Commonweath) prevents insurers from compelling
employers to recover loss from negligent employees unless injury was caused by that employee
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Workers Rehabilitation and Compensation Act 1988
What is it?
Workers Compensation provides extensive coverage for workers injured in the course of
employment. It covers injuries that not only occur in the work place but also injuries that occur to
employees travelling to and from work. It entitles workers to full medical cover for accidents as well
as other weekly payments or lump sum payments of compensation for the injury. Among other
things the Act provides for the payment of all reasonable costs of rehabilitation programs or services.
The injury must be sustained in the course of employment. This is broadly defined in a sporting
context. In Commonwealth v Oliver (1962) 107 CLR, a government employee was injured during a
lunch-time cricket match. The employing authority did not prohibit the cricket but had prohibited
play at a particular part where the game took place. The course of employment included the lunch
break, and the prohibition as to where the cricket was to be played was thought not to be decisive.
An important aspect of the decision was that the injury took place on the employers premises.
In Commonwealth v Lyon (1979) 24 ALR a clerk suffered an injury while playing football in the
Sydney Domain for his work team. The event was officially supported and it was held that the injury
had occurred in the course of employment.
Who does it apply to?
The Workers Rehabilitation and Compensation Act 1988 applies to workers and employers which
fall within the legal meaning the Act gives to these terms (see above). It is difficult to state exactly
who is a worker in a sporting context as each scenario must be examined on its own facts.
Where there is uncertainty the following principles developed at common law operate as a template
to help simplify the process. Generally a worker must be distinguished from other persons who
work for a club such as volunteers and independent contractors. Only those relationships with a
contract of service will come within the scope of the Act.
What is a contract of service ?
A contract of service means a contract of employment. A contract for service differs from a contract
of service (or employment relationship).
Independent contractors have a contract for service and this relationship is excluded from the Act. If
a worker is not an employee then they are an independent contractor. A contract of employment
only requires evidence of one person agreeing to work for another for a reward (usually money), not
whether the parties themselves believed they were entering an employment contract, or having such
a contract in writing.
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If clubs are uncertain as to whether a worker is an employee or an independent contractor, the
following two tests are commonly applied:
Control test: If an employer has the power to tell the employee what to do and how to do it
there is evidence of a contract of employment. Control over work includes such things as
giving direction, training, taking the responsibility for any loss, and the power to specify place
of work. In contrast an independent contractor is told what to do but not how.
Delegation test: If a person is at liberty to pass on or delegate assigned work they are not likely
to be employees. Another determinant is whether a person undertaking work carries on their
own business or is working for someone else.
When applying these tests to determine whether there is a contract of service, all circumstances
should be examined and clubs should ask the following questions:
How is the money paid?
If there are regular payments this is likely to indicate an employment relationship as apposed
to a lump sum or progress payments. Look to aspects such as the rate of pay, how the pay rate
is struck, who determines it, overtime, travel, site allowances, sick leave, annual leave, long
service leave, public holidays, car use, free transport, bonuses, free petrol and so on.
Is there a set workplace?
Workplaces in employment relationships usually do not change whereas independent
contractors are usually at liberty to choose their place of work. Other indicators are who
provides power, telephone, floor space and shelter.
Are there set work hours?
Employees will usually have to comply with set work hours as opposed to other working
relationships where workers are able to set their own. Control over time includes starting and
finishing, regularity, breaks, absences, time off, specified days, travelling, continuation and
limitation.
Is income tax deducted from wages?
Tax is deducted from wages, whereas independent contractors pay their own.
Does the club pay workers compensation?
If workers compensation is paid for a group of workers this suggests of an employment
relationship.
Although many of the above indicators of a contract of service are difficult to apply to a sporting
context and fail to define accurately the type of relationship likely to arise a sporting context, the
idea of control is the most useful determinant. It is accepted that although someone may not
control the work of someone else, if the club has the right to control the work, there is a distinct
possibility of an employer/employee relationship.
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Volunteers
The second class of persons the Workers Rehabilitation and Compensation Act applies to, which has
some relevance in a sporting context, are volunteers. The Act does extend protection to volunteers
however the relevant section also qualifies who is a volunteer for this purpose.
6B. (1) Persons of a prescribed class who voluntarily perform work of a prescribed class which is of benefit
to the State are
taken to be workers employed by the Crown.
Section 6B(1) brings only volunteers of a prescribed class within the ambit of the Act. As yet there is
no clear indication that persons voluntarily performing work for sporting organisations (including
those in administrative or fundraising capacity) come within the meaning of a prescribed class.
Players
The third class of persons the Act makes an express reference to is of specific importance in a
sporting context. Section 7 excludes players from the meaning of worker within the Act;
7. A person is deemed not to be a worker within the meaningof this Act while he is, pursuant to a contract-
(a) participatingas a contestant in any sportingor athletic activity
(b) engaged in trainingor preparinghimself with a view to his so participating, or
(c) travellingin connection with his so participatingor beingso engaged - if, under that contract, he is
not entitled to any remuneration other than remuneration for the doingof those things.
Thus, even if players work under a contract of service for the club, the fact that they do so in the
capacity of a contestant in a sporting activity means that they are not covered by workers
compensation in the event of an injury.
Volunteers and the club
Volunteer workers are not workers as there is no legally binding contract between the volunteer
worker and the club. Why?
First, no mutual intention exists on behalf of both parties to enter into a relationship intended to be
legally binding.
The existence of a mutual intention distinguishes situations where one person will perform work
for another on a voluntary basis for reasons which are fundamentally social, political, religious, or out
of filial duty or compassion (Bradley v Bradley [ 1978] ALLR 168) For most volunteers there is no
intention to create legal relations and therefore mutual intention will not be satisfied.
Second, there is no consideration for the services provided.
Consideration can exist in a variety of forms but the most obvious and common will be a promise to
pay wages. Again voluntary workers will be unable to satisfy this element as they usually do not
receive money for services provided as they are provided for reasons other than personal gain. There
will be no consideration if the person is motivated by altruism or non-cash benefits. The voluntary
worker at sporting club fundraising events such as fairs, charities and manning stalls, or the voluntary
worker on the committee generally works for another as a favour.
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What protection is afforded to volunteer workers?
For most people performing work for the club, the club will not owe the usual statutory duties
framing employment relationships. But the absence of a legally enforceable contract does not mean
the club is immune from obligations. Although the voluntary worker receives no payment and does
not intend legal relations nevertheless a central aspect of employment is observable - subjection to
control.
In Johnson v Lindsey [ 1891] AC 371 it was recognised that a person, who is not under any paid
contract of service may, nevertheless, have put himself under the control of an employer to be
regarded as such. This ... is the position of a volunteer. Volunteers are not in a contractual
relationship with the club, but nevertheless a legal relationship does exist. Although the relationship
is not identical to that of employer and employee, the court imposes minimum standards upon the
organisation, assimilating the volunteer to the position of employee. The result is that volunteer
workers are owed a duty of care and protection under common law.
Chapman v Hearse (1961) 106 CLR 112 established the rescuer principle. The rescuer principle
holds that the presence of a volunteer rescuer at an accident scene is reasonably foreseeable,
therefore injury to such persons is also a foreseeable consequence of the negligent act that caused the
perilous situation. McCabe v Russel aligned volunteers of sporting bodies with rescuers by extending
protection to an ordinary person who lacked special training but had volunteered help, even though
help was not requested.
Clubs need to be aware that their responsibility extends not only to those under their control or part
of the club, but also to those unassociated with the club. This broad duty of care owed to volunteer
workers necessitates clubs taking out comprehensive insurance policies.
Players and the club
Players require a network of organisations and some formal link. In team sports the link will be the
agreement with a club that creates the prospect of inclusion in a team. The usual form of agreement
is a player contract. If the agreement is a contract of employment between the club and the player
(providing all the elements have been satisfied) than such players are treated as employees. Although
such people are workers, section 7 of the Workers Rehabilitation and Compensation Act expressly
excludes the operation of the Act to them.
Amateur players do not have a contract of service or contract for service with the club. Although
they may be bound by membership rules and clearance systems there is no contract of employment.
Amateur players have the legal status of volunteers and are owed a duty of care at common law but
are not covered by protective legislation.
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Case studies
Q: I was injured at work. Am I required to prove negligence?
A: No. The Tasmanian workers compensation scheme entitles a worker to compensation if the injury
arose out of and in the course of employment. If your employer was negligent at common law you
may be entitled to claim damages at common law.
Q: Our team has to play hockey on grounds that are not fenced off from the public and often have
potholes. What is the clubs liability for a visiting team member if she falls and breaks a leg during
the game? As a committee member of the visiting club, would I incur any personal liability for the
accident ?
A: If the ground is not kept up to a proper standard, the occupier or owner have breached the duty of
care owed to persons entering the sports ground. There maybe some grounds for club liability as
the club will owe players a duty of care at common law. The fact that the club allows the team to
play upon grounds which it knows are hazardous means the club breaches its duty of care, as injury
is a foreseeable consequence of playing in hazardous conditions. If the club is incorporated,
committee members will be protected at law from personal liability as a result of limited liability
under the Associations Incorporation Act.
Q: Waterloo Netball Club Inc. held a fair to raise funds for the club. Parents of the players volunteered
their time to help run stalls and events. Jenny, a parent, was injured and burned when helping in a
hot soup stall. The club has been informed that she will require several skin grafts. What is the
legal position? Is the club responsible for Jennys costs?
A: As Jenny is a volunteer, no contractual relationship exists between her and the club, so Workers
Compensation legislation does not apply. As a volunteer worker, Jenny is owed a duty of care by
the club. This means that Jenny will be able to instigate civil proceedings and claim breach of duty
of care owed to her.
A court may award her damages and costs, which may include compensation for future loss as a
consequence of the injury, as well as medical and other costs. As the club is incorporated the
members will not be liable, however Waterloo Netball club Inc. will be.
When conducting such events it is essential that clubs take out public liability insurance or
accident cover for volunteer workers.
Q: Our coach is an independent contractor. Do we owe him a duty of care ?
A: No. Independent contractors do not work under a contract of employment and are not under the
clubs control. They are covered by the duty to provide a safe work area, including place of work,
plant, equipment and premises.
Q: We pay our coach $70 per week for coaching the team. This involves three one-hour sessions
during the week and a game on Saturday. We have no written contract with the coach. Is the coach
an employee?
A: Although there is no formal written agreement between the club, applying the control test, there is
some support for the conclusion that the coach is working under a contract of service with the
club. The set hours of coaching and the regular payments both indicate a contract of employment.
On that basis, the club will come into contact with Workers Compensation legislation, Workplace
Health and Safety legislation, Superannuation legislation and Industrial Relations legislation. If the
club is unaware that they are employers for the purposes of this legislation they are likely to be
liable for breaching several Acts and should seek legal advice.
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Occupational Health and Safety Act 1995
What is it?
Occupational Health and Safety legislation imposes duties upon employers to:
Promote occupational health and safety in the workplace
Provide systems of work that are safe and without risk to health
Prevent industrial injuries and diseases
Protect the health and safety of the public in relation to work activities
The imposition of a general duty of care or legal responsibility is limited by the term reasonable
practicability. Practicable means that the activity must be possible or capable of being done safely. In
other words the duty must be carried out as far as is reasonably practicable, meaning that a balance
must be struck between the degree of risk inherent in a particular activity or environment against
measures taken to control it. Hence, increased risk carries with it substantial increases in the time,
effort and cost expected to reduce or eliminate that risk.
In applying the reasonable practicability test the following must be taken into account:
The nature of the employment or particular aspect of the employment concerned
The severity of any potential injury or harm to health or safety that may be involved and the
degree of risk that exists in relation to such potential injury or harm
The state of knowledge about the injury or harm to health or safety that may be involved
The risk of the occurrence of that injury or harm to health or safety
Any methods of preventing, removing or mitigating that injury, harm or risk
The availability and suitability of ways to prevent, remove or mitigate that injury or harm to
health or safety or risk
Whether the cost of preventing, removing or mitigating that injury or harm to health or safety
or that risk is prohibitive in the circumstances
The Act imposes a general duty of care upon employers and employees. According to section 9 of the
Act, employers owe the following persons a statutory duty of care:
Employees (refer to explanation above)
Any person other than an employee of the employer or a contractor
Any person employed or engaged by a contractor
Independent contractors
By including those persons who are not employees, this Act imposes a wider duty on employers than
Workers Compensation legislation.
At any workplace, the employer must ensure that a contractor engaged to perform work and any
person a contractor engages is safe from injury and risks to health. People engaged by contractors and
employers also have a duty to comply with health and safety requirements of the workplace.
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Failure to comply with the provisions of this Act will result in hefty fines for the incorporated club or
committee members of unincorporated clubs.
Satisfying a legal duty may include safety measures such as:
Training or retraining
Attendant care services
Counselling
Vocational guidance
Modifications to a workplace, residence or motor vehicle
There is no maximum set for rehabilitation expenses, but the expense must be reasonable and
necessary. The duties set out in the Act have always existed under common law and its application to
people in the workplace are detailed in Section 9 of the Act.
Does an employer have to provide first aid kits?
An employers duty of care under the Tasmanian Workplace Health & Safety Act 1995 is to provide a
safe and healthy working environment. This would require the club to provide a first aid kit
accessible to all employees. In a large organisation there should be several kits in strategic places. The
kits should be updated regularly by an accredited first aid provider (St John, Red Cross) and first aid
training should be provided to several employees.
Trade Practices Act 1974 (Cth)
What is it ?
The purpose of Trade Practices legislation is to stimulate and promote competition by prohibiting
contracts, arrangements or understandings that have the purpose or likely effect of substantially
lessening the competition. Sections 45 and 47 prohibit contracts containing exclusionary provisions
or engagement in exclusive practices. Similar provisions are found within the Tasmanian Fair Trading
Act 1990.
The club may come into contact with provisions of the Act if contracts made with players are unduly
restrictive.
The Trade Practices Act only applies to incorporated associations.
The court will determine whether a sporting body is a corporation by look at its activities rather than
the purpose for which it was formed. Presenting a football match as a commercial venture for profit
to the promoting body is regarded as an activity of trade (R v Federal Court Australia; ex parte WA
National Football League). The importance of being aware of the legal meaning of corporation is
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that many involved in the club are unlikely to identify the club as a trading corporation whose
activities and conduct may attract the Trade Practices Act.
