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running the risk?risk management tool for
volunteer involving organisations
funded by the commonwealth department
of family and community services
Published in 2003 byVolunteering Australia Inc.Suite 2, Level 311 Queens RoadMelbourne 3004t 03 9820 4100f 03 9820 1206w www.volunteeringaustralia.orgarbn 062 806 464
© Commonwealth of Australia 2003This work is copyright. You may download, display, print and reproduce this materialin unaltered form only (retaining this notice) for your personal, non-commercial useor use within your organisation. Apart from any use as permitted under the CopyrightAct 1968, all other rights are reserved. Requests for further authorisation should bedirected to the Commonwealth Copyright Administration, Intellectual PropertyBranch, Department of Communications, Information Technology and the Arts,GPO Box 2154, Canberra ACT 2601, or by email to the following address:[email protected]
National Library of Australia Cataloguing-in-Publication entry
Running the risk ? : a risk management tool for volunteer-involving organisations.
ISBN 0 95788556 3
1. Voluntarism – Australia – Management. 2. Riskmanagement – Australia. I. Volunteering Australia.
361.37
AcknowledgmentsVolunteering Australia would like to acknowledge and thank the Department ofFamily and Community Services for the funding which made this publication possible.
We would also like to convey our grateful thanks to the members of the project’ssteering committee for their time and advice throughout the publication’s development.Specifically, our thanks go to Carol Burnett (Volunteering Victoria Inc.), Gavin Deadman(AON Risk Services Australia Ltd.), Tim Edwards (Department of Family and CommunityServices), Anita Hinton (Eastern Volunteer Resource Centre), Cecelia Irvine (MooresLegal) and Myles McGregor-Lowndes (Centre for Philanthropy and Nonprofit Studies,Queensland University of Technology). We have enjoyed working with you all.
Finally we would like to thank those volunteer organisations who have assisted us byproviding relevant case studies of the ways that they have managed some of their risks.
Designed by Umlaut DesignCover Image by Shannon PawseyEdited by Jennifer LordPrinted by Mercedes Waratah Press
DisclaimerThis risk management booklet is intended to provide general and useful information.However, it is not proposed to be comprehensive legal advice. Readers are advisedthat before acting on any matters arising in this risk management booklet, theyshould seek specific legal advice about their situation.
The impact of the recent worldwide ‘crisis’ in insurance on the manyvolunteer involving organisations that work within our communitieshas not gone unnoticed. Over the past two years organisations havebeen reporting significant and, in some instances, devastating increasesin the cost of insurance premiums. Perhaps of more concern are thereports of a failure to acquire insurance coverage at all. It is in the areaof public liability insurance that the effect has been most felt.
While governments and the community have sought to find solutionsto the current situation and various responses have been proposed andimplemented in the different jurisdictions, one common feature has beenthe heightened interest in organisations’ risk management practices.
Organisations have been challenged to think about whether they areappropriately managing the daily risks that they face. Is the workplacesafe? Are clients protected from physical and other harm? Are volunteersprotected? Has everything that can reasonably be done to prevent injuryor other negative consequences been done?
When considered as a whole, risk management can seem intimidating.It is a process that must be carefully worked through and the particularneeds of each organisation taken into account. However, with the righttools the process of developing effective risk management strategieswill be a lot less daunting.
This publication is intended to be one such tool. Volunteering Australiahas produced Running the Risk? specifically to help volunteer involvingorganisations identify the range of risks that might affect them and theirvolunteer staff alike and implement strategies to deal with these risks.
We hope that you find this a useful tool and welcome your feedbackeither on the enclosed feedback form or via e-mail:[email protected]
Ignoring the risks that arise from both your core and your special activitiesis a dangerous strategy. Managing those risks properly will protect yourorganisation and will give managers, staff and volunteers the confidence topursue the organisation’s mission without the fear of legal action or harm.
Volunteering Australia
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Foreword
How to Use This BookletThe step-by-stepoutline of the riskmanagementplanning processand the tools givenin this publicationare intended asguides that you canadapt to suit yourorganisation’s needs.The publication isdivided into anumber of sectionswhich can be used in different ways.
Why Manage Risk?Explains what risk management is, how it differs from legalcompliance, and how it fits in with the National Standards forInvolving Volunteers in Not-for-Profit Organisations.
Frequently Asked QuestionsMore legal and policy reasons why you need to manage risk.
Arriving at a Risk Management ProgramThis ‘how-to’ section will help the working group or project teamresponsible for producing your risk management program. Itcontains project planning guidelines and a clear and simple 4-step guide to identifying and treating risks.
Risk Identification ToolkitThe checklists and practice audit in this section can be used in trainingsessions to get staff and volunteers thinking about risk, or as actualchecklists to give your team when you start to prepare your plan.
Case StudiesDifferent organisations manage risk in different ways. The casestudies show how several not-for-profit organisations have app-roached risk management and how it can benefit your organisation.No 1 illustrates the court’s attitude to the duty of care owed bynot-for-profit organisations to their volunteers. No 2 (the NationalSafety Council, Victoria Division) illustrates some of the pitfalls thatofficers face in governing not-for-profit organisations. Nos 3, 4and 5 include examples of risk management documentation andillustrate how Surf Life Saving Queensland, a Meals on Wheelsunit, and a centre for hearing-impaired children are planning tomanage some of the risks they face in providing their services.
FormsA sample blank Risk Register, Risk Treatment Schedule and RiskAction Plan. Photocopy or adapt these to meet the needs of yourorganisation. Or download in PDF from www.volunteeringaustralia.org
GlossaryA guide to key terms in risk management.
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Every manager of a not-for-profit organisation knows that there can besurprises for the organisation at any time, both good and bad. A volunteerboard member may suggest a new funding source or service opportunitythat could help the organisation toward achieving its mission. Equally, astaff member or volunteer may provide an inappropriate service that endsin a legal dispute, or may carelessly or accidentally do something resultingin harm to themselves or others.
These events can have a serious impact on the not-for-profit organisation’seffectiveness, as well as on the physical or financial welfare of volunteers,staff or other stakeholders. These impacts may be:• legal actions which deplete the organisation’s finances,• legal actions personally against the board, senior employees or volunteers,• distraction of management in dealing with crisis situations, and• adverse publicity affecting the organisation’s reputation.
Some events have such devastating consequences for an organisationthat the risk of them happening cannot be left to chance. Many of theseimpacts can be avoided or dealt with systematically through a processknown as risk management.
What is risk management?Risk management is the process of managing your organisation’s exposureto potential liabilities. It does this by identifying risks in order to preventthem or reduce them, and by providing for funds to meet any liability ifit occurs.
Liabilities do not justarise from physicalrisks – they also arisefrom not meetingregulatoryrequirements, andfrom financial, moralor ethical issues.Why board members need to bevigilant about risk management – see Case Study 2.
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Why Manage Risk?
Risk management• increases your chances of succeeding in an activity or preventing a loss,• minimises the effect of a loss that could not be prevented,• gives managers, staff and volunteers the confidence to pursue their
mission without the fear of legal action or harm,• approaches risk in a structured and calculated manner, rather than
being haphazard.
Risk management is not• about getting as much comprehensive insurance coverage as possible,• about just avoiding legal action,• a tool of ‘control freak’ managers to stifle innovation and creativity,• about preventing the organisation from ever taking a calculated risk,• about creating excessive bureaucracy and excluding volunteers from
participating in the organisation,• an expensive consultant’s plan sitting in a glossy folder on your
library shelf.
Risk is a part of living in our society. The challenge is to treat the risks inan appropriate and cost-effective manner so as to protect the organisationand its stakeholders. This must be done without dampening out theinspiration of volunteers or the social entrepreneurial spirit of employeeswith inflexible bureaucratic rules and procedures. It requires in essencea cultural shift.
What is the difference between risk management and legal compliance?In working out what risks it faces, your organisation will probablyidentify the risk of incurring a penalty for breaking a law (for example, afine for not filing its annual audited financial report with a governmentagency). This type of risk should be dealt with by a legal compliance planrather than a risk management plan. This is because the law requires usto comply actively with (obey) legislative provisions, regardless of cost. Riskmanagement – making a plan about how your organisation will managethe risk of failing to comply and being discovered in non-compliance, and/or how you will fund the fine – isn’t an option.
This publication is a tool for preparinggeneral risk management strategies,rather than plans dealing specificallywith legal compliance issues. Note thatStandards Australia has produced aspecific standard for legal complianceplans (AS 3806: 1998) which can help youto formulate a legal compliance plan.