It is not possible to define what will bring a sporting body within the scope of this legislation. As
there are no qualifying criteria to enable sporting bodies to estimate for themselves whether their
activities are substantially trading, it leaves the application of this legislation uncertain.
Do player clearance systems breach Trade Practice Legislation ?
Restraint of Trade in relation to player rules and contracts is a controversial topic. Many players jump
to the conclusion that if the rules of a club or association restrict players from moving from one club
to another, there is a breach of Trade Practices legislation. The principles applicable to answering this
question were dealt with in Adamson & Ors. v New South Wales Rugby League Ltd & Ors (1991)
ATPR 41-084.
As a general principle, certain contractual restraints are justifiable so long as the restraint serves a
legitimate and legally acceptable purpose. An example is the AFL Player Rules, which expressly set
out the rationale for restraining the freedom of transfer of players. The objective of clearance rules
and contracts of service are to ensure the maintenance of strong and well matched competition.
Restraint will be lawful if it is for the purpose of achieving these and other similar objectives.
Two clauses in the AFL player contract are standard to many team sporting contracts:
Clause 7
The player and the club agree with the AFL to comply with and observe the Rules and Regulations of the
AFL, Player Rules, the Memorandum and Articles of Association of the AFL. It is hereby acknowledged by
the player that the Rules restrict the freedom of players to transfer from one club to another, restrict the total
football payments that the club may give to or apply for the benefit of its player and provide for the players
and their associates.
Clause 2.6
The player shall:-
Obey all Rules and Regulations, resolutions and determinations of the club and abide by the
Memorandum and Articles of Association of the club.
The decision in Adamson is believed to be an accurate summary of the law applicable to team sport
rules and regulations. As a result of the decision it would now be difficult for an applicant to
successfully impeach team sport labour market controls under the Trade Practices Act, specifically
Section 45(2). According to Justice Hill the restrictions imposed by the rules do not come within the
ambit of either section 45(2)(a) or (b) of the Act.
As a matter of precedent it would be fair to assume that the provisions of the Trade Practices Act so
far as they concern players attacking restrictions contained in rules of professional team sports are of
limited use. Players in most sports where clearance systems operate are unlikely to be successful in an
action under sections 45 and 47 of the Trade Practice Act. Although this decision means clubs may
relax slightly over threats of legal action where restrictive clauses are in operation, they need to
ensure that these clauses are necessary, are not unduly restrictive and are rationalised according to
similar objectives.
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Industrial Relations Reform Act 1993|
Conciliation and Arbitration Act
General
As employers, clubs are governed by the Industrial Relations Act and the Conciliation and Arbitration
Act. Both establish specialised tribunals (Commonwealth and Conciliation and Arbitration Commission
and the Tasmanian Industrial Commission) to arbitrate in industrial disputes and set industrial awards. An
industrial dispute refers to any dispute between an employer and employee about work conditions and
terms of employment.
Both commissions make awards of wages and conditions and those set by the Tasmanian Industrial
Commission apply through out Tasmania to all persons and all circumstances specified in the award
(unless covered by a Commonwealth award). For example if a coachs wages are fixed by an award or
industrial agreement made under the Act the clubs as employer must pay the full amount (section 51(3)
Industrial Relations Act) An award classifies all the jobs in a particular industry and then specifies a
workers rights in each of those classifications. Employers are bound by law to the award.
Where there is doubt or dispute, the Workplace Standards Authority will organise appropriate interviews
or provide a referral to the appropriate jurisdiction.
What is it? (Industrial Relations Reform Act 1993)
If there is a contract of employment (see above) then the club will be regulated under the Industrial
Relations Reform Act 1993 (Cth). The Act imposes new minimum standards on terminating
employment. The club will only be able to terminate employment on valid reasons, which according to
the Act requires more than compliance with notice requirements. If the termination is harsh, unjust, or
unreasonable it will be invalid. Termination on the basis of temporary absence due to illness or injury,
union membership, race or sex discrimination will never be valid. If it is in relation to conduct or
performance of the employee, the employee must be given the opportunity to respond to the allegations.
If the club unlawfully terminates an employment contract the issue may go before the Industrial Relations
Court. The question the industrial tribunal will examine is whether the employee has been given a fair go.
In other words, has the employee been told about the problems, been given reasonable and clear warning
that he or she must improve, and been given reasonable opportunity and time to lift performance?
Whatever the reason for the dismissal, the tribunal will consider all circumstances. For example, the
employees age and length of service may be factors that influence the tribunals decision. The employees
previous work record with you could be another factor. And whatever reasons and factors come into play,
the tribunal will thoroughly examine whether the employee was given procedural fairness.
If the industrial tribunal does find that an employee has been unfairly dismissed, the employer could be
ordered to reinstate the employee and most likely pay wages to the employee from the time of
termination to the time of reinstatement. If the industrial tribunal decides reinstatement is inappropriate
or impractical, it could award compensation to the employee for the loss of employment.
Clubs should have measures in place to minimise the chances of an industrial tribunal deciding that it
acted unfairly in dismissing an employee.
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Case Study
Q: The club manager and one of our top football players have a tense relationship - it came to a
climax last week when the two had an argument and the manager told the player to leave
training and never come back. The player has a year remaining on his player contract with the
club and is threatening to sue the club? Where do we stand?
A: If the club manager fired the player for personal reasons it is likely that the termination
breaches Industrial Relations law. To validly terminate the contractual relationship the
termination needs to be based on valid reasons related to some aspect of employment. The
facts suggest that the footballer was one of the top players, so the termination was not related
to poor performance or conduct related to play. It is also unlikely that the formal procedure to
be followed in terminating employment was adhered to.
The matter may go before an industrial commission or court. If the club is incorporated the
club itself is the contracting party and will be liable to pay any compensation or damages. If
the club is not incorporated then the committee members may be held personally liable - the
club does not exist in the eyes of the law, so the contract is likely to be taken to have been
made with the committee members (Bradley Egg Farm v Clifford (1943) 2 All ER 378 and
Peckham v Moore [ 1975] 1 NSWLR 353 at 360-1).
Tasmania differs from other States, as the rules of the Supreme Court (Supreme Court Rules
(Tas) Order 54) enable an unincorporated non-profit association to be sued or sue in its own
name. This overcomes the procedural difficulties of outside parties instigating civil proceedings
against unincorporated clubs.
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Income Tax Assessment Act 1936 (Cth).
Fringe Benefits Tax
General
Increased professionalism in sport means clubs must pay greater attention to complex financial issues
and adequately plan their future requiring an understanding of tax laws in order to minimise club
exposure to tax. Much of the law applicable to every citizen applies in the sporting context, however
there are some specific rules to sport:
An averaging of income because of sportspeoples fluctuating income
Sporting clubs who meet specific criteria under legislation are often entitled to tax exemptions
Sporting clubs who pay salaries (even if only to one employee) whether it be to administrators or
sportspeople need to be aware of several other liabilities arising under State and Federal tax laws.
Federal employers must withhold Pay As You Earn (PAYE) Tax from an employees salary and submit
the withheld tax to the Australian Tax Office. Sporting clubs who contract foreign or non-resident
Australian sportspeople to compete in Australia will be liable to withhold tax on payments to those
sportspeople.
Income Tax Assessment Act 1936
Under section 23(g)(iii) of the Income Tax Assessment Act 1936 (Cth) a society, association or club
established for the encouragement or promotion of a game or sport is exempt from tax assessment.
Most sporting entities will have no problems qualifying for exemption under section 23(g)(iii) as the
section only requires:
The club to be involved in a game or sport (both non-competitive and competitive sports, and
non-athletic sports)
The club to be established to promote a game or sport, the test being the dominant purposes
test. This means clubs can have can have ancillary non-sporting purposes but the central
purpose must be in sport
Clubs who engage in providing substantial social facilities to the public are denied exemption under
section 23(g)(iii) according to Waratah Rugby Union Football Club Ltd v Federal Commissioner of
Taxation (1979) 79 ATC 4 and Cronulla-Sutherland Leagues Club v Federal Commissioner of
Taxation (1990) 90 ATC. However recently courts have not been so strict in applying this principle.
Large professional sporting organisations are generally unlikely to be exempt if only a proportion of
profits go towards support of sporting activities. They will be subject to income and capital gains tax
and their treatment will depend on organisational structure. It should be noted that the assessment
process is not sport specific - incorporated bodies will be assessed according to a corporate tax rate
and other forms according to an individual rate.
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Fringe Benefits Tax
FBT applies to all sporting bodies who provide benefits to persons qualifying as employees of the
organisation, even those exempt under s 23(g)(iii). Employees includes salaried players and benefit
is given a broad definition. All organisations are liable to pay FBT but non-profit organisations are
entitled to rebates.
Tax Ruling MT 2032 sets minimum earning rates for sports persons before FBT is applicable. It only
applies where a player is paid on average no more than $50 per competition over the season. Many
clubs, especially smaller ones, are unaware of these tax liabilities and will be technically liable for
penalties for non-compliance.
Are end of season trips subject to FBT?
Tax Ruling MT 2032 requires FBT to be paid on end of season trips and trophies provided to players.
In order for a benefit made to player to be taxable, there must be an employment relationship
between the club and players. Where trips are provided to amateur players who are not provided
with payments or only have the cost of training and travelling covered the club is not liable for FBT.
In the case of teams in minor competitions the funds that go towards paying for the end of season
trip are often an amalgam of the players own contributions, the results of fundraising, and club
profits. Such a trip is viewed as a co-operative social event rather than as a reward for services
provided by an employer.
Case Study
Q: Is it against the law for the club to provide players with slabs of beer as a reward for games
won ?
A: It is not against the law to provide beer to players so long as the players are not under the age
of 18 years. What will be illegal is if the provision of gifts attempts to evade tax obligations.
FBT will apply to all players who are under a contract of service and receive no more than $50
remuneration for services where payments go beyond the cost of training and travelling. The
fact that the payment is in a form other than cash will not exclude it from the operation of the
Act.
Further Information!
An excellent publication is available from the Australian Taxation Office at no cost :
* THE CLUB PACK A Taxation Guide for Clubs, Societies and Associations
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Superannuation Guarantee Act 1992 (Cth)
Superanuation Guarantee Charge Act 1992 (Cth)
General
Superannuation is a means of saving money towards retirement to ensure a reasonable standard of
living. The Superannuation Guarantee (Administration) Act 1992 (Cth) requires employers to
provide appropriate superannuation schemes for employees. If an employer fails to do so they
become liable to pay a separate superannuation guarantee charge to the government. The Act covers
all employees (full-time, part-time and casual) subject to particular limitations. It expressly includes
tax-exempt employers (otherwise exempt from tax), as employers liable to make tax contributions.
Major sporting organisations and many smaller bodies are likely to be liable to pay superannuation
guarantee contributions regularly. As superannuation is self-assessed those involved in sport need to
be generally aware of obligations to comply with the superannuation regime.
Who is entitled to superannuation contributions?
Section 12(8) of the Act defines employee to include sportspeople. The practical application of this
definition is set out in the Superannuation Guarantee Ruling 93/1. Superannuation contributions
must be made for employees under 65 years unless the employee is:
Below 18 years of age and works less than 30 hours per week
Has a salary or wages of less than $450 per month
Is carrying out part-time domestic work
For other employees the club must contribute a prescribed amount towards superannuation or face
an additional tax levy of 4% of payroll. There are also penalties for non-compliance with other
requirements under the Superannuation Guarantee (Administration) Act 1992 (Cth) and the
Superannuation Guarantee Charge Act 1992 (Cth)
What payments attract Superannuation Guarantee
(Administration) Act?
The Superannuation Guarantee Determination 93/11 regards appearance fees and prize money to be
salaries and wages and ordinary time earnings for the purposes of imposing superannuation
obligations on employers. However, player of the match awards, sportsperson of the year awards and
other similar awards are not deemed salaries and wages or ordinary time earnings.
An excellent publication on employment is available at a small cost from the Tasmanian Council of
Social Services (TasCOSS) :
About Emploment: The Basics - Information for Community Organisations on Basic
Employment Issues
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7. THE CLUB AS A FUNDRAISER
Key legislation
Gaming and Racing Act 1952
Local Government Act
Trade Practices Act
Fair Trading Act (Tas)
General issues
Almost all conduct relating to revenue raising is prohibited unless approval in the form of a licence or
permit is acquired. For some activities more than one licence or approval process may be necessary.
There are several forms of regulation and statutory rules that apply to any organisation undertaking
revenue raising activities. Apart from legislation regulating particular conduct or events, committees
must also remember provisions of the Associations Incorporation Act, in particular sections 21 and
26A. Both sections deal with the powers of an incorporated association and prohibit share-hawking
or raising money for the benefit of individual members. The prohibition on using proceeds for the
private gain of any person except by way of charity is reiterated in the Racing and Gaming Act 1952
Furthermore clubs need to be aware of general legislation which concern protecting the consumer
such as the Trade Practices Act (Cth) and Fair Trading Act (Tas).
Most legislation governing fundraising activities is in the form of delegated legislation (by-laws).
Under the Local Government Act local council have the power to require permits and licenses and
impose fines and conditions on obtaining these. The penalties imposed for breach of these by-laws
can be serious and costly.
Racing and Gaming Act 1952
This Act sets out the legal definitions of various gaming activities, including betting, games of chance,
lotteries, sweepstakes and tipping competitions.
The Act sets up the Tasmanian Gaming Commission as the relevant authority with the power to
impose and enforce conditions on those seeking permits and licences. The Commission publishes a
Guide Sheet for the Conduct of Trade Promotions which sets out requirements for various gaming
and fundraising activities. It is also clearly stated that the commission will instigate legal proceedings
against offenders to the Act.
Sale of liquor
The provision of alcohol at club meetings or functions at its own premises does not require a permit
or licence however general restrictions on the provision of alcohol still apply. Section 5 of the Liquor
and Accommodation Act prohibits the sale of liquor unless it has been authorised by a liquor licence
or liquor permit. The definition of selling is broad. Persons who sell liquor without authorisation
incur a fine of up to 40 penalty points.
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What approvals are needed to operate a bar?
The Licensing Board of Tasmania can grant one of five types of licences, depending on where and
how the liquor is to be sold. .
The Board has the authority to impose conditions on the granting of a permit or licence and there
are restrictions on who can apply. Other considerations the Board will take into account is whether
allowing sale of liquor will annoy or disturb other people in the area. Clubs should familiarise
themselves with such conditions before going ahead with any preliminary plans.
Permits and licences do not authorise the sale of alcohol to minors (persons under the age of 18
years) and persons who do so will be fined. Furthermore licensees have an obligation to prevent
others from selling alcohol to young persons.
What is required to run a raffle?
There is no legislation as such but clubs must apply to the Tasmanian Gaming Commission for a
permit when the retail value of the prize exceeds $500. Statutory fees apply, depending on prize
value. The Gaming Commission publishes guidelines on how to apply for a permit and the
conditions that apply. There are age restrictions on who can sell raffle tickets and the person applying
for the permit is held responsible for its proper conduct.
What is required to conduct a cake stall ?
If a club plans to sell cakes on a street (or viewable from a street), or conduct a fete or bazaar,
permission is required from the local council, Transport Tasmania and the police.
Legislation specifically dealing with food such as the Food Act 1998 imposes conditions and
regulations on the sale of food. (Note that the definition of sell includes disposal by way of raffle,
lottery or other game of chance..
The Act applies to all aspects connected with the preparation and sale of food and requires the
person who handles the food to meet health and safety standards. The Act imposes hefty fines for
failure to meet health regulations, for example a 100 penalty points for an incorporated club and 50
points for a person.
Games of chance - calcuttas, lucky envelopes, liquor tickets, cash tickets,
bingo, punchboard
Under the Racing and Gaming Act, a range of conditions and requirements apply to the operation of
such activities.
To conduct any of these activities, clubs must first obtain the appropriate permit from the Tasmanian
Gaming Commission. The person issued the permit will be held responsible for ensuring proper
conduct, including financial control of the activity.
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The Commission may make the permit subject to conditions such as the way in which the activity is
conducted, the time and place the activity takes place in, the maximum prices for chances, and
payments that must be complied with as legal requirements.
General prohibitions under the Racing and Gaming Act
For the purposes of the Act, faro, roulette or similar games and all games which use dice or other
devices such as backgammon are deemed to be unlawful. A game that is a lottery for the purposes of
this Part or that is in fact a game by way of lottery is an unlawful game and is stated to be so
whenever the expression unlawful game appears in any Act (section 89).
The club commits an offence if it allows the club rooms to be used for the purpose of unlawful
lottery or in a place in which the club is occupant. Furthermore if the club wishes to hold lotteries
they need to ensure that no persons under the age of 18 years take part. It is an offence to sell or
permit to be sold to a person under the age of 18 years any ticket, share, or interest in a lottery.
An excellent publication is available at a small cost from the Tasmanian Council of Social Services
(TasCOSS) :
Permits, Licences and Fundraising - A Guide to Legal Information for
Community Organisations
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8. THE CLUB AS A SERVICE PROVIDER
Key legislation
Trade Practices Act 1974
Fair Trading Act 1990 (Tas).
Copyright Act 1968
General
Consumer protection is a topical issue, with consumers more demanding, more aware of their legal
rights and more assertive in enforcing them. Issues such as copyright are likely to become increasingly
important at a local level as the pressure to remain attractive to the public requires effective
marketing strategies.
The key legislation in the area of consumer protection is the Commonwealth Trade Practices Act
1974 and the Tasmanian Fair Trading Act 1990. Both Acts protect the public as consumers from
exploitation by service providers and suppliers of goods.
Trade Practices Act 1974
Generally speaking, the Act prohibits unfair practices in the market place. In relation to the sports
club providing a service, the most frequently invoked provisions would be sections 52 and 53. Both
protect those involved in sports marketing by providing a cause of action against those who make
false associations with some event, team or athlete. Associations and sports particpants need to
ensure that they do not misrepresent their service or name.
Section 52 of the Trade Practices Act
Section 52 provides a general prohibition on corporations in trade or commerce engaging in conduct
which is misleading or deceptive or likely to be so. The section is only applicable to corporations if
the conduct in question involves postal, telegraphic or telephonic services.
Section 52 is attracted when there is some representation by way of deceptive or misleading conduct.
There is no requirement that a guilty mind or intention to mislead or deceive be present, or even that
there be evidence of consumers having actually been mislead or deceived.
Liability for breach of section 52
If a club uses a sporting personalitys photograph or likeness for promotional purposes without
permission they may be in breach of section 52.
Directors and others may be personally liable for breaches of section 52 by a sporting entity, if they
were in any way directly or indirectly party to the contravention. They may also be personally liable
according to Fair Trading legislation.
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Section 53 is more specific than section 52, and carries criminal sanctions.
Section 74 regulates corporations in their contractual relationships with outsiders imposing
qualifications on the standard of service they provide. The section states that in every contract for the
supply of services to a consumer there is an implied warranty that the services will be rendered with
due care and skill, and that any materials supplied in connection with those services will be
reasonably fit for the purpose for which they are supplied.
Fair Trading Act 1990 (Tas)
Provisions of the Fair Trading Act are similar to those of the Trade Practices Act.
Section 14 states that a person shall not, in trade or commerce, engage in conduct that is misleading
or deceptive or is likely to mislead or deceive.
An important distinction between the two Acts is that the Trade Practices Act also applies to
individuals. There is still the requirement that the conduct in question must involve trade or
commerce, but both terms are widely interpreted.
An individual purporting to contract on behalf of the club effectively holds themselves out as having
the authority to do so and that the club has the capacity to enter into the agreement. If the
representation is false, the individual may be held personally liable under these provisions, resulting
in the plaintiff recovering damages from the individual.
Copyright Act 1968 (Cth)
Do you distribute material advertising your club or sporting activities? Do you use a club logo or
promote your club under a particular name?
Legislation relating to activities such as advertising makes it an offence for traders or corporations to
represent goods or services as those of another trader or corporation, or pass its goods or services as
being connected with anothers. It can take a number of forms, for example where one club utilises a
mark or appearance that is distinctive of another.
Copyright Act 1968 (Cth)
The Copyright Act protects the rights of copyright owners over such things as text, artistic works,
musical works, computer programs and the reproducing material. Infringement of the Copyright Act
occurs where material is used without permission and is exclusive to the copyright owner. The
offending part of the material used does not have to be large - the Act refers to a substantial part
which means an important, distinctive or recognisable part.
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The Act gives copyright owners a right to bring civil proceedings against the club for an infringement.
The various remedies include interlocutory relief which can include orders giving power of search ,
seizure and injunctions to prevent actions which may defeat a judgment. Finally a club may be liable
to pay damages, prevented from further infringement (injunction) and possibly ordered to pay legal
costs of the other party.
If infringement is at a commercial level, a criminal offence will be committed. For example if
pamphlets are distributed, this will come within the ambit of commercial dealings, possibly attracting
a criminal penalty. However for a person or corporate entity to found guilty of committing an offence
it must be proven that the club knew or ought to have known the relevant issues, such as whether
the articles infringed copyright. Offenders can be fined a maximum of $60,500 or imprisoned for 5
years or both and an incorporation may be liable to pay five times this amount.
Reference List
Fewell M. (ed), Sports Law: A Practical Guide, (1995) LBC: Sydney
Kelly, G. Sport and the Law: An Australian Perspective (1987) LBC: Sydney
Sievers, A. S, Associations Legislation in Australia and New Zealand (1989) Federation Press: Sydney
Sports and the Law, a BLEC Workshop held in 1991, BLEC Books: Melbourne
Berns, S. Law of Groups: A Commentary on Company Law (1990)
Brooks, B. Contract Of Employment: Principles of Australian Employment Law (4th ed) (1992)
CCH
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RISK ASSESSING,
RISK FINANCING &
RISK MANAGING FROM
AN INSURANCE VIEWPOINT
In any type of organisation, whether it be sporting, business, leisure or domestic, there are risks to
which we are jointly and individually exposed.
These risks can be classified under three headings.
1. LOSS OF ASSETS
2. LOSS OF EARNING CAPACITY (INCOME)
3. LOSS FROM LIABILITIES INCURRED
In all three areas we can choose to carry the risk ourselves or alternatively transfer the risks to an
insurer in consideration for a payment of premium. It is important to realise that the existence of
risks and potential financial loss resulting therefrom continues to exist whether we choose to
purchase insurance or not.
Unless there is someone in the organisation who has the expertise and is willing to take on the
responsibility of arranging the correct insurance coverages, it is wise to appoint a Qualified Practising
Insurance Broker to advise and assist. All QPIBs belong to Registered Insurance Brokerages and are
subject to ongoing professional development assessment. Registered Brokers are required to carry
Professional Indemnity Insurance which will assist if you have been wrongly advised and suffer a loss
as a result of this.
In considering a Risk Financing Programme the first thing to establish is the risks to which the
organisation or individuals are exposed. This may sound simple, but needs to be looked at in a
systematic way to ensure that we are not running risks to which we do not realise we are exposed.
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1. ASSETS
First establish what assets the organisation has. This can be done by using a property schedule
(inventory) or perhaps a depreciation schedule. Another way is to photograph them. As well as
providing a visual record, photographs will also act as proof of ownership and assist in valuing the
property if it is lost or destroyed. Assets could typically consist of buildings, fittings, furniture,
equipment, money and stock. Equipment may be fixed or mobile and could include such things as
refrigeration, cash registers, computers, gaming devices and tables, lawn mowers, motor vehicles etc.
Assets may be damaged or lost by fire, explosion, storm and other water damage, impact, vandalism,
theft, misappropriation, breakdown and other forms of physical damage.
Having established what assets there are, it is then necessary to consider what would happen if they
were lost or damaged. Would they need to be replaced? Have you the money to replace them?
Should you purchase insurance to provide you with the money to replace them? Can you reduce the
risk so the likelihood of loss or damage is minimised?
It is fair to say that most organisations are unable to finance the risks in-house and seek to purchase
insurance to provide them with the protection they need.
The insurances that are available are usually provided in a combined package where the client can
choose the sections of cover they require. Your broker will assist with independent help in selecting
covers and insurers to underwrite the selected covers.
As the insurance coverages should be arranged on a Replacement Basis it is necessary to find out the
replacement value of the property of the organisation. In larger organisations it may be necessary to
get a qualified valuer to assist with this. Under some sections of a Combined Policy there may be a
Co-insurance Clause, which means that if you under insure you may be required to contribute
towards a loss or damage claim. Again your broker will be able to explain this.
Typical insurance covers available to cover assets are:-
(a) Industrial/commercial special risks
This is a combined insurance providing coverage for loss or damage caused by accidental
physical causes.
The insurance is arranged on full Declared Asset Values with sub-limits for theft, money and
other risks where full cover is not required. Usually these types of policies can only be
purchased for larger risks. The advantage is that all accidental physical losses are covered
unless they are excluded by the policy.
(b) Fire & specified perils
Covers for fire, earthquake, lightning, explosion, storm & water damage (flood is excluded
unless specifically purchased), impact and malicious damage.
(c ) Burglary
Covers loss following forcible entry to premises. Stock, other contents (other than money)
and damage to premises need to be considered.
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(d) Money
Covers loss or damage to money on premises during business hours, after business hours (not
in locked safe), in locked safe, in authorised private residence (usually for limited period only),
and whilst in transit to/from bank/premises/private residence.
(e) Glass
Covers accidental breakage of fixed external and internal glass. Extensions for damage to
stock, temporary repairs, signwriting and illuminated signs need to be considered.
(f) Employee/officer fraud
Covers fraudulent misappropriation of money or goods by employees or specified officers.
(g) Business special risks/general property insurance
Covers minor items against loss or damage by accidental physical causes subject to any policy
exclusions. Cover can be provided for specified items or unspecified items with a limit on any
one item.
(h) Engineering/machinery breakdown
Covers electrical or mechanical breakdown of specified plant. Breakdown has to occur, it is
not a maintenance cover. Extensions should be considered for deterioration of refrigerated/
frozen goods consequent upon breakdown of refrigeration plant.
(i) Electronic equipment breakdown
Covers breakdown of electronic equipment. Again it is not a maintenance cover and you need
to be aware of what the cover provides. Look before you buy.
(j) Motor vehicle, mobile plant and equipment
Cover can be arranged for full accidental damage, fire only or fire and theft. The geographic
area of cover may be Australia-wide or limited to the property.
(k) Watercraft
Covers against accidental physical loss or damage to the craft and motors etc. Be wary of any
limitations/restrictions in relation to theft and dropping off of outboard motors.
As mentioned previously beware of the Co-Insurance Clause which applies to (a) & (b).
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2. LOSS OF EARNING CAPACITY
If the organisation has a business as part of it, the earning capacity of the business could be
jeopardised if the property is partly or completely destroyed. In other words if the business is unable
to trade to its full capacity it would lose income and consequently would lose any profit margin and
most likely would continue to incur ongoing expenses associated with running the business. This loss
can be covered by insurance under a Business Interruption cover.
Cover provides compensation for loss of income as a result of risks insured against under Material
Damage Policies for Industrial/Commercial Special Risks, Fire & Specified Perils and Burglary.
Co-insurance applies so you need to seek advice from your broker in relation to calculating an
appropriate sum insured and indemnity period.
Likewise if a key individual dies, is injured or becomes disabled by illness, a consequential loss in
income may result. A variety of Death, Personal Disability or Business Expense insurance can be
purchased to give protection against these exposures. Again, seek the advice of your insurance
broker.
If voluntary workers assist the organisation, need to consider whether you have a legal or a moral
responsibility to provide some form of compensation if they are injured whilst they are providing
voluntary assistance. Disability Insurance covering all volunteers may need to be purchased.
You also need to consider the needs of the sports participants. You may need to arrange cost for
participants or at least be sure that they know they need to arrange their own cover if they consider
it necessary.
3. LIABILITIES
We will look at these under following headings:-
Various liabilities may attach to the organisation and/or its members of the organisation.
(a) Employees
If the organisation employs anyone under a contract of service it is compulsory to purchase Workers
Compensation Insurance to provide cover in terms of the Workers Compensation Act. These
employees may be either permanent, part time or casual in nature. Also care needs to be taken when
arranging any contract with a contractor to ensure that the contractor is not deemed to be an
employee if he or she is injured. This is not always clear. Under Workers Compensation Insurance
there is a five day disability excess and a $200 medical expense excess applies.
(b) Public
We each have a Duty of Care to one another. If the organisation or a member of an organisation
causes an injury or damage to property of a third party because of a negligent act or failure to take
adequate care then a liability to such third party could exist.