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Where does risk management fit into Volunteering Australia’s National Standards?The National Standards for Involving Volunteers in Not-for-ProfitOrganisations represent best practice in the management of volunteers.They are a generic set of guidelines produced by Volunteering Australiafollowing extensive consultation with the volunteer sector. Riskmanagement is part of that best practice.
According to the Management Responsibility standard (clause 2.5), anorganisation should ‘apply systematic risk management processes andpractices to the tasks of identifying, analysing, assessing and monitoringrisk for such matters as:a volunteer/customer dissatisfaction;b unfavourable publicity;c mismanagement;d threat to physical safety of volunteers/customers;e failure of equipment or computer systems;f a breach of legal or contractual responsibility;g fraud;h deficiencies in financial controls and reporting.’
The standard asks ‘Are effective methods established to treat, avoid, orminimise any emerging or potential risks?’ (clause 2.6). The standardhighlights volunteer recruitment, selection, orientation and workplacehealth and safety as key areas for risk management (clauses 3 and 4).
Each organisation should have a policy and procedural framework thatgoverns the way its volunteers are managed. A risk management programis part of that framework.
Standards Australia also has a standard on risk management whichprovides a generic guide for establishing and implementing riskmanagement, and can be applied to community enterprise. It performsa similar function to the National Standards of Volunteering Australia,but is specific to risk management. The material in this publicationrelies on this standard and readers are encouraged to consult it(AS/NZS 4360:1999, available from http://www.standards.com.au ).
How do you find out about changes to laws?There is no single easy way to do this.You can find out about changes to laws and standards relevant to yourorganisations’s activities by:• using the knowledge of your board
members and voluntary professionaladvisors,
• supporting continuing professionaleducation for your paid staff,
• monitoring information from peakindustry and service associations,
• subscribing to information services,journals and other publicationsfrom government departments,commercial legal publishers andprofessional organisations,
• monitoring reliable legal andgovernment websites.
Looking up legislationYou can look up all state and federallegislation (Acts and Regulations) aswell as many court decisions on theAustralian Legal Information Institute’ssite at http://www.austlii.edu.au andthe federal Attorney-General’sDepartment’s database athttp://SCALEplus.law.gov.au Most stategovernments also have a websitecontaining the legislation that appliesin that state, as well as Bills (proposedlegislation) being considered by thestate Parliament.
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We are fully insured, why do we need risk management?Insurance is only one way to manage the risks facing an organisation.It may not be the best way of managing a risk because:• it may cost much more than other ways of controlling risk,• it does not achieve the preferred outcome (preventing harm), it only
compensates after the event/injury,• it may not cover all risks and may be capped to a ceiling, and• it depends on the insurance company being solvent and able to pay
the compensation at the time of the claim.
Do we still need a risk management plan if volunteers in our state are protected by volunteer protection legislation?The Commonwealth and some states in Australia are following theAmerican example of passing laws to protect certain volunteers frombeing personally sued under certain conditions. The volunteer’s liabilityis transferred to the community organisation, which may then be ableto be sued for the actions of its volunteer. Your risk management plantherefore needs to take into account the provisions of any volunteerprotection legislation in your state.
Note that this type of legislation does not give all volunteers a blanketimmunity in all circumstances. (It may not apply, for example, if thevolunteer was involved in a motor vehicle accident, was affected by alcoholor certain other drugs, or was acting outside the scope of the activitiesauthorised by the community organisation or contrary to its instructions.)
Why do volunteers need to be part of our risk management plan?A not-for-profit organisation is responsible for the actions of its volunteersand paid staff. Inappropriate volunteer behaviour can seriously harm andprevent a not-for-profit organisation from achieving its mission. Volunteers,like employees, are a valuable resource to your organisation and shouldbe part of any risk management system. Including volunteers in your riskmanagement system will help protect both your organisation and yourvolunteers. The various volunteer protection Acts do not lessen the needfor appropriate risk management strategies.
To find out whether your state haspassed volunteer protection laws,contact the Volunteering Centre inyour state or territory. See the backcover for contact details.
For an example of an organisation’s dutyof care to volunteers, see Case Study 1.
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Frequently Asked Questions
Will imposing risk management plans and expectations on volunteers make it harder to recruit and train volunteers?Volunteers want to enhance the resources of a not-for-profit organisation,not deplete them. They want to help it to achieve its mission, not hinderit. Most volunteers want to be part of a well-managed organisation thatconsiders their needs and rights, and gives them proper training thatenables them to maximise their contribution. Appropriate riskmanagement plans which are clearly communicated will reassurevolunteers and give them confidence about working for the organisation.
What are some common mistakes in risk management plans?• They are formally prepared, but never implemented or regularly revised.• They cover the risks that are easy to treat and leave the difficult
risks untreated.• They rely too heavily on insurance as a strategy.• They assume the organisation’s insurance covers risks that it does not.• The risk management plan is not amended when insurance policies
alter or new activities begin.
Wouldn’t it be easier just to copy another organisation’s risk management plan?Not-for-profit organisations are diverse, even within the same sector. Arisk management plan will be quite different even for similar organisationsbecause of variables such as size, organisational culture, propertyownership and leadership. You are far more likely to identify all of the risksrelating to your organisation by working through the process of planningyour own risk management strategy, than by just blindly copying anotherorganisation’s work. An understanding of what risk management meansand an ownership of the strategy to protect and enhance the missionof your organisation are essential.
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Like many management processes, the process for establishing andmaintaining a risk management program is continual and cyclical. Ifyour organisation has already adopted a strategic planning process, riskmanagement planning can be complementary to it.
How you approach risk management planning will depend on the size,activities, internal environment and management structure of yourorganisation. Some boards, because of their organisation’s size andcomplexity, will delegate the task to the Chief Executive Officer, whomay seek external professional assistance; other boards with few or nopaid employees will do it themselves or form a volunteer task group toassist them.
Another common variation is the scope of the risk management plan.Large organisations may need comprehensive risk management planningbut in smaller organisations specific areas of activity can be chosen forrisk management. All organisations, whatever their size, need at leastto have a risk management plan for workplace health and safety andrecruitment of volunteers.
How to get thereThere is no point in producing a risk management plan that is too hardto implement, that does not have organisational support, or that no oneunderstands or knows about. Before considering what risks need to bemanaged, put a process in place that will support the development ofan appropriate program and help it to be effective. The planning pathway,on the left, which is consistent with the step-by-step guide toimplementing volunteer policies suggested in the ImplementationGuide for the National Standards for Involving Volunteers in Not for ProfitOrganisations, should help.
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Arriving at a RiskManagement Program
planning pathway
identify the benefits and
challenges of implementing
risk management
gain the support and
commitment of senior
management
establish a team to manage
and co-ordinate
risk management
develop a plan to
guide the project
promote and communicate
the plan to your
key stakeholders
investigate the issues and
options and design the risk
management program
establish the
program
infrastructure
prepare the
program
documentation
implement, monitor and
review the risk
management program
Remember• Follow the policy development process
suggested by the National Standards– it becomes easier the more you do it.
• Risk management strategies can bedeveloped area by area, rather thanall at once.
• Communication with all stakeholdersis vital.
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Pay particular attention to how you are going to obtain board supportfor the plan and communicate the plan throughout the organisation.Choosing the right team to lead the process is also very important indeveloping a comprehensive and appropriate risk management plan. Theindividual or team must be able to communicate well with the relevantstakeholders, and needs to have an excellent knowledge of the activities,dynamics and history of the organisation; an awareness of the law; and aknowledge of insurance. Where a volunteer task group is required, lawyers,insurance brokers or agents, auditors or accountants, and former chairsmay all be suitable. Former office-bearers are often useful because oftheir long experience with the organisation. The choice of who will chairthe working party is crucial – they must have the drive to see the projectthrough the first cycle, which can be a demanding task.
Not-for-profit organisations with links to state and federal bodies maybe able to seek help from those organisations. Peak bodies of churches,service clubs, sporting codes and other interest groups can often alsoprovide member organisations with information on common issuesthat will help them formulate a risk management strategy.
What to include in your planOnce the decision to prepare a risk management plan has been made andcommunicated across your organisation, you can move on to work on theplan itself. Its content will be determined by the four steps outlined inthe chart below, which deal specifically with identifying, assessing andmanaging risk. They are discussed in more detail in the following pages.
implement,
monitor
and review
communicate
and consult
evaluate risks
identify risks
design a
management
program
identify
treatment options
- risk avoidance
- risk control
- risk financing
- risk transfer
Identifying risks involves making a systematic assessment of all the hazardsthat could arise from your organisation’s activities. This will require aknowledge of your organisation, its social and legal context, its missionand its activities.