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Public Liability Insurance is available to provide protection against these risks. You should purchase a
sum insured adequate to protect against the exposures of the organisation. In practice this could vary
from $5,000,000 to say $20,000,00 or more.
The policy should be of a Broadform type wording and should include Products (goods supplied)
Liability. The policy should be extended to include Cross Liabilities, Member to Member Liability,
Goods in Physical Control (including Tenants Liability) and any Contractual Liability to which the
organisation is exposed. Most policies have an endorsement excluding injury or damage to property
of participants caused by another participant. Care needs to be taken in considering the exposure
that exists in this regard.
If you engage contractors make sure they carry adequate Public Liability Insurance and Workers
Compensation Insurance (if they have employees).
It is also of paramount importance that individuals carry their own Personal Liability Insurance, as
any action is usually taken against the organisation and the individual who committed the negligent
act.
As mentioned, Public Liability covers liability for injury or damage to property only. It does not
cover financial or other loss arising from negligent or inappropriate advice. If there is an exposure in
this area, Professional Indemnity Insurance should be considered. Discuss this with your broker.
(c ) Motor vehicles, watercraft or aircraft
It is normal to purchase liability cover as part of the usual Motor Vehicle, Boat or Aircraft Insurance.
This comes automatically as part of these policies. Liability for injury is not covered by the standard
motor vehicle policies. This is covered by the Motor Accidents Insurance Board if the vehicle is
registered.
It is vitally important to make sure that any vehicle which is used on a public roadway or
thoroughfare is registered, otherwise an uninsured exposure could exist. Liability for personal injury
to third parties which arises out of the use of a vehicle which does not require registration should be
covered by the Public Liability policy. Again check this with your Broker or Insurer.
(d) Coaching
The liabilities of coaches should be considered and insurance protection purchased if an exposure
exists. Such things as athlete injury, inappropriate training programs, libel & slander, athlete selection,
administration of first aid, inadequate supervision are some of the risks which could result in
litigation.
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(e)Directors and officers
The Directors and/or Officers of a club may be sued individually or jointly if they act
inappropriately and as a result of such actions someone suffers therefrom. Some examples of
matters which could give rise to actions are:-
by an employee for unfair dismissal, discrimination, sexual harassment
by creditors if the organisation trades whilst it is insolvent
by potential members to the organisation who have their membership application rejected
by members who have their membership unfairly terminated
Directors and Officers Liability Insurance may be able to be arranged to provide protection against
these risks. Also there is a cover which recently came onto the market called Employment Practices
Liability Insurance. As the name suggests the aim of this cover is to provide protection to employers
against actions taken against them by their employees for matters arising out of their employment.
(f) Legal expenses
Similar to the above an individual may be able to purchase Legal Expense Insurance to assist them
with legal expenses if they are unfortunate enough to have an action taken against them. This does
not cover any actual damages awarded, only the expenses involved in defending any action.
(g)Tax audit
Any organisation that pays or should pay tax may be subject to an audit by the Taxation
Commissioner. It is possible to purchase insurance to cover the costs of your accountants extra
involvement as a result of a tax audit. The policy does not cover any shortfall in tax or any fines
which may be imposed.
(h) Medical/Hospital Expense
If injury or illness strikes there will inevitably be costs associated with medical treatment. Medical &
Hospital Benefits Insurance may need to be considered to supplement cover given by Medicare.
(i) Pluvial
Insurance may by arranged to guard against the cost associated with the cancellation/postponement
of an event due to rain.
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NOW WHAT ?
So you have assessed the risks and taken out appropriate insurance covers. Whats the next step?
You have a moral and sometimes a legal responsibility to manage the risks to minimise the possibility
of losses or actions being taken against the organisation or yourself. In other words you need to
develop a programe of active risk management.
Money spent on risk management should be money well spent in keeping insurance premiums at a
realistic level as well as reducing the inconvenience and trauma suffered in some loss situations.
Use the following checklist in conjunction with your insurance broker or adviser. This should be
used each year to ensure that you are not inadvertently exposed to risks which you have not
identified.
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CHECK LIST
RISK IN SURE CARRY RISK
RISK MAN AGE
Assets (List, photograph, video)
Fire & Perils or ISR
Burglary
Money
Glass
Employee/Officer Fraud
Business Special Risks
Engineering/Machinery
Electronic Equipment
Motor Vehicles/Mobile Plant
Watercraft/Aircraft
Income
Business Interruption
Death
Personal Injury Disability
Personal Illness Disability
Volunteers Injury Disability
Participants Injury Disability
Loss of Match Payments (Disability)
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RISK IN SURE CARRY RISK
RISK MAN AGE
Liabilities
To employees
for Workers Compensation
through Employment Practices
Public & products Liability
Cross Liabilities
Member to Member
Goods In Physical Control
First Aid Treatment
Car Parks
Contractual Liability (if any)
Personal Liability (advised members to have)
Motor Vehicle Liability
Watercraft/Aircraft Liability
Professional Liability
Coaching Liability
Directors & Officers Liability
Legal Expense
Tax Audit
Medical/Hospital Expenses
Pluvial
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RESOURCES AND
INFORMATION
Introduction
The incredible diversity of sport and recreation make it impossible for any one person or text to have
all the answers to risk management in all situations, and likewise it is equally impossible to collate all
the necessary information into one resource.
It is not so much a matter of knowing all the information required, rather it is knowing where to find
the information.
Information may be obtained from a variety of sources. Some of the more obvious are listed below.
Printed Matter
reference books
professional journals
magazines
newsletters
brochures
conference proceedings
check bibliographies or reference lists for more sources
Internet
home pages
key phrase/word searches
Organisations
national sports organisations
state sporting organisations
peak recreation organisations
government departments
employee organisations
insurance companies
People
insurance brokers
risk management consultants
experienced players, coaches, & officials
solicitors
accountants
occupational health and safety professionals
sport & recreation consultants
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An important step in sourcing information is defining exactly what it is you would like to know.
Regardless of whether you are dealing with an organisation, a person, or a computer, being able to
succinctly and accurately define your needs will allow the best chance of getting the information you
are after.
Remember, that often the most convenient and best source of information will be experienced work
colleagues and fellow members of your organisation.
The information sources and resources listed in this section have been grouped as:
1. Print material resources by subject grouping
2. Internet sites
3. Organisations
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PRINT MATERIAL RESOURCES
Australian Standards (see attached catalogue)
Coaching and Officiating
Legal Responsibilities & Risk Management for Sports Officials - 1995
Australian Sports Commission
Sport Liability Insurance Brochures (coaches & officials)
National Officiating Program
Emergency & Critical Incident Management
HandlingEmergencies & Critical Incident Management - 1997
Department of Education & the Arts - Tasmania
Employment
About Employment - The Basics - 1998
Tasmanian Council of Social Services
Facilities
A Synopsis on The Duty of Care and Community Facilities - 1990
LOGOV Risk Management Services Pty Ltd
First Aid
What do you need for a Sport First Aid Kit & Treatment Room (brochure) - 1998
Sportsafe - Australian Sports Commission
Harassment
Harassment-free Sport - 1998
(a 4 booklet series of guidelines for athletes, coaches, sports administrators, and organisations)
Injury Prevention (see sports injury prevention)
Insurance
Sport Liability Insurance Brochures (coaches & Officials)
National Officiating Program
Junior Sport
Safety Guidelines for Children in Sport and Recreation - 1997
Sports Medicine Australia
National Junior Sports Policy - 1994
Safe Schools - An Injury Prevention Program for Primary Schools - 1997
Kidsafe Tasmania
NSW Youth Sports Injury Report - 1997
Health Promotion, Northern Sydney Area Health Service
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Modified Sport - A Quality Junior Sport Approach
Codes of Behaviour
Legal Matters
Legal Issues for Non-profit Organisations - 1996
Myles McGregor-Lowndes, Kieth Fletcher, A S Sievers
Sports Law - A Practical Guide - 1995
Mark Fewell
Legal Responsibilities of Outdoor Leaders - 1997
Tasmanian Outdoor Leadership Council
Sports Update - Negotiating Contracts - 1998
Rigby Cooke Lawyers
Occupational Health and Safety
Encyclopedia of Occupational Health & Safety (available from Workplace Standards Authority)
International Labour Organisation (see also http://www.worksafe.gov.au )
Older Adults
Safe Exercise for Older Adults
Dept. Arts, Sport, the Environment, Tourism and Territories
Outdoor Recreation
ManagingRisks in Outdoor Activities - 1993
New Zealand Mountain Safety Council (Cathye Haddock)
Operations Manual - Launceston Church Grammar School Outdoor Education Program - 1996
W. Baxter & J. Purtell
Outdoor Education Handbook - 1997
Dept. Education, Community & Cultural Development - Tasmania
Proceedings of the Risk Management in the Outdoors Conference - 1996
Outdoor Recreation Council of Australia
Ropes Course Safety Manual - 1989
Project Adventure Inc.
Safety in Outdoor Adventure Activities - 1992
Dept. School Education - Victoria
Legal Responsibilities of Outdoor Leaders - 1997
Tasmanian Outdoor Leadership Council
Perception of Risk
Philosophy & Perception of Risk - 1997
Owen Ingles for Office of Sport and Recreation, Tasmania
Permits, Licences and Fundraising
Permit, Licences and Fundraising - A Guide to Legal Information for Community Organisations - 1997
Tasmanian Council of Social Services
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Playgrounds
Look Before You Leap - Playground Inspection and Management - 1998
Kidsafe / Local Government (see http://www.greenweb.com.au/lookleap/html/for_councils.html)
Policy
National Junior Sports Policy - 1994
Pregnancy and Sport
The Pregnant Athlete and the Law - 1996
Risk Management
Australian/New Zealand Standard 4360: Risk Management - 1995
Standards Australia
Playingit Safe - 1998
Office of Sport & Recreation, Queensland
Sport Injury Prevention
Sportsafe Australia - 1997
How to Become a Sport Safe Club - 1998
Sports Injury Fact Sheets
Cricket, Softball, Running, Skiing, Snowboarding, XC Skiing, Equestrian, Baseball, Hockey, Netball,
Lawn Bowls, In Line Skating, Tennis, Australian Rules Football, Basketball, Golf, Gymnastics, Squash,
Soccer
Sport and Recreation Victoria (see http:\\www.vicnet.net.au\~sportrec\srvhome.htm)
Guidelines for Safety in Sport
Cricket, Gymnastics, Swimming, Weight Training, Track & Field, Medical Conditions
Sports Medicine Australia / MBF
Prevention of Sports Injuries
General, Football Codes, Cricket, Hockey, Basketball, Netball, Skateboarding, Rollerblading, Tennis
Royal Childrens Hospital - Melbourne (see http://www.reedbooks.com.au/rigby/hot/health/
royal.html)
Standards
Various Australian / New Zealand Standards pertaining to recreation - see attached catalogue
Standards Australia
Sunsmart
Guidelines for Sporting& Recreation Organisations - 1998
Tasmanian Health Promotion Council / Cancer Council of Tasmania
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Statistics
Data Dictionary for Sports Injuries
Sportsafe - Australian Sports Commission
Swimming Pools
Guidelines for Safe Pool Operation
Health & Safety Policies, Disposal of Infectious Waste, Standards of Plant Operator Quals, Water
Slides, Design of Spa Pools, Supervision of Changing/Toilet areas
Multi-Point Safety Assessment Program
Royal Life Saving Society of Australia
Swimming& Lifesaving
The Royal Life Saving Society - Australia
Australian Standards - various
Standards Australia
Taxation
Club Pack - a taxation guide for clubs, societies and associations
Information for Non-profit and Tax Exempt Organisations
A Guide to Keeping Business Records
A Tax Guide for New Small Business
Australian Taxation Office
Water Safety
Swimming& Lifesaving
The Royal Life Saving Society - Australia
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INTERNET SERVICES
Coaching
Australian Coaching Council
http://www.ausport.gov.au/acc/
Harassment in Sport
http://www.harassmentinsport.com/handbook.html
Occupational Health & Safety
Worksafe Australia - National Occupational Health & Safety Commission
Comprehensive information on workplace health and safety. Provides links to information & services
provided by each State Government OH&S Authority.
http://www.worksafe.gov.au
Playgrounds
Playground Inspection and Management - 1998
Kidsafe / Local Government (see http://www.greenweb.com.au/lookleap/html/for_councils.html)
Sport - general
http://www.ausport.gov.au/home.html
Sport Injury Prevention
Sports Injury Fact Sheets - Sport and Recreation, Victoria
Cricket, Softball, Running, Skiing, Snowboarding, XC Skiing, Equestrian, Baseball, Hockey, Netball,
Lawn Bowls, In Line Skating, Tennis, Australian Rules Football, Basketball, Golf, Gymnastics, Squash,
Soccer
http:\\www.vicnet.net.au\~sportrec\srvhome.htm
Prevention of Sports Injuries - Royal Childrens Hospital, Melbourne
General, Football Codes, Cricket, Hockey, Basketball, Netball, Skateboarding, Rollerblading, Tennis
http://www.reedbooks.com.au/rigby/hot/health/royal.html
Tasmanian Legislation
Comprehensive information on Tasmanian Legislation. See attached home page.