Establishing the organisational context accurately will help you toidentify key issues:• How much financial risk can the organisation absorb? Are its assets
sufficient to meet potential liabilities?• How would a claim against your organisation, one of its employees
or volunteers affect its reputation and ability to achieve its mission?
For example, a not-for-profit organisation whose mission is to defendhealth professionals from malpractice claims would view the risk ofbeing sued as normal, whereas a not-for-profit organisation whosemission was to promote safe working conditions for volunteers wouldsuffer serious consequences if it was sued or prosecuted for failing toprovide safe working conditions for its own volunteers.
Understanding your organisation’s legal context is also crucial toidentifying the possible liability issues:• Is the organisation a corporation, an incorporated association or
something else? This will affect the legal obligations it has and theextent and nature of its liabilities.
• Where does it operate? In addition to federal law, will the laws ofonly one state or of several states apply? Will overseas jurisdictionsbe involved?
If your organisation is large or has diverse activities, other risk identificationstrategies may need to be employed. You may want to send a riskidentification survey form to key people in the organisation to helpcompile an inventory of risks.
The process of identifying risks needs to be as complete as possible forthe plan to be effective. While it can be time-consuming, the identificationprocess will become simpler with each plan you devise.
For help with identifying risks, turn tothe Toolkit on page 18.
Step 1:Identify the Risks
risk management tool for volunteer involving organisations
10 What are thepossible liabilities orhazards that faceyour organisationand its stakeholders– its officers,members, clientsand volunteers?
Not all the risks you identify will be significant, but some may have a goodchance of developing into a liability. Your organisation probably won’thave the resources to deal equally with all potential liabilities, so the nextstep is to rank them. For example, you may have identified both a potentialrisk of defamation in your volunteer-produced newsletter and the potentialfor physical injury to your volunteers or clients through negligence. Formost not-for-profit organisations, the injury through negligence is probablymore likely to happen than the defamation. In this example, treatingphysical injury risks first makes more sense than being concerned initiallywith the risk of defamation. This understanding can then be applied whenyou come to allocating scarce resources in the most effective way forcontrolling potential risks.
Ranking your risks statistically (ie. on the frequency with which they haveoccurred in the past) may be nearly impossible. Instead, a simple qualitativerisk classification may be enough. You can assign values to likelihoodand to consequences or impact as follows:
The likelihood of an event can be classified as:a (almost certain) The event is expected to occur in most circumstances.b (likely) The event will probably occur in most circumstances.c (moderate) The event should occur at some time.d (unlikely) The event could occur at some time.e (rare) The event may occur only in exceptional circumstances.
The consequence or impact of the event occurring can be defined as:1 (trivial) No action is required and/or low financial loss.2 (minor) No further action is needed at present, but
monitoring will be necessary to ensure thatcontrols are maintained.
3 (moderate) Efforts need to be made to reduce the risk, but thecosts of doing so need to be carefully considered.
4 (substantial) The activity should be halted until the risk has been reduced or sufficient control measures are in place.
5 (intolerable) The activity that gives rise to the risk should be prohibited – this may indicate that it needs to be part of a legal compliance plan.
How likely is a loss?How severe will itbe? How soon andhow often is it likelyto happen? Whatkind of danger doesit represent to yourorganisation? Who is exposed?
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Step 2:Evaluate the Risks
The two measures of likelihood and consequences can now be broughttogether in a ‘level of risk’ matrix.
level of risk
likelihood consequences or impact
1 2 3 4 5trivial minor moderate substantial intolerable
a (almost certain) s s h h h
b (likely) m s s h h
c (moderate) l m s h h
d (unlikely) l l m s h
e (rare) l l m s s
l – low risk: manage by routine procedures
m – moderate risk: management responsibility must be specified
s – significant risk: senior management attention needed
h – high risk:detailed research & management planning required at senior levels
While this is not as precise as a statistical ranking, it lets you prioritisethe risks facing the organisation, from those that threaten its existenceto those that are trivial. The main problem will arise when there are risksthat have very severe consequences but occur infrequently (eg. a seriouscyclone or earthquake). These high severity/low frequency risks are themost unpredictable and embody the greatest threat to the existence ofthe not-for-profit organisation.
You can use a Risk Register to record all the risks you have identified, theirlikelihood, their probable consequences and the risk priority. Rememberto revise the risk register periodically – the likelihood and consequencesof risks alter over time as circumstances change (see Step 4 on page 17).
See page 46 for a Risk Register proforma.Examples of completed risk registersare contained in the Case Studies.
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Once you have systematically identified and prioritised the risks facingyour organisation, you can start thinking about how to manage them.The resulting risk management program should be in the form of awritten policy document, approved at board level and adopted acrossthe organisation.
Risk management strategiesThe following strategies are commonly used to minimise risks:• risk avoidance• risk control• risk financing• risk transfer
These strategies are not mutually exclusive. Often there will not be a single‘best’ option, and the best way for you to manage a specific risk mightbe by using a combination of strategies, for example, controlling the riskand transferring it via insurance. Arriving at the best strategy involvesbalancing the cost of implementing it with the benefits derived fromlessening the risk, or with the opportunities afforded by taking the risk.
What are the mosteffective and cost-efficient controls youcan use to prevent orreduce the probabilityof an event occurringand to minimise thecost of a loss?
What will be thebenefit? Is thebenefit worth thecost of control?
Case Studies 3, 4 & 5 show how three not-for-profit organisations have producedAction Plans to manage risks effectively.
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Step 3:Decide on the Strategies
Risk avoidanceAn organisation decides to avoid the risk altogether by not entering intothe activity or providing the service.
Risk avoidance is both the most overlooked and the most misusedstrategy. Sometimes organisations whose core activities pose minimaland manageable risks, undertake very risky fundraising activities (suchas, for example, rodeos, car rallies and air shows). Some activities are sorisky that the organisation has to say ‘no’ and mean it. On the otherhand, some organisations have closed down merely because insurancehas become too expensive or they have been denied coverage altogether,without looking at some of the options described below for adequatelymanaging or reducing the risks to acceptable levels.
Avoidance may not be an option for activities that form the core of anot-for-profit organisation’s existence. In addition, the strategy of completeavoidance may further marginalise and be detrimental to certain groups,such as people with disabilities, and in such circumstances must becarefully considered by some organisations.
Risk controlAn organisation decides to continue the activity which creates the risk,but to manage it so that it will be less likely to occur, or will be lessdamaging when it does occur.
If your organisation can’t avoid certain activities, then you must decidewhat you can do at an economic cost to reduce the risk or to soften theimpact of the event if it does happen. Often a combination of the two ispossible. This is probably the most used risk management strategy.
Such controls are merely good practice. They include the training that theorganisation gives its volunteers and staff, setting minimum qualificationsfor volunteers and staff, and making policies designed to minimiseliabilities arising from the organisation’s activities. These managementpolicies must then be recorded, communicated and understood by thosewho can act to prevent or minimise the liability.
The quality of the board of the volunteer involving organisation canalso be important in effective risk control. Having a board of committed,capable and qualified people who offer complementary knowledge andskills in areas such as accounting, law, management and professionalexpertise appropriate to the organisation’s activities is a good riskcontrol measure.
The rate of injury from the use oftrampolines in a youth sporting centre,despite upgraded supervision andtraining, may lead the organisation todrop the activity from its program. Or,an organisation sponsoring a ‘fun run’decides to cancel the event unless theappropriate standard of first aid care isavailable before the run starts.
A school council has a policy on safeplay equipment. The council may havedeveloped a procedure to ensure thatonly safe equipment is purchased andthat existing equipment is inspectedand maintained. To manage the riskeffectively, this procedure needs to beimplemented and clearly understoodby all those concerned.
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Risk financingAn organisation decides to provide resources to meet the liabilitiescaused by risks when they eventuate.
This entails estimating the cost of a risk over a period of time and buildingfinancial reserves to cover the cost of the eventual liability. It is like a self-insurance scheme. In more complex arrangements, it may involve not-for-profit organisations banding together to finance combined risks in‘insurance pools’. An example of sophisticated not-for-profit risk financingcan be seen in some large Australian religious organisations, particularlyfor their health-related activities.
Risk transferAn organisation decides to have a third party perform the risky activity,or to transfer the consequences of the risk to another person/organisation.
Most people immediately think about transferring the risk to an insurer.Insurance is available for risks of all kinds, but it is important to insure theright risk at the right price. Insurance brokers and agents can provide veryhelpful information and advice. Be aware, though, that some see theirjob as only to sell insurance. If you have any concerns about their advice,have it independently verified.
The kinds of insurance available to volunteer involving organisations aspart of their risk management strategies include:• Volunteer personal accident• Directors’ and Officers’ liability• Professional indemnity• Public liability• Motor vehicle insurance• Building and contents
There are other ways of transferring risk. These include indemnity orexemption from liability clauses, and sub-contracting the activity to anindependent contractor.
An indemnity is a promise to reimburse another for a loss suffered. In thisway, the person receiving the indemnity will not be responsible for a losswhich someone might suffer as a result of an act done at the request ofthe person giving the indemnity. For example, a not-for-profit organisationhires out toys to play groups. A play group may be required to indemnifythe not-for-profit organisations for any claims that a ‘user’ of the toy mayhave against them. For example, a user may be injured due to a defect inthe toy and be able to sue the not-for-profit organisation as well as theplay group. If the play group has provided an indemnity they would berequired to pay any claims against the not-for-profit organisation inrespect of the toy.
An exemption from liability clause is a term in a contract which limits orexcludes one party’s liability. They are common in standard form contractssuch as those used when you hire goods or leave your car in a parkingstation. For example, a car parking contract usually exempts the car parkowner from liability arising out of an accident in the car park.
Often a chain of church-operatedhospitals will agree to cover the first $1million of any claim from their reserves,any further amount of the claim beingpaid by an insurer. This assumption ofrisk for the first $1 million helps themto obtain insurance and can also reducepremiums. Such arrangements requireprofessional assistance because of theircomplex financial and legal nature.
A childcare centre obtains parentalconsent for a nearby medical practitionerto administer medication to children.The risk is transferred to the professionalmedical practitioner. There is less chanceof injury given the professional trainingof the practitioner and, if negligencedoes cause any injury, it will usually bethe burden of the doctor, not theorganisation.
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In recent years exemption and indemnity clauses have not been legallyvery effective, but they still have a role to play in discouraging smallclaims. Often an exemption clause is used in tandem with an accidentinsurance policy which can be purchased by a member, parent, participantor client. Such a policy has set entitlements on the happening of aspecified event – for example, up to $2,000 compensation for a broken legduring a football match. While the injured person may be entitled to suefor a greater amount, they accept the accident insurance payout and takethe matter no further.
Note that parents cannot readily sign away their child’s rights, contraryto the wording that appears on some indemnity forms. Conversely, in thevast majority of circumstances, a child (a person under 18 years) cannotenter into a legally enforceable agreement.
Risk may be transferred by contracting out the particular activity to anindependent contractor. The sub-contractor takes on the risk and liabilityfor the particular activity.
There are two issues to remember about risk transfer:1 Although the risk might be transferred by insurance, it does not
diminish the overall level of risk. For most not-for-profit organisations,the preferred option would be to prevent the harmful event fromoccurring. Insurance on its own may not be the most appropriate formof risk management.
2 Where risks are transferred to another party, a new risk arises that therisk may not be effectively transferred. An example is an insurancepolicy that is not honoured by an insurance company because of somelegal technicality or insolvency of the insurer. The same may occurwith an indemnity.
Does cost of the strategy outweigh the benefit?For all categories of risk, remember that the risk management processinvolves a cost/benefit approach to the treatment of risks (if the cost ofcontrolling the risk exceeds the benefits from control – reduce control).To give an extreme example, a volunteer working at your organisation’spremises could in theory be hit by a meteor. You could eliminate the riskby erecting a protective cage over the building, but only at huge expense.In this case, the risk is very low and the cost of risk management faroutweighs the benefit. Other ways of managing the risk could beconsidered or the risk could be left untreated.
A more typical example is when an organisation buys expensive insuranceto cover events that are unlikely to occur or could be more economicallydealt with through an alternative strategy or combination of strategies.For example, insuring an organisation for injury to its volunteers whenworking in a war zone could often be better handled by not havingvolunteers working in a war zone. Taking out an insurance policy designedfor a small for-profit business which includes events that would not affecta not-for-profit organisation, for example, spoiling of food in refrigeratorswhere the not-for-profit does not have a refrigerator, is another commonexample of cost outweighing any benefit.
Useful tools for documenting your programThe Risk Treatment Schedule at page 47allows you to list possible and preferredtreatment options, their cost-benefits,and the effect they will have on therisk. You can use the Risk Action Planat page 48 to work out how you willimplement the organisation’s preferredtreatment options.
risk management tool for volunteer involving organisations
16
Once you or your working group have developed a risk managementprogram, and it has been approved by the board or managementcommittee, the next critical step is to identify who in the organisationwill be responsible for implementing it. At the same time, the board ormanagement committee needs to set up a process for periodicallymonitoring the plan’s implementation and its effectiveness.
In addition, your organisation needs to ensure that the program is reviewedat least once a year, but also whenever there are any changes in the lawor the organisation’s activities. The likelihood and consequences of a riskmay also change over time.
An example of a risk management action plan follows. These will differwith the organisational structure of the not-for-profit organisation. Otherexamples can be found in Case Studies 3, 4 and 5.
risk action plan
risk: playground equipment.
recommended response: transfer risk by insurance, and manage the risk by
playground safety inspections, supervision of play and complete removal of
dangerous equipment.
proposed action: secretary to seek insurance cover for accidents in playground;
secretary to engage health and safety expert to assess playground safety;
volunteer parents to supervise play at all times; parent working bee to remove
old swings immediately (and until removed, swings to be made inoperative, and
warning signs posted).
resource requirements: secretary to be given discretion to engage professional
assistance of up to $500 to acquire a safety inspection and $1,000 for the insurance.
responsibilities: secretary of association.
timing: safety inspection report to be delivered within two weeks, insurance
cover note within 24 hours, immediate removal of old swings and immediate
supervision of the playground.
reporting and monitoring required: matter to be put in general business on
committee meeting agenda until resolved. once resolved, an annual self-assessment
of playground will be undertaken.
person responsible: secretary, ms jane smith date: 1/1/03reviewer: management committee
date: early jan. 2004
Is the programworking and whatchanges are needed?
Risk management programs aresuccessful when they are built into theculture of the organisation. Everyoneconnected with the organisation isexpected to play a part in controllingand minimising risks – it moves beyondbeing just a board function. Newvolunteers, board members andemployees need to be made aware ofrisk management as part of theirinduction, and employees and volunteersshould be encouraged to reportpotentially dangerous equipment,facilities or situations. Education,consultation and communication areessential elements in anyimplementation and monitoring of arisk management plan.
17
Step 4:Implement, Monitor and Review the Program
Look at all the ways your organisation could suffer a direct loss or becomeliable for someone else’s loss due to:
real property (real estate) lossloss of chattel or contents ( eg. through theft or vandalism)motor vehicles (owned or used by staff or volunteers)glass and signsinterruption of business or servicesloss of the organisation’s recordsloss or corruption of computer records or datafraud and theftproduct liabilitypublic liabilityprofessional negligencenegligence in delivery of servicescontractual liabilities(failure of) compliance with government grant conditionscausing a public nuisance, such as excessive noise and activity
The range of risks tobe managed by avolunteer involvingorganisation willdepend on its context,activities and specificprograms.
ChecklistTypical risk areas
Risk Identification Toolkitrisk management tool for volunteer involving organisations
18
Conduct an annual safety auditHire an independent auditor to inspect the organisation’s workplace(s)to evaluate the effectiveness of the occupational health and safetysystem. This would result in a written report to management.
Make regular workplace inspectionsManagers and supervisors use spot-checks to observe what hazardsexist. The inspection would involve consultation with supervisors,employees and volunteers, with a report being prepared formanagement.
Look at accident investigation reportsDevelop a set of procedures for investigating and reporting onaccidents to identify the hazards that contributed to an accident.
Look at illness and injury recordsKeep records of illnesses and injuries: these may reveal underlyingoccupational health problems over time. Many workplaces also provideagencies responsible for workers compensation with reports andstatistics based on claims.
Look at worker and customer complaintsMany workplace hazards are brought to the attention of managementthrough a complaint by an employee, volunteer or client.
Use the checklistsand examples in thissection to help youwith Step 1: Identifythe Risks.
19
Some ways to identifysafety risks in the workplace
Voluntary workers personal accident claimsMost common: trip/slip and fall injuriesPrevention strategy: Reduce or eliminate the risks posed by slipperypolished floors, loose floor covering, curbs and stairs.Common: lifting strains.Prevention strategy: Manage the risk in lifting wheelchairs and boxes outof car boots, assisting clients who have mobility impairment and shiftingheavy objects such as furniture or work materials. Options: volunteereducation, manual handling policies and eliminating the risk.