http://www.thelaw.tas.gov.au/whatson.html
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ORGANISATIONS
Association of Risk & Insurance Managers of Australia
PO Box 1263
Crows Nest
NSW 2065
ph 02 9439 6199 fax 02 9439 2001
Australian Society of Sports Administrators (Tasmanian Chapter)
PO Box 1154
Glenorchy
Tasmania 7010
ph 62730042 fax 62730191
Australian Sports Drug Agency
PO Box 345
Curtain
ACT 2605
Hotline 1800 020506
Australian Coaching Council
PO Box 176
Belconnen
ACT 2616
ph 06 252 1550fax 06 2521200
Australian & New Zealand Sports Law Association
PO Box 4252
Melbourne University
Parkville
Victoria 3052
ph 03 9344 6197 fax 03 9347 2392
Australian Society of Certified Practising Accountants
146 Davey Street
Hobart 7000
ph 6234 8244 fax 6223 5225
Australian Taxation Office
200 Collins Street
Hobart 7000
ph 132 861
Corporate Affairs Office (incorporation enquiries)
15 Murray Street
Hobart 7000
ph 6233 2199
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Health & Fitness Alliance Tasmania
136 Davey Street
Hobart
Tasmania 7000
ph 6224 8324
Human Rights & Equal Opportunity Commission
AMP Building
27 Elizabeth Street
Hobart 7000
ph 1800 001 222 or 6234 3599
Institute of Engineers Australia
Royal Engineers Building
2 Davey Street
Hobart 7000
ph 6234 2228 fax 6234 2216
Insurance Council of Australia
40 Murray Street
Hobart
Tasmania 7000
ph 6234 5744 fax 6223 1199
Legal Aid Commission of Tasmania
123 Collins Street
Hobart
Tasmania 7000
ph 1300 366 611 fax 6231 3553
Local Government Association of Tasmania
34 Patrick Street
Hobart
Tasmania 7000
ph 6231 0666 fax 6224 0086
Marine & Safety Tasmania
PO Box 607
Hobart 7001
ph 6233 8801 fax 6233 5662
National Sport Information Centre
PO Box 176
Belconnen
ACT 2616
ph 06 252 1679fax 06 252 1681
8.9
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Royal Australian Institute of Parks & Gardens
PO Box 603
Dickson
ACT 2601
ph 02 6241 4371 fax 02 62415817
Safety Institute of Australia (Tasmanian Division)
PO Box
Bicheno
Tasmania 7215
ph 6375 1535
Sports Management Association of Australia & New Zealand
221 Burwood Highway
Burwood
Victoria 3125
ph 03 9244 6167 fax 03 9244 6520
Sports Medicine Australia (Tasmanian branch)
PO Box 2063
Hobart
Tasmania 7001
ph 6295 1891 fax 6295 1891
Tasmanian Sport & Recreation Skill Centre
PO Box 1154
Glenorchy
Tasmania 7010
ph 62308256 fax 62308265
Standards Australia
237 Elizabeth Street
Hobart 7000
ph 6231 5885 fax 6231 5886
Tasmanian Council of Social Services (TasCOSS)
32/82 Hampden Road
Battery Point
Tasmania 7004
ph 6231 0755 fax 6223 6136
Tasmanian Outdoor Recreation Council & Tasmanian Outdoor Leadership Council
PO Box 1154
Glenorchy
Tasmania 7010
ph 62 308226 fax 62308265
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Tasmanian Sports Federation
PO Box 1154
Glenorchy
Tasmania 7010
ph 62 308624 fax 62 308265
Treasury & Finance, Department of (gaming & liquor licensing enquiries)
80 Elizabeth Street
Hobart
Tasmania 7000
ph 6233 3647 fax 6234 3357
Workplace Standards Authority
Hobart Launceston Burnie
30 Gordons Hill Road Henty House Reece House
Rosny Park 7018 1 Civic Square 7250 46 Mount Street 7320
ph 6233 8333 ph 6336 2516 ph 6434 6336
fax 6233 8338 fax 6334 4543 fax 6431 1606
HOTLINE 1300 366 322
Worksafe Australia - National Occupational Health & Safety Commission
92 Parramatta Road
Camperdown
NSW 2050
ph 1800 252 226
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CASE STUDIES
Introduction
Case studies provide a very practical demonstration of various aspects of risk management and more
importantly the opportunity to learn from the experience of others. History is a wonderful teacher.
The following case studies have been prepared in a concise form and provide sufficient information
for the purpose of a risk management lesson. All case studies have been checked and authorised by
the club or organisation principally involved.
Case Study Index
9.1 Case Study 1 - Multi-sport
Cradle to Coast - Event risk management plan
9.15 Case Study 2 - Surf Life Saving (fictional)
The concept of risk
9.18 Case Study 3 - Triathlon
Manage risks (or your event may cost you more than you think)
9.19 Case Study 4 - Local Government
Risk audit and review
9.20 Case Study 5 - Representative community committee
Inspection of new works - construction standards
9.21 Case Study 6 - Cricket
Safety & participation policy development - junior cricket
9.29 Case Study 7 - Canoeing
Sink or swim - Old fashioned thinking!
9.30 Case Study 8 - Multi-sport / Canoeing
So..you think you have insurance!
9.31 Case Study 9 - Local Government
Response and recovery (wildfire)
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CRADLE TO COAST
Risk Management Plan
This risk management plan was prepared in January 1998 for the Cradle to Coast Ultra Challenge.
It is presented in this resource as a case study to highlight the planning and implementation of risk
management.
Please note that the annexes have not been included but are available from:
Nic Deka
Office of Sport and Recreation
P.O. Box 647
Burnie 7320
Telephone: 03 6434 6358
Email: ndeka@osr.tas.gov.au
Please also note that the plan stops short of allocating responsibilities and stating time frames which
ideally should be included.
CASE STUDY 1
9.1
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CONTENTS
9.2
Introduction
Synopsis of the event
Organisational structure
Approach to risk management
Catalogue of risks
Generic to the event
Specific to each stage
Risk management strategies
Generic
Specific
Annexes
a Medical history / event experience form
b Bad weather limits and contingencies
c Memoranda of understanding
- i SES / stage 1
- ii water safety / stage 2 & 6
- iii river rescue / stage 5
- iv Hobart Cycling Club / stage 7
d Entry disclaimer
e Competitor briefing notes
f Briefing checklists
g Emergency response plans
h Media liaison plan
i Notice for bushwalkers
j Tasmania Police cycle race permit
- i stage 3
- ii stage 7
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Introduction
SYNOPSIS
The Paddy Pallin Cradle to Coast is an ultra endurance event that is one of the toughest challenges
on the multi-sport calender. It takes competitors over 380 km from Dove Lake at the base of Cradle
Mountain, to Hobart via the disciplines of mountain running, kayaking, and road cycling. The event is
now in its eighth year and is open to individuals and to two and three person teams. In recent years
competitor numbers have been around 50.
The event is always held on the March long weekend. Paddy Pallin, the outdoor equipment
manufacturer and retailer is the principal sponsor and has a long association with the event.
The stages of the event are:
Day 1
Stage 1 - Cradle Mountain to Narcissus run - 62km
2 - Narcissus to Cynthia Bay kayak - 15km
Day 2
Stage 3 - Cynthia Bay to Meadowbank cycle - 117km
4 - Meadowbank to Meadowbank Dam run - 4km
5 - Meadowbank Dam to New Norfolk kayak - 42km
Day 3
Stage 6 - New Norfolk to Bridgewater kayak - 16km
7 - Bridgewater to Collinsvale cycle - 55km
8 - Collinsvale to Salamanca Place run - 23km
ORGANISATIONAL STRUCTURE
The principal race organisers are Tim and Mark, who have organised the event since its inception in
1990. They operate as individuals and not on behalf of any organisation. They have overall
responsibility for management of the event and this year have allocated specific responsibilities to
organisational assistants.
These assistants are Richard, Matt, Genevieve, and Adam. They are responsible for several functions
including promotion, media liaison, and competitor liaison.
The principal sponsor Paddy Pallin has little input into management of the event, but is represented
by Nigel, their Hobart representative, when necessary.
9.3
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APPROACH TO RISK MANAGEMENT
As with any multi-sport event there are inherent risks associated with running the Cradle to Coast.
Risk management has been a significant consideration for the organisers in past years, although this
does not appear to be evidenced by documentation. The following plan is designed to provide a
rational and systematic approach to the management of risk for the event to ensure that a reasonable
standard of care is provided for competitors, marshals, organisers, sponsors, and the general public.
The plan is designed as an organisational resource to be amended and built upon in future years of
the event.
It should be noted that this plan has been prepared in consultation with the race organisers. The
process consisted of an initial meeting to identify risks, and subsequent meetings and consultation
with the organisers and support groups to clarify and document risk management strategies.
9.4
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Catalogue of risks
GENERIC RISKS (applicable to all stages and the race as a whole)
There is a risk that:
an accident to a competitor will result in litigation directed against race organisers 0.1
an accident to a competitor will result in a vicarious action against Paddy Pallin 0.2
an accident to a member of the public will result in litigation against race organisers 0.3
an accident to a member of the public will result in a vicarious action against Paddy Pallin 0.4
an accident to a marshal will result in litigation directed against race organisers 0.5
an accident will result in adverse publicity to Paddy Pallin 0.6
loss of equipment belonging to competitors will result in a claim against race organisers 0.7
loss of equipment belonging to marshals will result in a claim against race organisers 0.8
a competitor may start who has neither the ability or fitness to safely complete the event 0.9
media personnel will be ignored and a poor impression gained of the event 0.10
timing equipment will fail, impacting on the integrity of race results 0.11
race marshals will fail to get signs in place, or be in place at the right times 0.12
STAGE 1 - CRADLE MT TO NARCISSUS RUN
a runner will take a wrong turn, get lost, and become benighted 1.1
a runner will fall, injure themselves, and be unable to continue 1.2
a runner will sustain an injury requiring advanced medical aid 1.3
a runner will suffer from a medical condition, be unable to continue, or need medical aid 1.4
a runner will suffer a snake bite, be unable to continue, and require medical aid 1.5
a runner will become exhausted and fail to complete the run in the prescribed time 1.6
weather conditions will be such that the risk to runners is unacceptable 1.7
equipment belonging to a runner will be lost or damaged during the run 1.8
equipment belonging to a runner will be lost or damaged during transport to the finish 1.9
a bushwalker will be injured as a result of a collision with a runner 1.10
marshals involved in management of the stage may become lost 1.11
marshals involved in management of the event may be injured and require medical aid 1.12
equipment belonging to a marshal, or their organisation may be lost or damaged 1.13
equipment or personnel will be left at Narcissus when cleared at the end of the day 1.14
a runners support crew will fail to get to Narcissus in time to meet them 1.15
9.5
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STAGE 2 - NARCISSUS TO CYNTHIA BAY KAYAK
equipment belonging to a paddler will be stolen while in the care of organisers 2.1
equipment belonging to a paddler will be damaged during transport up the lake 2.2
equipment will fail to arrive in time for transport up the lake 2.3
a competitor will not have sufficient skill for the conditions and capsize 2.4
a competitor will not have sufficient skill for their chosen craft and capsize 2.5
a competitor will be too exhausted for the paddle and capsize 2.6
a capsized competitor will be in the water for an unacceptable period of time 2.7
lake conditions will be such that an unacceptable risk is presented to competitors 2.8
rescue craft will not be able to manage the number of competitors on the water 2.9
a rescue boat will encounter craft-threatening difficulties 2.10
a crew member of a rescue boat will fall overboard 2.11
the boat handling skills of rescue craft personnel are inadequate for the conditions 2.12
a rescue craft may irretrievably sink 2.13
STAGE 3 - CYNTHIA BAY TO MEADOWBANK CYCLE
a cyclist will fall and require medical aid 3.1
a cyclist will collide with a vehicle and require medical aid 3.2
a motorist will have or cause an accident by becoming impatient and taking a rash action 3.3
weather/road conditions will be such that there is an unacceptable risk to cyclists 3.4
a cycle will be damaged during a fall or collision 3.5
a cyclists bike will suffer mechanical problems and they will not be able to continue 3.6
a cyclist will be injured by falling on or though the cattle grate at the finish 3.7
STAGE 4 - LYELL HIGHWAY TO MEADOWBANK DAM RUN
a runner will fall and require medical aid 4.1
a runner will be struck by a car and injured 4.2
a motorist will have an accident by taking action to avoid a runner 4.3
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STAGE 5 - MEADOWBANK DAM TO NEW NORFOLK KAYAK
a competitor will not have sufficient skill for the conditions and capsize 5.1
a competitor will not have sufficient skill for their chosen craft and capsize 5.2
a competitor will be too exhausted for the paddle and capsize. 5.3
a competitor will capsize and become pinned on rocks, bridge pylons, or logs 5.4
a competitor will damage their kayak and be unable to complete the stage 5.5
a competitor will sustain an injury in the course of a mishap / self rescue 5.6
a competitor could be capsized by jet boat tourism operators 5.7
safety marshals on the river will not be suitably prepared for a rescue 5.8
damage or loss may occur to a safety marshals equipment 5.9
STAGE 6 - NEW NORFOLK TO BRIDGEWATER KAYAK
other river users (eg water skiers) may cause capsize or injury to competitors 6.1
a competitor may capsize 6.2
STAGE 7 - BRIDGEWATER TO COLLINSVALE CYCLE
a cyclist will fall and require medical aid 7.1
a cyclist will collide with a vehicle and require medical aid 7.2
a motorist will have or cause an accident by becoming impatient and taking a rash action 7.3
a cycle will be damaged during a fall or collision 7.4
a cyclist will run a traffic light and in so doing cause an accident 7.5
a cyclist will disobey a road rule and in so doing bring the race into disrepute 7.6
a motorist will be unaware of the race in progress and collide with a cyclist 7.7
a cyclist will miss a turn and become lost 7.8
marshals will fail to be at the right place at the right time and an accident may result 7.9
STAGE 8 - COLLINSVALE TO SALAMANCA PLACE RUN
a runner will take a wrong turn, get lost, and fail to finish by the cut off time 8.1
track markers will be removed by mischief makers resulting in a competitor getting lost 8.2
a runner will fall, injure themselves, and be unable to continue 8.3
a runner will sustain an injury requiring advanced medical aid 8.4
a runner will suffer from a medical condition, be unable to continue, or need medical aid 8.5
a runner will suffer a snake bite, be unable to continue, and require medical aid 8.6
weather conditions will be such that the risk to runners is unacceptable 8.7
a runner will collide with a bushwalker or pedestrian and cause injury to them 8.8
a runner will be struck by a vehicle and injured 8.9
a runner will ignore pedestrian signals and be struck by a car and injured 8.10
a runner will ignore pedestrian signals and be stopped by police 8.11
9.7
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Risk Management
Strategies
GENERIC STRATEGIES (applying to the event as a whole or multiple stages)
REF STRATEGY RISK REF
1 All competitors will be required to complete and return with 0.9 / 1.4 / 1.6
their entry, an information sheet providing a medical history, 2.4 / 2.5 / 5.1
event experience, and type of kayak they will use. Those deemed / 5.2
to have insufficient experience or fitness, by the organisers, will be
refused entry. Medical histories will be reviewed by the events
medical adviser, and an entry may be refused on their advice.
(See annex a)
2 Consideration of actual and forecast weather conditions against 1.7 / 2.8 / 3.4
pre-determined limits may lead to cancellation of an intended / 8.7
stage. In this event the pre-determined bad weather contingency
for that stage will be introduced. (See annex b)
3 A suitable insurance cover will be secured by the organisers 0.1 - 0.5 /
which includes public liability, a general property cover, and 0.7 / 0.8
motor vehicle insurance for vehicles used officially for
management of the event. Comprehensive details of the event
must be disclosed to the insurer to ensure adequate cover.
A check should be made to ensure there are no exclusions for
water craft used in the event. Organisers should also ensure that
owners of the boats used for safety in stage 2 & 6 have suitable
marine insurance with a liability arising out of use cover, and
that competitors are aware that they are responsible for their
own personal injury / property cover
4 Memoranda of Understanding or similar documents will be Various
drawn up for selected marshals used in the event. These will
include the SES (stage 1), water safety (stage 2 & 6 ), river rescue
(stage 5), and cycle (stage 7) The document will detail the extent
of their responsibilities and the expectations of organisers.
The documents should be signed by both parties.
(See annex c/i, c/ii, c/iii, & c/iv )
9.8
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GENERIC STRATEGIES (Cont.)
5 Entry to the event will include a suitable disclaimer, signed by 0.1 / 0.2
the competitor, clearly advising them of the risks associated with
the event (See annex d)
5a Competitors will be advised that the organisers carry no insurance 1.8 / 1.9 / 3.5
for their personal injury or loss / damage of equipment in the / 7.4
normal circumstances
6 Comprehensive briefing notes will be provided to each 1.1 / 1.10 / 2.2
competitor or team, and support crews, which include course 2.4 / 2.5 / 3.2
details and minimum equipment requirements for each stage. 3.3 / 5.1 / 5.2
These notes will also include information on likely hazards and 5.5 / 5.6 / 7.3
any action that should be taken in the event of an accident. 7.5 /7.6
(See annex e)
7 A verbal briefing session will be provided to all competitors 7.8 / 8.1 / 8.3
for each day of competition. Attendance will be mandatory for 8.8 / 8.9 / 8.10
all competitors. A checklist will be prepared to ensure no / 8.11
information is overlooked. (See annex f)
8 Emergency Response Plans will be prepared for each stage. Various
(See annex g)
9 Police Search and Rescue will be advised of the event and 1.2 / 1.3 / 1.4
provided with a copy of the risk management plan / emergency
rescue procedures
10 Backups will be in place for all timing equipment and timing 0.11
officials will be thoroughly trained in use of the equipment
11 A detailed plan will be prepared for media liaison for 0.6 / 0.10
the event. (See annex h)
9.9
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SPECIFIC STRATEGIES
STAGE 1 - CRADLE MT TO NARCISSUS RUN
12 Competitors who will be completing the Overland Track for 1.1
the first time will be singled out for a more detailed briefing
for that stage
13 All competitors must carry a minimum of equipment which 1.1 / 1.2 / 1.3
is specified in the briefing notes. This will be thoroughly checked 1.4 / 1.5 / 1.6
by officials prior to the start and a runner prevented from
starting if their kit is incomplete or the standard of equipment
inadequate
14 Checkpoints and suitable communications will be in place to As above
monitor progress of runners. (See annex c/i )
15 Cut off times will be calculated and a pre-planned response As above
initiated if a runner fails to arrive by the cut off. (See annex c/i )
16 The last runner will be followed by a sweep person with suitable As above
experience of the Overland Track, appropriate first aid
qualifications, and the capability to communicate with
a checkpoint
17 All checkpoint marshals will be suitably experienced and skilled 1 (various)
for their tasks, and will receive a thorough briefing by their
leader (see annex c/i )
18 Suitable notices will be placed in the walker registration booths 1.10
at Dove Lake, Waldheim, and Cynthia Bay, with the permission
of Parks, to alert bushwalkers to the event and what to expect.
These should be displayed at least one week before the event.
(See annex i)
19 Shelter, food, drink and extra clothing should be available at 1.15
the stage finish to care for any runner arriving in poor condition
9.10
SPECIFIC STRATEGIES
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STAGE 2 - NARCISSUS TO CYNTHIA BAY
20 Secure storage should be provided for any kayaks which are 2.1
left in the care of the organisers at Cynthia Bay
21 Competitors will be advised of precautions to be taken to 2.2
protect craft during transport up the lake. e.g. boat covers and
protection for steering systems
22 A suitably-skilled person will be delegated to oversee the 2.2
loading and unloading of racing kayaks for stage 2
23 All kayaks will be scrutinised to ensure they are in good 2.4 / 2.5 / 2.6
condition, have adequate buoyancy and end loops
24 All individual competitors will be screened by a paramedic 2.6
before stage 2
25 All competitors will be required to wear suitable clothing, 2.4 / 2.5 / 2.6
an approved buoyancy vest and carry the equipment detailed in
the briefing notes
26 Organisers should ensure that boats used for safety on stage 2.10 / 2.11 /
two are appropriate to the task, are seaworthy, properly equipped, 2.12 / 2.13
insured, and controlled by a competent person
27 Safety personnel on the lake will be advised of competitors who 2.4 / 2.5 / 2.6
may require closer monitoring. These competitors will be
identified from the competitor information sheets by the kayak
adviser to the race officials
28 Safety boats will be stationed to enable all competitors to be 2.7 / 2.9
in sight
29 If a competitor swims twice, they will be withdrawn from 2.6 / 2.7
the stage
30 Safety boats should advise the checkpoint at Narcissus if they 2.9
are about to rescue a competitor, and when that rescue is
complete. If all safety boats are involved in rescues, competitors
will be prevented from starting stage 2 until an all clear is given.
31 The condition of all individual competitors will be noted at the 5.1 / 5.2 / 5.3
end of stage 2
32 A meeting of the race organisers and officials will be held after 5.1 / 5.2
all competitors have completed day 1, to identify potential
problems for day 2
9.11
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STAGE 3 - CYNTHIA BAY TO MEADOWBANK CYCLE
33 A permit will be obtained from Tasmania Police for stage 3. 3.2 / 3.3
Precautions will include lead and follow vehicles with flashing
amber lights and appropriate signs, warning signs placed at the
junction of Lake St Clair - Lyell Hwy, and on the Lyell Hwy at
the stage finish, and marshals with red flags to warn traffic at
each of these locations. (See annex j )
34 Start will be staggered, cyclists to be self contained, and support 3.2 / 3.3
crews directed not to follow behind their cyclist to reduce the
hazard to motorists
35 Drink stations will be specified to reduce the hazard to motorists 3.2 / 3.3
36 Time penalties will be applied to competitors who breach 3.2 / 3.3
any directive
37 The SES is to ensure that a suitable communication network is 3.1 / 3.2
in place to enable progress to be monitored and for use if an
emergency should occur
38 First aid will be available from a St John Ambulance which will 3.1 / 3.2
follow the last cyclist
39 Transition point to run will be stationed before the cattle grate 3.7
STAGE 4 - LYELL HWY TO MEADOWBANK DAM RUN
40 Motorists will be warned of the runners at the Lyell Hwy 4.2 / 4.3
- Meadowbank Dam Road junction verbally or by sign
9.12
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STAGE 5 - MEADOWBANK DAM TO NEW NORFOLK KAYAK
41 HEC will be advised of the race and a request made for a low 5.1
to moderate level of water
42 The Strainer, Broken Bridge, and Railway Bridge rapids will 5 (various)
each have two rescue persons on standby. Both will have inland
proficiency and preferably specific river rescue training
43 All competitors are required to wear an approved buoyancy 5 (various)
vest and helmet, and carry the equipment specified in the
briefing notes
44 All kayaks will be scrutinised to ensure they are in a seaworthy 5 (various)
condition, and have adequate buoyancy and end loops
45 A sweep will follow the last competitor as far as Gretna if 5 (various)
deemed necessary by the Race Director or their rep. for the stage
46 Checkpoints will be placed at the 3 main rapids mentioned 5 (various)
above and comms for each of these is to be provided by the
SES. An additional checkpoint may be placed at Bushy Park
47 First aid backup for the stage will be provided by St John 5.6
Ambulance
48 The New Norfolk Jet Boat Operators will be advised of the 5.7
race and asked to provide suitable courtesy to competitors
STAGE 6 - NEW NORFOLK TO BRIDGEWATER KAYAK
49 All competitors are required to wear an approved buoyancy vest, 6.1 / 6.2
and carry the equipment specified in the briefing notes
50 All kayaks will be scrutinised to ensure they are in a seaworthy 6.1 / 6.2
condition, and have adequate buoyancy and end loops
51 A safety boat will accompany competitors during the stage 6.1 / 6.2
52 Other likely user groups for that section of river will be 6.1
identified and advised of the event
9.13
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STAGE 7 - BRIDGEWATER TO COLLINSVALE CYCLE
53 A permit will be obtained from Tasmania Police for stage 7 7.2 / 7.3 / 7.5
which details precautions to be taken such as signage, placement / 7.6 / 7.7
of marshals etc.
(See annex j/i )
54 The Hobart Cycling Club will provide the resources necessary As above +7.8
for compliance with the Tasmania Police Permit
55 Time penalties will be applied to competitors who breach any 7.5 / 7.6
road rules or directive of the organisers
56 A time out zone has been created between the Bowen Bridge 7.5 / 7.6
to Collinsvale to eliminate the urgency that has seen
competitors run red lights in the past
57 Support crews will be directed to take an alternative route to 7.3
Collinsvale to eliminate possible congestion and other
traffic problems
58 The SES is to ensure that a suitable communication network is 7.1 / 7.2
in place to enable progress to be monitored and for use if an
STAGE 8 - COLLINSVALE TO SALAMANCA PLACE
59 The course will be signed and marked the day before the stage 8.1 / 8.2
60 Checkpoints will be stationed at Big Bend, The Springs, 8.1 / 8.3 / 8.4
and Strickland Avenue / 8.5 / 8.6
61 The SES is to ensure that a suitable communication network is 8.3 / 8.4 / 8.5
in place to enable progress to be monitored and for use if an / 8.6
62 A check will be made to ensure all runners carry the specified 8 (various)
equipment
63 Warning signs will be placed to alert motorists at specified 8.9 / 8.10
road crossings
9.14
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CASE STUDY 2
The Concept of Risk
(A fictional case study highlighting the concept of risk in a sport & recreation context)
Consider the following fictional situation.
The local surf club has spent months planning a junior surf carnival to which all the nearby clubs
have been invited. The day of the carnival brings blustery conditions and relatively big seas. Some
parents have contacted the organisers to see if the event is still on, some have kept their children at
home as a result of a well publicised drowning at a surf carnival in Queensland, and some have
dropped their children off without apparent concern. Some of the nippers are excited, others are
scared. Some of the organisers are concerned about the safety of participants in the big surf. "Lets just
weed out the weaker competitors" is one suggestion. "Best just to cancel all the water events" is
another. "Send out the inshore rescue boat while the events are on", "We could always shorten the
course", "Lets just see how it goes - what have we got to lose", "Just let the kids decide themselves if
they want to go in", "Looks OK to me" are a few more.
The situation outlines some interesting differences in attitudes toward, perceptions of and the
management of risk. Why are there so many differences? Before we can sensibly deal with risk
management, it is necessary to first understand some of the human factors involved, and the
philosophy, ethics and perceptions that underpin risk in our society. If we don't share common
concepts of risk, we will have difficulty achieving a unified approach to risk management within
sport and recreation organisations. The example above can be used to illustrate many of concepts we
need to appreciate.
We all perceive risk differently, depending on our knowledge, skills, experience.
Some parents perhaps have no knowledge of the hazards associated with surf and therefore no
understanding of the risks. They drop their children off in blissful ignorance. Some organisers with a
long experience in surf lifesaving are only too aware of the hazards and risks and are rightly
concerned with the ability of some children to safely handle the conditions. Some children may be
confident in their ability to handle the surf, and justifiably so. Others may be confident, but not
competent. Some will be competent, but not confident. And a few will know the conditions are
beyond their ability.
The difference between 'real' risk and 'perceived' risk.
There is a distinct difference. Real risk relates to the high chance of loss, harm or liability occurring.
Perceived risk (sometimes also called apparent risk) describes a risk that appears highly likely, but
actually involves a lesser real risk. Some parents have kept their children at home because they
believe surf activities are too dangerous in light of the recent Queensland tragedy. No doubt media
coverage has heightened this perception. This is perceived risk. In fact the real risk attached to such
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activities could statistically be demonstrated to be very low. Knowledge and experience is also an
important factor in equating real and perceived risk.
The level of risk accepted depends on what is at risk.
"Let's just see how it goes - what have we got to lose?" What is at risk? It may be money. The club
may have invested a significant amount in organising the event and to cancel may result in a
substantial financial loss. It may be a life. This could result in an adverse legal action against the club.
It may also adversely affect the club's reputation. There is also likely to be a negative impact on surf
lifesaving generally - a drowning at a surf lifesaving carnival would not go unnoticed. Such bad
publicity may result in a drop in participant numbers for surf lifesaving generally.
"Lets just weed out the weaker competitors." A strategy that would no doubt result in some nippers
feeling inadequate and quitting the sport.
"Just let the kids decide themselves if they want to go in." Not only an abrogation of responsibility,
but a strategy destined to see some nippers accept greater risk than they otherwise would because
they do not wish to lose face with their peers.
Group risk versus individual risk
Exposing an individual to risk is one thing - exposing a group is another. The community may well be
prepared to tolerate the occasional drowning at a surf carnival. However if drownings at surf carnivals
became too frequent, or several people drown in one incident, the community will most certainly
demand action to reduce the risk and some will probably want surf lifesaving banned. This demand
will escalate if children are involved as this attracts a more emotive community response.
Voluntary versus involuntary risk
Some of the organisers would no doubt happily swim in the surf themselves. But it is not a question
of what level of risk they accept, rather what is acceptable for the children who will have the risk
imposed upon them. In imposing a risk on others the organisers are accepting a considerable
responsibility.
Risk is ubiquitous.
Regardless of where you are and what you are doing, at no time can you find perfect safety. Even
sleeping in your bed has a risk attached, as tragically demonstrated by the landslip that occurred in
Thredbo in 1997. Normally though, we would not perceive such a risk. Only when an event of such
magnitude is thrust upon our consciousness is the risk considered. The prospect of drowning in the
surf may not have crossed the minds of some parents had it not been for the Queensland tragedy. We
must appreciate that there is a certain level of risk, below our perception and beyond our influence,
to which we are exposed every day.