Property claimsMost common: burglary and malicious damage (vandalism) to premises,often during school holidaysPrevention strategy: Improve security via lighting, fencing, locks, alarmsand neighbourhood watch activities.
Motor vehicle comprehensive claimsMost common: damage to a car when reversing it out of a confined spacePrevention strategy: Educate drivers to this issue and design carparks toallow forward exit. Some organisations with large fleets encourage theirdrivers to reverse into a parking bay and to depart by moving forward.This appears to reduce the incidence of reversing claims.Common: damage from vandalism while parked or damage by anunknown vehicle/driverPrevention strategy: Store/garage vehicles in a secure location when notin use (this often means away from your premises).
Committee and board membersCommon: unfair dismissal of employeesPrevention strategy: Obtain proper professional advice before terminatinga contract of employment.
Professional indemnityMost common: claims for defamationPrevention strategy: Risk manage your organisation’s newsletters,magazines, internal discipline procedures and media interviews to avoiddefamatory statements. Be aware of the law of defamation, adoptpublishing and media guidelines for the organisation, and seek professionalassistance as appropriate before publishing or speaking to the media.
risk management tool for volunteer involving organisations
20 Think about howsusceptible yourorganisation is toany of thesecommon claims.*From the claims records of Aon Risk Services Australia Ltd
ChecklistCommon insurance claimsmade by Volunteers andVolunteer InvolvingOrganisations*
Human perils – actions of anindividual or small group. Is yourorganisation at risk from any ofthese actions? How can youminimise the damage?
ArsonChemical leakageConfiscationDiscriminationElectrical overloadEmbezzlementExplosion of human originFire and smoke of human originHarm caused by employeesHarm caused by volunteersIndustrial contaminationMolten materialsPollutionPower outageRiotSabotageShrinkageSonic boomTerrorismTheft, forgery, fraudUnfair dismissalVandalismVibrationWater leakageWorker strikes
Economic perils – large numbersof people respond to particularconditions. What can your organ-isation do to minimise the impactof each of these future changes?
Changes in consumer tastesCurrency fluctuationsDepression/recessionImpact of strikesInflationObsolescencePolitical circumstancesStock market declinesTechnological advancesWar
Natural perils – forces of naturewith no human intervention. Youcan take steps before and after anatural disaster to reduce itsdestructive effects. How likely iseach of these events? What canyou do to minimise or provide forany damage?
Cave-inCollapseDroughtEarthquakeErosionEvaporationFire of natural originFloodHailHumidity extremesIceLandslideLightningMeteorMildewMouldPerils of the air (eg. wind sheer and
clear air turbulence)Perils of the sea (eg. sandbars and
reefs)RotRustTemperature extremesTidesTidal wavesUncontrollable vegetationVerminVolcanic eruptionWaterWeedsWind
21
ChecklistExternal causes of loss
This exercise is designed to give you some practice in thinking about, andidentifying, potential risks. Imagine the premises of a small communitycentre that you may have recently visited. You are asked to be part of aworking group that has the task of developing a risk management planfor the physical risks associated with these premises.
Either individually or by brainstorming in a group, identify and groupindividual risks, and appropriate treatments, under the categories below.Try using the Risk Register provided on page 46 and apply Steps 2-4 ofthe risk management planning process (see pages 11-17).• Equipment purchases• Equipment supervision• Outside grounds condition• Site security• Dangerous goods and hazardous substances• Buildings – housekeeping• Furniture• Electrical equipment• Fire safety• Emergency egress• Money and valuables• Maintenance
If there are any other risk headings that you feel should be considered,then include these as well. The following example for ‘electrical equipment’is given as guidance.
risk management tool for volunteer involving organisations
22
Practice self-auditCommunity centre
Electrical Equipment1 Portable equipment and leads tested and tagged2 No broken plugs, sockets or switches3 Safety plugs for unused power points to prevent access by children4 No double adapters or piggy back adapters5 No frayed or damaged leads6 No temporary leads on floor7 No strained leads8 An approved earth leakage circuit breaker/safety switch installed and
tested by a qualified electrical contractor9 An adequate electricity surge protector10 Lightening protection11 Electrical switchboards enclosed in non combustible construction
and kept free of combustible storage material12 No portable electric heaters in use, should all be fixed clear of
combustible material13 External power line access secure and free from obstructions (eg. trees)
An example of one group’s work follows. You will probably identify manydifferent concerns and this merely reflects the diversity of activities andcontexts of not-for-profit organisations. A community centre that constantlyhas young children or elderly people on the premises, or that providesfacilities for minor medical procedures to be performed may have quitedifferent risks and issues which can be identified.
23
1 What to look for in Equipment1.1 Equipment Purchase, Installation and Maintenance• Does it comply with Australian Standards?• Is it covered by warranties?• Does it have adequate installation standards?• Has it been installed correctly?• Does playground equipment have trapping points for a child’s body,
arms, head, clothing etc.?• Have playgrounds and swimming pools been fenced to Australian
Safety Standards?• Has playground equipment been installed correctly, and over surfaces
which are:a) suitable (ie. bark, sand etc.)b) free of sharp objects (ie. glass, stone, wood fragments, metal etc.)?
• Have staff and volunteers been correctly trained in use of equipment?• Does equipment present slip/fall hazards?• Is equipment free of damage eg. splinters, loose parts etc.?• Does it have specific maintenance requirements?
Suggestions• Retain warranties in a safe place for future reference.• Carry out maintenance in the specified areas and manner and at
the specified frequency.• Appoint a ‘Principal Responsible Person’ (PRP) for all maintenance
activities.• Keep a register of maintenance, particularly when carried out by
outside personnel.
1.2 Equipment Supervision• Has training been provided and rules for use of equipment been
explained?• Have all supervisors been trained in ‘first aid’ procedures?
Suggestions• Appoint a ‘Principal Responsible Person’ for supervision/securing
away of equipment.
risk management tool for volunteer involving organisations
24
Sample self-auditCommunity centre
2 What to look for Outside2.1 Outside Grounds Condition• Are the grounds free of sharp objects (eg. broken glass, metal,
splinters etc.)?• Do they present any trip or ‘fall in’ hazards (eg. no open drains etc.)?• Are they kept free of objects (general equipment etc.)?• Are areas such as stairs and ramps maintained as ‘anti-slip’?• Are they adequately lit and clearly visible at all times?• Is the car park:
a) free of slipping/tripping hazards, andb) suitable for vehicle use (ie. no potholes, rocks etc.)?
2.2 Site Security• Are prevention systems (locks, bolts, gates etc.) maintained on all
access points?• Are installed alarm systems utilised and maintained?• Is the alarm system connected ‘back to base’ and being monitored
by a reputable security company?• Does the carpark have:
a) speed restrictions – clearly marked?b) adequate lighting?c) parking restrictions (zones etc.) -clearly identified?
Suggestions• Explain access rules, including those covering the carpark, to any
potential visitors (eg. contractors) to the site before granting access.
2.3 Dangerous Goods/Hazardous Substances• Are all hazardous substances stored in an appropriate, securely
locked cabinet?• Is dangerous goods storage segregated according to dangerous
goods class?• Are material safety data sheets (MSDS) kept in a readily accessible place?• Have staff received adequate instruction and training in the use of
hazardous substances and in appropriate safety procedures?
25
3 What to look for Inside3.1 Buildings – Housekeeping• Are there procedures to ensure that accidental spills or leakages are
immediately cleaned up?• Are premises free of sharp objects (eg. broken glass, metal, splinters, etc.)?• Are they free of tripping hazards (eg. torn carpets, cabinets in
thoroughfares, etc.)?• Are aisles and hallways clear and unobstructed?• Do stairs have ‘anti-slip’features where required and are they maintained?• Is food preparation/serving area clean? Does it have ‘anti-slip’ features?• Is it free of electrical cords of any kind?• Is there a facility hire agreement in place for when the building is
hired out for functions (eg. children’s parties)?
Suggestion• Appoint a ‘Principal Responsible Person’ to monitor, or arrange for
the monitoring of, the conditions of use of all electrical equipmentin the organisation.
3.2 Furniture• Is it stable to use and free of sharp edges?• Can any items present a danger through falling over?• Can any items be moved to a less safe position without authorisation?• Is furniture made from materials which will not burn easily?• Is it painted/covered in materials which are non-toxic and which
will not chip/flake or tear, presenting a risk of being swallowed?
Suggestion• Secure all heavy/moveable furniture (including tables/trolleys etc.)
to a suitable wall point .• Do not store heavy items on moveable furniture. Alternatively,
secure them to that furniture to prevent displacement.