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The level of risk is directly proportional to the level of safety.
A reduction in risk results in an increase in safety and vice versa. There is clearly a balance to be
struck. We cannot avoid some degree of risk and we cannot afford, nor can we attain perfect safety.
What we expend to strike this balance is important not only in financial terms, but also in terms of
the benefits that we may gain from taking the risk such as the satisfaction of winning. "Cancel all the
water events" may well be a very effective strategy to prevent drownings, but will seriously detract
from the carnival experience for participants and spectators.
What is acceptable risk?
There is no doubt that there is a measure of risk that must be accepted if we wish to participate in
any activity. But, how much? This is perhaps the most crucial and difficult question in managing risk.
Difficult because the ground is constantly shifting. Perhaps it is easy for us to decide for ourselves in
relation to our own participation, but it is much harder to decide when we are in a position of
responsibility, caring for the safety, assets and concerns of others. In this case, the collective wisdom
and experience of the surf carnival organisers and the guidelines developed by Surf Life Saving
Australia for organising events, should allow them to realistically determine the level of risk
acceptable for the children, and themselves.
Summary
In managing risk, awareness would seem our key defence, distraction our enemy; history and
experience our greatest teachers.
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CASE STUDY 3
Manage Risks
(or your event may cost more than you think!)
(A case study highlighting how a club may have to defend its risk management of an event)
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Athlete Injury & Equipment Damage - Triathlon
The triathlon concerned was an established and popular event on the triathlon calender. In the event,
a triathlete was struck by a car that proceeded through a witches hat barrier during the cycle leg
which resulted in minor injuries to the athlete and damage to the bicycle.
The triathlete sought to recover the costs of the damage to themselves and equipment through
lodging claims against the driver. The MAIB handled the claim for personal injuries as the insurer of
the driver. The drivers property insurer handled the claim for the damaged bike.
Under the MAIB legislation, persons injured in accidents arising from out of the use of a motor
vehicle can claim all medical and associated expenses without proving any person was at fault. If a
person wishes to claim damages, including damages for pain and suffering however, they must prove
that the other party was at fault. The triathlete did make such a claim against the driver which he
disputed. The MAIB handled this claim as the drivers insurer.
The MAIB, acting on the drivers instructions, lodged a claim against the Triathlon Club alleging that
the Club failed to meet its duty of care to the motorist by not adequately warning the motorist of the
race in progress and that the Club was therefore responsible for any payment to the triathlete.
The Club could demonstrate that it had taken reasonable steps to warn motorists and protect
competitors during the cycle leg of the event, and referred the matter to its insurer.
The Clubs insurer defended the action on behalf of the Club.
The matter was subsequently settled out of Court without any payment being made by the Clubs
insurer who only paid its own legal costs.
If the Club had been found negligent in failing to provide proper warning to motorists, then the
Clubs insurer would have paid the triathletes claim. Because the Club was incorporated, and had
third party insurance, they were adequately protected.
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CASE STUDY 4
Risk audit and review
A case study highlighting the benefit of periodic auditing and review of control measures
Playground equipment - Punchbowl Recreation Reserve
Launceston City Council Parks and Recreation Department
The Parks and Recreation Department commissioned its planning officer to conduct a risk audit on
all playground equipment within the municipality. This was initiated as a result of minor accidents
that had been reported and field knowledge from the Parks and Recreation staff, indicating possible
problems with ageing equipment.
The risk audit highlighted concerns over the brittleness of ageing treated pine in playground
equipment, hinge mechanisms and inappropriate construction techniques, especially those not
meeting finger entrapment recommendations in Australian Standards.
The Parks and Recreation Department decided to redevelop the Punchbowl Reserve playground as
an equal access playground. Department staff used their knowledge of the Australian Standards for
playground equipment to develop a plan for the site and employed an architect to carry our detailed
investigation which included gathering information from around Australia and overseas. The final
design was prepared following consultation with user groups and the community at large.
AusPlay, a playground equipment manufacturer, was asked to supply equipment for the
redevelopment, as the council believed them to be leaders in their field. They provided equipment
that met the Australian Standards, and provided a guarantee which accepted liability if any piece of
their equipment resulted in litigation.
The Parks and Recreation Department incorporated a new rubber surface compound into the area to
improve accessibility. A 'roller' style slide, constructed of multiple rollers to give a slightly rippled
ride, was installed.
The council instigated an inspection regime within this reserve and many other parks and playground
areas. The council also had a general complaints procedure established as part of its customer service
charter.
Reports indicated that the roller slide was not being used correctly - people were running up the
slide (as seen on TV programs on air during this period) then slipping and hitting their faces on the
slide. Other children were climbing underneath and rotating the rollers in the opposite direction of
travel of those using the slide. This caused fingers to be dragged into the rollers.
As result of its investigations, council withdrew the slide from the playground and replaced it with a
plastic double slide that met Australian Standards, and thereby eliminated the risks.
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CASE STUDY 5
Inspection of New Works
(Horses for courses - the importance of getting advice from suitably qualified people!)
Design and construction of Platforms and Jetties
- Four Springs (Meander Valley)
Four Springs Recreational Committee / Dept of Environment
and Land Management
The Four Springs Project was largely government funded and involved the creation of an artificial lake for
recreation in the Meander Valley in northern Tasmania. The dam is expected to be open to the public in 1999.
The Four Springs Recreational Committee worked as an unincorporated group representing the local
fishermen, land owners, local council, the Meander Valley Enterprise Centre (MVEC) and some other
recreation groups. When funds became available to the group to construct the Four Springs dam, they
instigated the management committee as an incorporated entity to administer the funds and supervise
construction of the dam.
The management committee prepared a brief on the construction of the dam and ancillary facilities:
namely a picnic shelter and jetty for people with disabilities, a public access boat ramp, shelter, and a
public access jetty.
The engineering firm that successfully gained the tender for the ancillary facilities continued to liaise
with the management committee during the construction phase. Direct on site supervision was
conducted by the New Work Opportunities supervisor (a federal government employment scheme) and
the manager of MVEC as a representative of the management committee.
When construction was completed, the Department of Environment and Land Management (DELM)
participated in a preliminary visit of the site, intended to lead to a risk and safety audit, and management
plan. During this visit it became apparent that although Australian Standards had been used for the
design of both jetties, the scope of the Standard was not appropriate to the actual situation in which
they were to be used. In addition, some construction techniques were not of a suitable quality, potentially
leading to a reduced life span of the jetties, and the need for a close inspection routine. Fortunately the
site was not open to the public - a situation that would have required closing off the jetties until further
work could rectify the problem.
DELM interpreted the appropriate Australian Standards and determined construction techniques suitable
to the situation, facilitated a repair, and development of an inspection and maintenance program with the
engineer and management committee. It should be noted that experienced interpretation of Australian
Standards is necessary to ensure the scope of the Standard matches the situation. Discussion with
reference groups or recommendations by public organisations is not appropriate for design or
construction of facilities for public use. Supervision of construction should also be undertaken by an
experienced person to maintain quality. Inspection and maintenance programs are considered standard
practice with public facilities.
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CASE STUDY 6
Safety & Participation Policy Development -
Junior Cricket
Setting the standards for participation and safety in junior cricket
The North West Regional Youth Committee of the North West Tasmania Cricket Association is made
up of representatives from most of the cricket clubs on the north west coast. The main aim of the
committee is to ensure a coordinated approach to providing structures and opportunities that will
secure the future of cricket in the region and allow junior players to develop to their full potential.
In 1996 the committee developed a strategic plan to guide their actions for the next few years.
Important considerations in the planning process were quality and safety and as a result, a
Participation & Safety Policy based on Australian Cricket Board guidelines was developed and
released in December 1997.
The policy is a significant step toward ensuring that junior cricket administrators adopt a consistent
and sensible approach to risk management in north west Tasmania.
The policy covers:
the balance between participation, competition, and enjoyment
gender equity
structured development and modified rules
coach accreditation
code of conduct for coaches, umpires, parents, and participants
protective equipment
Health (medical screening, sun protection, hydration, breaks in play, infectious diseases, first
aid kits/training, injury referral, recording injuries, stretching)
emergency plans
field placements and guidelines for bowlers
inspection of playing areas
weather
insurance
The committee has provided copies of the policy to all junior cricket administrators and coaches and
promoted it through newsletters.
The committee will monitor compliance with the policy and undertake a review at the end of each
season.
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NWTCA REGIONAL YOUTH COMMITTEE
JUNIOR CRICKET
PARTICIPATION & SAFETY POLICY
SCOPE
This policy applies to all competitions and practice organised under the auspices of the North West
Tasmania Cricket Association.
Our greatest asset is our up coming cricketers. Everyone involved in junior cricket has a responsibility
to ensure the principles of this policy are properly implemented.
COMPETITION AND PARTICIPATION
Competition is an intrinsic part of sport that involves measuring performance against an opponent,
oneself, or the environment. Competition provides a valuable form of motivation and is a natural
feature of many childrens games. Properly managed, competition should be seen as a healthy and
desirable aspect of cricket. It is important however that competition and winning do not over-ride
enjoyment, participation opportunities, and learning as key elements of a childs experience in the
game.
All junior cricket participants should be encouraged to achieve, do their best, and develop their full
sporting potential. Challenging competition is one element of this development.
Establishing and maintaining the balance between participation, competition, and enjoyment is one
of the prime responsibilities of coaches and managers.
Gender Equity
Opportunities will be provided to girls to play in junior competitions if there are insufficient
numbers for a separate girls competition.
Development
All young cricketers should be encouraged to play at a level appropriate to their interests and
abilities. The junior cricket structure (attachment 1) provides a logical progression of experiences
that will assist the development of young cricketers. The programs incorporate the following
characteristics:
an emphasis on enjoyment and successful participation
development of suitable standards of behaviour
progression from general physical activities and to specific skills
experience in a variety of skills before specialising in one area
experiences appropriate to the cricketers age, ability, and maturity
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Modified Rules
The appropriate modification of equipment and rules, to take account of ability and maturity and
ensure equity in participation, is seen as essential to providing safe and enjoyable cricket experiences.
It is the responsibility of all coaches and managers to ensure that they are familiar with, and uphold
the modifications that apply to the junior cricketers in their charge.
COACH ACCREDITATION
To ensure appropriate and quality coaching the following minimum standards apply:
Level 0 - up to grade 7/8 competition
Level 1 - 4th grade and up
Level 2 - all grades
Level 3 - specialist coaching - all grades
CODE OF CONDUCT
Appropriate behaviour is a shared responsibility. The Aussie Sport Codes of Behaviour are endorsed.
Coaches, managers, and parents will:
Encourage enjoyment of sport
Provide equal encouragement and opportunity to all players
Recognise and cater for those with special needs
Set realistic standards and objectives
Lead by example with good sporting behaviour
Encourage rather than demand participation
Never ridicule or yell at a child for making a mistake or losing a game
Encourage play within the rules and acceptance of umpiring decisions
Umpires will:
educate as well as arbitrate
be consistent, courteous, and helpful to all players
use discretion in applying the rules to ensure that a childs growth and development are
considered, and that the spirit of the game and enjoyment are not lost
discourage unsporting behaviour and promote respect for opponents
Participants will:
always play by the rules
never argue with an umpire
be a good sport
play for fun and enjoyment
be a good team member
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PROTECTIVE EQUIPMENT
Helmets
There are no requirements for helmets in Kanga Cricket and Have-a-Go.
Helmets are strongly recommended for all batsmen in competitions from primary grades through to
3rd grade competition. (ie: up to age 18)
Helmets will be compulsory for batters in these grades, up to age 18, from the 1998/99 season
onwards.
All helmets must: - meet the appropriate Australian Standard
- have complete full face protection
- be correctly fitted
Where helmets are shared, care must be taken to ensure suitable hygiene is practised.
It is also recommended that new or inexperienced wicket keepers wear a helmet until skill and
confidence develop to a suitable standard.
Other equipment
When batting or wicket keeping, wearing of the following is mandatory:
pads
gloves
protector
The following equipment is recommended:
thighpads
mouth guards for wicket keepers
HEALTH CONSIDERATIONS
Medical screening
Disclosure of certain medical information is essential to ensure the health of young cricketers is not
compromised. A medical information form (attachment 2) will be completed by all participants as
part of the registration process.
All medical information is to be treated with strict confidentiality.
Sun Protection
All coaches and managers are to encourage sun smart behaviour.
All participants will wear hats or caps
15+ sunscreen will be applied to all exposed skin and re-applied at each break
Sunglasses are strongly recommended and should comply with AS 1067
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Hydration
Players are to be encouraged to drink plenty of fluids and each is to have their own drink bottle.
Breaks in play
Umpires and coaches should ensure there is a break in play every hour to allow players to drink and
re-apply sunscreen
Infectious diseases
Avoidance of blood and body fluid exposure is the best way to prevent the contracting of diseases
such as hepatitis and HIV. This will be assisted by ensuring
appropriate gloves are worn when treating any cut or abrasion
gloves are available in all first aid kits
First aid kits
A first aid kit will be available at all matches and practice sessions.
Both Red Cross and St Johns have first aid kits which they recommend for sport and these are the
recommended standard. First aid kits should be properly maintained.
First aid training
It is recommended that all coaches and managers undergo suitable first aid training.
It is recommended that a person with suitable experience be appointed as the first aid officer for
each match and practice session.
Injury referral
Parents or guardians should always be advised of any injury to their child.
Any head injury is a cause for concern. Any player struck in the head that continues to play should
be carefully monitored for any deterioration in their condition.
Any player removed from play as a result of a head injury should immediately be referred to a
medical practitioner for examination.
Records of injuries
A record should be kept of all injuries requiring first aid treatment
Stretching
Stretching as per the recommended schedule for that age group is compulsory before and after play
or practice sessions.
All coaches and administrators of play should encourage good stretching habits.
Emergency action plan
Dial 000 and request an ambulance.
Ensure you know where the nearest accessible phone is and that you can give clear directions to get
to your location.
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FIELD PLACEMENTS
Fielding close to the batter generally demands more judgement, concentration and reflexes than can
be expected from under age cricketers. With the exception of the wicket keeper and slips fielders the
following restriction applies up to 4th grade and includes any high school player. No fielder will be
positioned within 10m of the batters middle stump. This is illustrated below.