3.3 Electrical Equipment• Are items in use governed by an approved Earth Leakage Circuit Breaker/
life safety cut-out switch, installed by a qualified electrical contractor?• Are all electrical switchboards enclosed in non-combustible
materials and kept out of combustible storage spaces?• Are switchboards regularly tested/checked by an approved electrical
contractor?• Is electric comfort heating fixed (preferred) or are there portable
units in use (not preferred)?
Suggestion• Have all electrical equipment, particularly any involved in food
preparation, tested/checked by an approved electrical contractor on a regular basis.
risk management tool for volunteer involving organisations
26
3.4 Fire Safety• Is the emergency number for fire prominently displayed near each phone?• Are fire extinguishers:
a) secured in place?b) easily accessible and in designated areas?c) in a condition suitable for immediate use?d) of a type appropriate to the conditions and exposures?
Suggestions• Have the centre’s fire prevention measures regularly inspected by a
qualified person.• Have a qualified person establish the location, number and type of
fire extinguishers.• Have all centre personnel trained in the use of fire extinguishers, etc.
3.5 Emergency Egress• Are evacuation procedures in place and known to all staff and volunteers?• Are emergency evacuation and fire drills regularly practised?• Are exit points unobstructed, are stairs free and clear of tripping
hazards, and are handrails secure?• Can all exit doors be opened from the inside with one hand and
without a key?• Is emergency lighting working, and tested regularly (AS 2293.2 Part 2)?
3.6 Money & Valuables• Are valuable items (cash, computers, VCRs etc.) kept in a locked/secure
area when not in use?• Is there a register of who holds keys and/or has access to the safe,
the cash box, secure areas, and other parts of the building?
Suggestions• Keep no money on the premises overnight if possible unless in
securely locked safe or strong room.• Ensure cheques are stamped ‘Not Negotiable’ to prevent fraud.• Keep petty cash in a lockable container with duplicate receipt book.
3.7 Maintenance• Do qualified personnel carry out the cleaning and maintenance of:
a) heating systems?b) air-conditioning systems?c) electrical systems, including fuses etc.?d) cooking equipment, including hoods, ducts, etc.?e) computer systems?
Suggestions• Record the dates and results of all system checks, the activities
subsequently undertaken and the name/organisation of thepersonnel completing the checks.
• Appoint a ‘Principal Responsible Person’ as the liaison for all such checks.
27
A not-for-profit touring theatre company was engaged by an arts promoterto perform Emma Celebrazione, a musical play, in over 22 regional venues.The theatre company was paid a flat fee for its performances and thearts promoter kept any profits.
In each regional centre, volunteers were recruited locally to act as extrasand as a chorus. Mary was a member of an association which performedand preserved traditional Italian dance. She was invited to be a chorusmember by an employee of a regional theatre (not the touring theatre).She came under the direction of the stage manager of the touringtheatre company.
After being in existence for many years, the touring company had becomean incorporated association in 1996. It staged professional productionsand, as a rule, involved no volunteers in any onstage or backstage capacity.Volunteers usually sold tickets or worked as ushers and did not performor work on set construction.
The cast pressed their costumes using an iron and ironing board ownedby the local theatre. They used their own spray-on ironing aid. The ironingboard was set up on a highly polished lino floor and some of the spray-on ironing aid had fallen on the floor during ironing. As Mary approachedthe ironing board, she slipped and fell backwards and sideways. She puther right hand out to break her fall and injured her right wrist.
Mary sued both the regional theatre and the touring theatre company.The arts promoter was not sued.
The judge found that Mary had slipped on residue from the spray whichhad reached the floor, and that it was matter of ‘commonsense andexperience’ that some spray was likely to fall on the floor and that itwould make the floor slippery.
The judge found that the fact that Mary was a volunteer made nodifference to the company’s duty of care.
risk management tool for volunteer involving organisations
28
Case Study: 1The Volunteer Performerand the Ironing Board
Case Study: 1The VolunteerPerformer and theIroning Board
Case Study: 2The Sleeping BoardMembers
Case Study: 3The VolunteerLifesaver and theDangerous RubberDuckie
Case Study: 4Volunteer FoodDelivery
Case Study: 5The AnnualChristmas Party
The judge found that the theatre company had a duty to keep theworkplace safe, that it had failed to do so, and that there were severalthings it could easily have done to prevent the accident and the damage.The judge found that the regional theatre management should also haveforeseen that there was a risk of the accident happening.
Both the regional theatre and the touring theatre company were orderedto pay damages to compensate Mary for her injury. [Queensland DistrictCourt, Case No. 113 of 1999]
The touring theatre company’s management was taken by surprise bythe judgment for several reasons:a) The company did not engage the volunteer, had no opportunity to screen
her nor to screen any pre-disposition she may have had to injury.b) The venue was provided by the regional Council and the company’s only
opportunity to inspect the venue was briefly before the accident occurred.c) The company had no contractual relationship with either the volunteer
or the regional Council. It was the intermediary arts promoter whohad contracted with over 22 regional venue providers.
d) The involvement of volunteers in any aspect of the company’s productionswas extremely rare. It was also rare for the company not to have fullcontrol over all aspects of a production. The company had no adequateprocesses and policy for transferring and managing unexpected risksin an unknown physical environment over which it had little control.
OutcomeThe touring theatre company has addressed the risks highlighted by theincident. In the main it has chosen to avoid the risk – it has not involved anyvolunteers since in either touring or local productions in a similar capacity.
29‘…the [company]owed [Mary] thesame duty of carethat it would haveowed had it paidher… she was in thesame position as anemployee.’
The National Safety Council Victoria Division (NSC) was a company limitedby guarantee incorporated in 1928. It was formed by a coalition of Victoriannot-for-profit agencies with the charitable object of promoting safetyawareness, particularly industrial safety. Membership of the company wasopen to all willing to subscribe to the constitution and pay an annualsubscription of one guinea. Members of the company guaranteed to eachpay one guinea ($2.10) if the company was wound up and unable to payits debts. All members had an equal vote to elect a council of five membersand 42 specified organisations had the right to appoint a representativeto the council. The specified organisations included a range of governmentagencies (police, fire service, railways) and not-for-profit organisationssuch as chambers of commerce, car clubs, trades unions and some privatecompanies (eg. Ford). The Council appointed an executive committeeconsisting of a President and representatives from 14 named associations.
The NSC carried out safety awareness programs which initially emphasisedthe workplace, but expanded to road and leisure activities. It was fundedthrough government grants and industry contributions, relying onvolunteers to perform most of its functions. In 1962 the Council fosteredthe establishment of similar organisations in the other states of Australiawhich became separate corporate entities. It was at this time that theNSC began to conduct a safety service to industry, specialising in on-sitetraining and safety auditing. In 1979 it purchased a fire tender and beganto develop emergency services.
In 1982 under the charismatic leadership of its chief executive, JohnFriedrich, the organisation expanded into providing unusual forms ofsearch and rescue. Its expansion was funded through commercial loansfrom financial institutions. The loans were secured against rescueequipment contained in sealed containers as arranged by the CEO. Mostcontainers were empty and so the security was illusory, and the loansobtained fraudulently. The accounts of the organisation were alsotampered with to show a better position, often in the form of illusorydebtors. There is also a suggestion that auditor’s reports qualifying theaccounts were tampered with by the chief executive before beingpresented to the board and lenders.
risk management tool for volunteer involving organisations
30
Case Study: 2The Sleeping Board Members
Over a number of years the popular press signaled the possibility of a fraud.These articles later proved to have been fairly accurate. As early as 1986the Bairnsdale Advertiser, a local paper, outlined extensive misgivingsabout the financial status of the NSC, while in August 1988 Channel10’s Page One expressed concerns about the Council and its operations.A large feature article in the Sydney Sun Herald by Wendy Bacon inOctober 1988 noted that the company’s accounts were puzzling, it wasunaccountable to the public, and discrepancies existed betweenequipment purchased and income received.
The matter was brought to a head when the board requested an independ-ent financial assessment and the chief executive fled. The company wasplaced into liquidation owing about three hundred million dollars.
The trial judge found that the company had been insolvent for nearlyfive years and that this could have been ‘fairly easily appreciated by anadult person of normal intelligence who had a general knowledge ofthe company’s activities and an inclination to consider the accountsand auditor’s report for half an hour.’
Some other findings of the judge were:• out of 18 board meetings held in one period, at 11 meetings there
were no accounts of any kind provided or discussed;• in another period, apart from the annual accounts, no accounts had
been discussed at a board meeting for almost a year;• no annual meeting was held in one year;• copies of accounts and reports were not sent to members before
annual meetings;• no financial controller was appointed as required by the company’s
constitution; and• the CEO was not properly supervised or monitored by the board.
The directors were sued in the civil courts for debts incurred whilst thecompany was insolvent. A settlement was negotiated with all directorsexcept the chairman of the company.The chairman was found liable to paysome $97 million to creditors. The executive officer faced several seriouscriminal charges but committed suicide on the eve of the trial.The auditorswere sued by the liquidator, who claimed professional negligence in thesum of $256 million. Again the matter settled out of court. It was reportedthat the auditors settled for $2 million without admitting liability.
As well as managing risks responsibly, committee members and boards mayneed to ensure that there is an appropriate legal compliance plan in placeto ensure absolute compliance with the law such as timely production ofannual accounts and reports, attention to scrutinising annual accounts andmonitoring the activities of senior staff and the organisation generally.
For further information about this case, see Commonwealth Bank ofAustralia v Friedrich (1991) 9 ACLC 946; 5 ACSR 115, and M. McGregor-Lowndes, ‘Not-for-profit Corporations – Reflections on Australia’s LargestNot-for-profit Insolvency’, Australian Journal of Corporate Law, Vol. 5,No. 4, 1995, pp. 417-441.
31Volunteer committeemembers anddirectors have thesame duties andresponsibilities aspaid directors andface similarconsequences fordefaults. These risksmust be managedresponsibly.
Surf Life Saving Queensland (SLSQ) is a not-for-profit association assistingQueensland Surf Life Saving Club branches, and is also a member of theNational Surf Life Saving Association.
Like many other not-for-profit organisations, the association and itsbranches have been under pressure from the public liability insurancecrisis. This is highlighted by a number of recent public cases where injuredsurfers are suing rescue authorities.
Research to identify its risks found that 40% of all insurance claims inrecent years were for injuries to members caused by the use orinappropriate design of inflatable rescue boats (IRBs). The associationrealised that it would be at risk in a number of ways if it did not dealwith the IRB problem.
Managing the risks posed by the IRBs was clearly a priority for theorganisation. A committee worked through a risk register and risktreatment schedule and prepared a risk action plan (see the followingpages) which is being implemented. The plan will develop over time asnew national risk management strategies become approved.
risk management tool for volunteer involving organisations
32
Case Study: 3The Volunteer Lifesaver andthe Dangerous Rubber Duckie
Volunteers form thebackbone of thelifesaving movementand it is importantthat they are freefrom unacceptablerisks and being partyto litigation.
Risk
Reg
iste
rfu
nc
tio
n/a
ctiv
ity
co
mp
ile
d b
y
re
vie
we
d b
y
da
te
da
te
ris
k r
at
in
g
lik
elih
oo
d
ra
tin
g
co
ns
eq
ue
nc
e
ra
tin
ga
de
qu
ac
y o
f e
xist
in
g c
on
tr
ols
lik
elih
oo
d
Phys
ical s
afet
y an
d w
elfa
re o
f mem
bers
Fina
ncia
l los
s to
the
body
from
clai
ms b
y m
embe
rs fo
r foo
t and
knee
inju
ries a
nd
mor
e se
rious
out
com
es
Repu
tatio
nal d
amag
e –
dam
age
to ke
y sp
onso
rshi
ps a
nd re
latio
nshi
ps w
ith
fund
ing
bodi
es a
nd th
e ab
ility
to a
ttra
ct
and
reta
in m
embe
rs
Pers
onal
fina
ncia
l and
repu
tatio
nal r
isk
to co
mm
ittee
mem
bers
and
seni
or
man
agem
ent
Insu
ranc
e ris
k – e
vent
s and
com
petit
ions
m
ay b
ecom
e un
insu
rabl
e an
d on
goin
g w
orke
rs co
mpe
nsat
ion
incr
ease
in co
st
Pers
onal
inju
ry
Fina
ncia
l
Fina
ncia
l and
loss
of
publ
ic tr
ust
Har
m to
repu
tatio
n of
m
embe
rs. L
eadi
ng m
embe
rs
of b
usin
ess c
omm
unity
of
boar
d co
uld
also
suffe
r
Insu
ranc
e co
vera
ge
beco
min
g de
pend
ent u
pon
appr
opria
te ri
sk
man
agem
ent s
trat
egie
s in
pla
ce. H
ighe
r cos
t or
unav
aila
ble.
Hig
h
Med
ium
/Hig
h
Hig
h
Hig
h
Hig
h/M
ediu
m
Not
cons
ider
ed a
dequ
ate
– st
ate,
loca
l and
na
tiona
l app
roac
h re
quire
d
As a
bove
As a
bove
Dire
ctor
s’ &
Offi
cers
’ insu
ranc
e po
licie
s in
plac
e, bu
t exp
ensiv
e.
Insu
ranc
e un
affo
rdab
le w
here
risk
not
pr
oper
ly m
anag
ed.
Hig
h
Hig
h
Hig
h
Hig
h
Hig
h
Hig
h
Hig
h
Hig
h
Hig
h
Hig
h
Hig
h
Hig
h
Hig
h
Hig
h
Hig
h
Use
of I
nfla
tabl
e Re
scue
Boa
ts (I
RBs)
co
ns
eq
ue
nc
es
co
ns
eq
ue
nc
es
of
an
ev
en
t h
ap
pe
nin
g
th
e r
is
ks
– w
ha
t c
an
ha
pp
en
an
d h
ow
33
Risk
Tre
atm
ent S
ched
ule
and
Plan
fu
nc
tio
n/a
ctiv
ity
co
mp
ile
d b
y
re
vie
we
d b
y
da
te
da
te
ho
w t
o m
on
ito
r
th
e r
is
k a
nd
th
e
tr
ea
tm
en
t o
pt
io
ns
tim
eta
ble
fo
r
imp
lem
en
ta
tio
n
pe
rs
on
resp
on
sib
le f
or
imp
lem
en
ta
tio
n
co
st/b
en
ef
it
an
aly
sis
re
su
lt
(a
cc
ep
t/r
eje
ct)
ris
k r
at
in
g
af
te
r
tr
ea
tm
en
t
tr
ea
tm
en
t
op
tio
ns
pr
ef
er
re
d o
pt
io
ns
ris
ks
in
pr
io
rit
y o
rd
er
(f
ro
m r
is
k r
eg
is
te
r)U
se o
f Inf
lata
ble
Resc
ue B
oats
(IRB
s)
Phys
ical s
afet
y and
wel
fare
of
mem
bers
As a
bove
Fina
ncia
l los
s to
the
body
fro
m cl
aim
s by
mem
bers
Repu
tatio
nal d
amag
e (a
ffect
ing
spon
sors
hips
, fu
ndin
g, m
embe
rshi
p)
Pers
onal
fina
ncia
l and
re
puta
tiona
l risk
to
com
mitt
ee m
embe
rs a
nd
seni
or m
anag
emen
t
Insu
ranc
e ris
k – in
crea
sed
cost
and
/or l
oss o
f cov
er
Avoi
d/M
anag
e ris
k
As a
bove
Man
age
risk
Man
age
risk
Man
age
risk
Man
age
risk
Avoi
d ris
k for
eve
nts
Man
age
risk f
or o
pera
tiona
l res
cues
Redu
ce in
ciden
ce o
f inj
urie
s by:
i)Im
prov
e tr
aini
ng;
ii)Ch
ange
aw
ards
stru
ctur
e to
rew
ard
safe
ty a
spec
ts o
f com
petit
ion;
iii)C
hang
e qu
alifi
catio
ns to
ope
rate
IRBs
– n
ew C
rew
pers
on C
ertif
icate
;iv
)Cha
nge
even
t rul
es –
no
mod
ified
craf
t to
be a
llow
ed;
v)Ch
ange
des
ign
of cr
aft –
new
twin
hul
l cu
rren
tly b
eing
des
igne
d.