Restricted Area
No player may enter the restricted zone until after the ball:
- is hit by the batter or,
- strikes the body or equipment of the batter or,
- passes through to the wicket keeper
If they do, the umpire at either end will signal and call, dead ball
If a player enters the restricted zone before the bowler releases the ball, the umpire should
stop the delivery of the ball
The restricted zone will be marked either by line or suitably placed discs
The ability of players must be considered in all field placements.
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Bow ler
Slips
W icket
Keeper
10m
Restricted Area
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BOWLERS
The problem of back injuries in fast bowlers is well documented and the most susceptible age for
injury is between 14 and 20. The amount of fast bowling in practice and in matches should be
controlled to reduce the stress placed on the body. The following guidelines developed by the ACB
will apply.
MAXIMUM BOWLING GUIDELINES U13 U15 U17 U19
spells per innings (13, 15) 2 2 16 20
MATCH * overs per innings (17, 19)
overs per spell ** 4 5 6 8
sessions per w eek 2 2 3 3
PRACTICE balls per session 30 36 36 42
* Substitute one practice session for each additional match played in the week.
** Break between spells to be greater than the length of spell concluded or 60 mins.
In 50 over 1 day games, U17&19 bowlers are permitted to bowl 10 overs in one spell.
All fast bowlers should have their action checked by an accredited level 2 coach and if found to be
suspect, specialist advice sought to correct the problem.
INSPECTION OF PLAYING AREAS
All areas should be visually checked for hazards prior to play. This includes wickets, run-ups and the
outfield.
Additional care is required at known landfill sites.
Coaches, umpires, and managers should monitor ground conditions during the course of play to
ensure they do not deteriorate.
WEATHER CONDITIONS
Play will be halted if weather conditions are deemed to make play unsafe by a coach,
manager or umpire.
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INSURANCE
Parents should be aware that the insurance cover provided by the organisers of junior cricket
competition and practice is basic and injuries sustained during practice or competition may not be
covered. Parents should be prepared to meet the costs associated with any injury under their own
insurance covers.
SOURCE DOCUMENTS
Junior Cricket Development Policy
Australian Cricket Board - April 1997
Sportsafe Australia - A National Sports Safety Framework
Australian Sports Injury Prevention Taskforce (Aust. Sports Commission) - June 1997
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DEVELOPMENT
PROGRAM
Kanga cricket
& Kinder cricket
Have-a-go
Cricket A-Z
COMMENTS
The simple foundation skills that are
the basis of Kanga Cricket have been
designed specifically for pre-school and
primary aged children with the aim of
developing hand-eye co-ordination
skills, providing the fun game for a
playground activity and as a modified
form of introduction to the game of
cricket. Emphasis on enjoyment and
basic skill learning - throwing, catching,
hitting, running.
Have-a-go is an introductory skills and
modified cricket games program. Aimed
at children ten years and under, the
twelve week program represents the
perfect introduction to a club
environment for players and parents.
Conducted by volunteer parents, the
program structure enables the more
experienced coached to offer assistance to
the newly recruited parents. A suitable
resource package of activities is available.
The Cricket A-Z program utilises
similar principles to Kanga Cricket, but
is specifically geared to cover the needs
of Secondary School teachers and
children.
PROGRAM
OBJECTIVES
Develop basic skills of
cricket
Develop a positive
attitude by children
towards cricket
Encourage all children
to continue their
cricket in the years
ahead
Develop a balanced
attitude to competition
To prepare girls and
boys for junior cricket
To provide physical
and emotional growth
benefits
To have fun
To recruit and train
future coached and
administrators
Maximum
participation suitable
for both girls and boys
Development of
cricket skills
Deliver a series of
progressive activities
designed for physical
education
requirements
Suitable for schoolyards,
gymnasiums, or other
school areas where
ideal: cricket facilities
do not exist
An attractive
continuation of cricket
for junior and middle
secondary girls and boys
SCHOOL/
CLUB BASED
Primary School
Kindergarten
Community/
Club Based
Secondary School
ATTACHMENT 1
JUNIOR CRICKET DEVELOPMENT MODEL
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ATTACHMENT 2
MEDICAL INFORMATION
Please provide the following information which may help your child in the unlikely event of accident
or illness.
1. List details of any medical conditions which require regular or intermittent medications or
injections. Indicate dose and freq. (eg asthma, diabetes, epilepsy etc)
2. List details of any other medical conditions which could be exacerbated by physical activity.
3. Describe any allergies your child has. (eg bees, wasps, hay fever, penicillin etc)
4. Describe any disabilities. (eg sight, hearing, mobility etc)
5. Describe any fears or phobias.
6. When did your child have their last tetanus injection?
7. Please state any other information which may be important.
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CASE STUDY 7
Sink or swim? Old fashioned thinking!
Strategies for managing the risks associated with sporting events.
The Tasmanian Canoe Club Inc. regularly organises and runs canoe slalom events designed for junior
paddlers and novices at its Forth River Site. The club knows that a novice paddler can quickly get
into trouble in moving water resulting in a bad experience that at best can put them off canoeing,
and at worst can result in drowning.
Strategies for the management of risk at events can be thought of logically in terms of prevention,
preparedness, response, and recovery. The club manages the risks associated with novice slaloms in a
number of ways:
Prevention Strategies
Periodic inspection and maintenance of the man made features in the section of river used
for slaloms.
The club has regular sessions in a heated pool where experienced paddlers teach novices how
to eskimo roll, or exit a kayak after a capsize.
Experienced paddlers teach novices the basic skills required for moving water before
they compete.
Low water levels, creating easier water conditions, are requested from the HEC for
novice slaloms.
Easy courses are set.
Gate judges receive appropriate training and a back up timing system is in place.
Preparedness Strategies
A safety briefing for all competitors is held immediately before each event.
All kayaks must have end loops and bouyancy.
All paddlers must wear an approved buoyancy vest and helmet.
The club is affiliated through Canoe Tasmania Inc. and is afforded insurance cover for such
events through Australian Canoeing Inc.
Response Strategies
Rescue personnel are strategically placed both on and off the water.
A comprehensive first aid kit is available at the course for all events. The club is fortunate to
have a high proportion of members with senior first aid certificates.
An emergency telephone is installed in the club shed.
The club is confident that it meets best practice in the management of its events and associated risks.
As such it is likely the club would be able to clearly demonstrate it has exercised its duty of care to
participants if ever called upon to do so.
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CASE STUDY 8
So....You think you have insurance!
A case study highlighting the importance of ensuring that your event
has suitable insurance.
Multi-sport is more than just sport. Its an adventure, a journey, and a challenge that demands skill,
experience, fitness, and endurance. Its also eco-sport; taking advantage of the wonderful natural
features of our land, with courses set over alpine moors, through majestic forests, and down wild
rivers. Cross country skiing, whitewater kayaking, running, and mountain biking are just some of the
skills demanded to negotiate courses.
There are three major one day multi-sport events established in Tasmania - The Ben Lomond
Descent, The Tasmanian Winter Challenge, and The Mersey Forest Descent. The organisers of each
are associated through canoeing and are the Tamar Canoe Club, The Tasmanian Board of Canoe
Education, and Canoe Tasmania respectively.
Operating on the basis of verbal advice obtained from the Australian Canoe Federation when the
events were first established, it was assumed that each event had cover afforded through the policy of
the ACF which extends to affiliated clubs and associations. (an insurance levy is a component of
affiliation costs)
In early 1998, the Tamar Canoe Club decided to organise a new multi-sport event in the Launceston
area. They were aware that Australian Canoeing Incs (formerly the ACF) insurer had recently
changed and thought it best to check the extent of the cover provided for such an event under the
new policy.
The reply received was that only canoe events were covered - multi-sport events were not. The
Tamar Canoe Club were rightly concerned that such a change had occurred in the cover provided by
the new policy and sought clarification from Australian Canoeing Inc.
The reply was that multi-sport events were definitely not covered - further they had never been
covered under previous policies. The original advice had obviously been incorrect.
It was indeed fortunate that the events had no need to claim against the insurance.
The lesson is clear - organisers of events should never assume that they have suitable insurance -
always check, and if possible receive written confirmation from the insurer or their agent, that cover
is provided and it meets the events requirements.
Footnote: At the start of 1999, Australian CanoeingInc. engaged a new insurer. The new policy has some
provision for multi-sport events, but not those which include XC skiing.
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CASE STUDY 9
Response and Recovery
Unplanned events can present risks that need to be carefully managed.
Cataract Gorge, nestled close to the centre of Launceston, is an area of great scenic beauty with a
blend of parklands, gardens, and natural bush. Managed by Launceston City Council, it is a popular
tourist attraction and provides a range of recreational opportunities including walking, swimming,
rock climbing, and whitewater kayaking. Central to the area is the First Basin, a natural amphitheatre,
which is the major access point and features a large grassed area with swimming pool, kiosk, chairlift
across the gorge, and a start to the walking tracks, particularly that leading to the suspension bridge.
In January 1997 a deliberately lit wildfire swept up through the southern side of the gorge from the
First Basin almost to Duck Reach. In addition to the immediate risks presented by the fire, there
were less obvious, but just as serious ones that would emerge. The intensity of the fire was such that
the steep southern side of the gorge, above the walking track to the suspension bridge and Duck
Reach, was completely denuded of vegetation and ground cover destabilising the steep, scree covered
slopes. Many rocks of varying size fell onto the walking track and grassy slopes above the pool during
the fire and continued to fall well after the blaze was contained. It was apparent that further
destabilisation was going to occur as soon as it rain fell with no vegetation to prevent erosion and
subsequent rockfall.
Launceston City Council evaluated the potential risk and commissioned consultants who responded
with a range of strategies to protect visitors to this popular area. These included:
Immediate closure of the walking track to Duck Reach and the Suspension bridge with
comprehensive barriers and signage, and fencing off the grassy slopes above the pool.
A specialist access company with rock stabilisation experience was contracted to scour the
slopes above the track from the First Basin through to Duck Reach to dislodge suspect rocks.
The councils specialist tree crew cleared the slopes immediately above the track of fire
damaged trees.
An inspection and monitoring program was introduced. Initially inspections would be daily
and after rain periods with reduced frequency as time went on. Rock falls are recorded which
will build a picture allowing council to identify and tackle particular trouble spots.
Steel gates have been installed at critical access points which are closed during heavy rain.
Signage has been erected warning visitors of the danger of rockfall.
As vegetation is a critical stabiliser of such slopes, revegetation of some slopes has been assisted
with seeding of endemic plants.
The slopes above the walking track are inherently unstable, rendered more so by the fire. Realistically
no amount of work could guarantee rocks would not fall. The approach taken by Council is practical
and reasonable in managing the increased risk of rockfall presented in the aftermath of the fire.
Visitors to such areas must accept some risk. In the event that a visitor is struck by a falling rock, it is
likely that LCC would be found to have exercised its duty of care by taking reasonable steps to
prevent the occurrence, and alerted walkers to the potential hazard.
9.33
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10.1
USEFUL INFO
The Resources and Information section lists many significant sources of information, but many less
specialised or less substantial sources should not be overlooked.
Risk management is a topical item for sports magazines, journals, and professional publications. Some
articles may be of particular interest and worth retaining for future reference in this section.
In fact this section may be used to retain any item of interest in risk management which you may
find - and if you do, dont be afraid to share it around.
Its also worth keeping a note of when you insert information and its source.
Item Source Date
The Value of Waivers Network October 1997
Incorporation: the Whys and Wherefores Business of Sport
Negotiating Contracts Sports Update January 1998
Law - Football The Australian 1997
Sports Injury The Bulletin July 1997
Sports Injury Sports Coach January 1997
Volunteer Officials in Sport Women in Sport
Exercise HQ May 1997
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10.2
Item Source Date
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GLOSSARY
risk is the chance of something happening which will impact on objectives. It is
measured in terms of consequences and likelihood
objectives freedom from loss, harm, or liability
consequence the outcome of an event expressed as a loss, injury, disadvantage or gain
likelihood used as a qualitative description of probability and frequency
risk management a systematic and rational approach, through the application of management
policies, procedures and practices, to the identification, evaluation and
treatment of risk
hazard a source of potential harm or loss
loss any negative consequence, financial or otherwise
organisation any group, club, or association formed for the purpose of participating in or
delivering sport and recreation services
risk identification the process of determining what can happen, why and how
risk analysis determining the level of risk through how often an event is likely to occur and
the severity of the likely consequences
risk evaluation comparing the level of risk determined against standards imposed on or by the
organisation to determine whether the risk is acceptable or unacceptable
risk treatment the selection and application of appropriate measures to deal with risk
risk audit a method of evaluating performance in risk management through the use of a
diagnostic questionnaire
11.1
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REFERENCES
Risk Management & Insurance
April 1994
Marianne Robinson - paper presented to ASC conference
Legal Issues for Non-profit Associations
1996
edited by Myles McGregor-Lowndes, Keith Fletcher, AS Sievers
Philosophy & Perception of Risk
May 1997
Owen G. Ingles - paper prepared for Office of Sport & Recreation seminar
Australian / New Zealand Standard 4360: Risk Management:
1995
Standards Australia
Managing Risks in Outdoor Activities
1993
Cathye Haddock - New Zealand Mountain Safety Council Inc.
Managing Risk - Guidelines for Managing Risk in the APS
July 1995
Management Advisory Board & Management Improvement Advisory Committee
Management of Risk in Sport & Recreation (Tasmania)
July 1996
Dennis Keats - discussion paper for management
Identification & Measurement of Risk
1992
Author unknown - paper presented to ARIMA course
Risk Management
1996
Linton Kerber - paper prepared for northern indoor facility managers meeting
Insurance as Part of a Risk Management Strategy
May 1996
Colin Dawson - paper presented to Risk Management in the Outdoors Conference - ORCA
Risk Management & Safety Manual Outline
Draft 1 June 1996
Dunhill Madden Butler - Solicitors
12.1
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Legal Responsibilities & Risk Management for Sports Officials
1995
Australian Sports Commission (Graeme Murphy)
Sportsafe Australia - A National Sports Safety Framework
23 June 1997
Australian Sports Injury Prevention Taskforce
Local Government Sport & Recreation Provision in Australia
November 1995
Jak Carroll for the Confederation of Australian Sport
12.2

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