Med
ia li
aiso
n pe
rson
and
use
of w
ebsit
e an
d m
ater
ials
to sh
ow co
mm
unity
that
act
ion
is be
ing
take
n
Ensu
re D
irect
ors’
and
Offi
cers
’ cov
erag
e is
as
com
plet
e as
pos
sible
; boa
rd to
clos
ely
scru
tinise
risk
Neg
otia
tions
and
clos
e re
latio
nshi
p w
ith
insu
rer
Low
Med
ium
Med
ium
Med
ium
Med
ium
Med
ium
Acce
pt
Acce
pt
Acce
pt
Acce
pt
Acce
pt
Acce
pt
CEO
CEO
CEO
CEO
CEO
/Boa
rd
CEO
/Boa
rd
Imm
edia
tely
Ong
oing
Imm
edia
tely
Ong
oing
Ong
oing
Ong
oing
Ong
oing
Wor
kpla
ce C
omm
ittee
an
d IR
B Co
mm
ittee
As a
bove
Wor
kpla
ce C
omm
ittee
an
d IR
B Co
mm
ittee
Risk
Man
agem
ent
Subc
omm
itee/
Wor
kpla
ce
Com
mitt
ee
Risk
Man
agem
ent
Subc
omm
itee/
Wor
kpla
ce
Com
mitt
ee
Risk
Man
agem
ent
Subc
omm
itee/
Wor
kpla
ce
Com
mitt
ee
risk management tool for volunteer involving organisations
34
Risk
Act
ion
Plan
fu
nc
tio
n/a
ctiv
ity
pe
rs
on
re
sp
on
sib
le
re
vie
we
d b
y
da
te
da
te
ris
k
re
co
mm
en
de
d r
es
po
ns
e a
nd
im
pa
ct
re
so
ur
ce
re
qu
ir
em
en
ts
re
sp
on
sib
ilit
ie
s
tim
in
g
re
po
rt
in
g a
nd
mo
nito
rin
g r
eq
uir
ed
Use
of I
nfla
tabl
e Re
scue
Boa
ts (I
RBs)
Inju
ries t
o m
embe
rs a
nd vo
lunt
eers
whe
n us
ing
infla
tabl
e re
scue
boa
ts (I
RBs)
in e
vent
s an
d re
scue
s
a)av
oid
the
risk f
or e
vent
s unt
il Au
stra
lia-w
ide
risk m
anag
emen
t str
ateg
ies p
ut in
pla
ceb)
man
age
the
risk f
or re
scue
s as t
here
are
curr
ently
no
acce
ptab
le a
ltern
ativ
es to
IRBs
c)se
ek a
nat
iona
l app
roac
h w
ith co
mm
on st
anda
rds a
cros
s Aus
tral
ia
To b
e ca
lcula
ted
pr
op
os
ed
Ac
tio
ns
a)Es
tabl
ish a
stat
e-ba
sed
Wor
kpla
ce In
jurie
s Man
agem
ent T
eam
whi
ch h
olds
regu
lar
mee
tings
to re
view
wor
kpla
ce is
sues
, and
take
out
Wor
kcov
er fo
r mem
bers
;b)
Esta
blish
Aus
tral
ian
IRB
Revi
ew C
omm
ittee
– a
lso a
n et
hics
com
mitt
ee h
as se
nt o
ut
peop
le to
wat
ch h
ow IR
Bs a
re u
sed
and
oper
ated
;c)
Out
com
es:
i)Im
prov
e tr
aini
ng;
ii)Ch
ange
aw
ards
stru
ctur
e to
rew
ard
safe
ty a
spec
ts o
f com
petit
ion;
iii)C
hang
e qu
alifi
catio
ns to
ope
rate
IRBs
– n
ew re
accr
edid
atio
n st
ruct
ure
with
es
tabl
ishm
ent o
f Cre
wpe
rson
’s Ce
rtifi
cate
;iv)
Chan
ges t
o ho
w ev
ents
are
run
with
mod
ified
rule
s – n
o m
odifi
ed cr
aft a
re to
be a
llow
ed;
v)M
ajor
chan
ges u
nder
way
to d
esig
n of
craf
t – n
ew tw
in h
ull c
raft
curre
ntly
bein
g de
signe
d.d)
The
outc
ome
of th
e re
view
has
bee
n to
avo
id th
e ris
k by
bann
ing
IRBs
for n
atio
nal
com
petit
ive
IRB
racin
g un
til a
ll st
ates
com
e up
to th
e ne
w st
anda
rds b
ut m
anag
ing
the
risk f
or re
scue
s as t
here
is cu
rren
tly n
o al
tern
ativ
e to
the
IRBs
. Thu
s, IR
Bs a
re st
ill
used
for o
pera
tions
;e)
All s
tate
bod
ies t
o re
port
det
ails
of a
ny in
jurie
s on
stan
dard
form
s for
cons
isten
t an
d ef
ficie
nt co
llect
ion
and
inpu
t of d
ata;
f)Ap
poin
t med
ia li
aiso
n pe
rson
and
use
of w
ebsit
e an
d m
ater
ials
to sh
ow
com
mun
ity th
at a
ctio
n is
bein
g ta
ken;
g)N
egot
iate
and
mai
ntai
n clo
se re
latio
nshi
p w
ith in
sure
r
CEO
Wor
kpla
ce In
jurie
s Man
agem
ent T
eam
and
Au
stra
lian
IRB
Revi
ew C
omm
ittee
CEO
As a
prio
rity
CEO
to W
orkp
lace
Inju
ries M
anag
emen
t Tea
mLo
cal b
ranc
hes t
o re
port
on
stan
dard
form
to C
EO o
f Sta
te b
ody
35
Meals on Wheels delivers pre-packed meals at home to the elderly andin some cases to the disabled. Deliveries are made by volunteers usingtheir own vehicles.
There are many associated risks, including those involving cars (accidents)and food preparation (cuts, burns, lifting strains). There is also the risk ofinjury to patrons if the food is not prepared, stored, transported and thenconsumed or stored appropriately. Food Standards Australia and NewZealand estimate that there are 7 million cases of food poisoning annuallyin Australia. The consequences of food poisoning for frail, elderly ordisabled patrons of Meals on Wheels could be very serious.
Risks also arise when the patron is not at home when the meal isactually delivered.1 If the meal is left outside the door, it could be tampered with by
animals or other people.2 Danger posed by heated granite plates left by drivers to keep food hot.
Heated granite plates are used in eskies to ensure food is delivered atcorrect temperature. Volunteers have protective holders to avoid burns.
3 It is not acceptable to leave food with neighbours without havingarranged this with the patron or vetted and instructed the neighboursbeforehand. Transfer of such a risk to neighbours without theirknowledge or consent is inappropriate. Entering a neighbour’spremises without permission has hazards, such as dog attacks.
4 Some patrons require special foods (for example, they are diabetic orallergic to certain foods). The normal risk management procedure isfor the deliverer to check with the patron that the correct food isbeing delivered. This cannot be done if the patron is not present.
Here is how one Meals on Wheels unit has begun to deal with thespecific issue of patrons not being present at the delivery of meals.
risk management tool for volunteer involving organisations
36
Case Study: 4Volunteer Food Delivery
Where patrons’welfare is at risk, therisk cannot be leftuntreated.
Risk
Reg
iste
rfu
nc
tio
n/a
ctiv
ity
co
mp
ile
d b
y
re
vie
we
d b
y
da
te
da
te
ris
k r
at
in
g
lik
elih
oo
d
ra
tin
g
co
ns
eq
ue
nc
e
ra
tin
ga
de
qu
ac
y o
f e
xist
in
g c
on
tr
ols
lik
elih
oo
d
Poss
ibili
ty o
f ani
mal
s or o
ther
hum
ans
tam
perin
g w
ith fo
od
If dr
iver
s lea
ve fo
od w
ith n
eigh
bour
s-f
ood
qual
ity n
ot a
ssur
ed-u
nacc
epta
ble
to tr
ansf
er ri
sk to
ne
ighb
ours
with
out t
heir
know
ledg
e or
cons
ent
Dang
er p
osed
by
heat
ed g
rani
te p
late
s lef
t by
driv
ers t
o ke
ep fo
od h
ot
If fo
od o
r rec
ipie
nts i
ncor
rect
ly n
amed
:-f
ood
was
ted
-cos
t inc
urre
d of
retu
rn a
nd re
plac
emen
t
-pos
sible
per
sona
l inj
ury
due
to p
atro
ns
cons
umin
g w
rong
food
, e.g
. tho
se w
ith
diab
etes
or a
llerg
ies
Brea
ch o
f leg
islat
ive
requ
irem
ents
for f
ood
safe
ty
Deat
h or
inju
ry
Imag
e of
bod
y
Inju
ry to
driv
ers a
nd
patr
ons
Body
cann
ot a
fford
was
te
of re
sour
ces
Deat
h or
inju
ry. V
olun
teer
s m
ay re
sign.
Gov
t fun
ding
m
ay b
e th
reat
ened
if fo
od
qual
ity n
ot m
aint
aine
d.
Pena
lty; lo
ss o
f pub
lic tr
ust
Hig
h
Low
/Med
ium
Low
Low
Med
ium
Low
Inad
equa
te –
fact
ors a
re o
ut o
f the
m
anag
er’s
cont
rol
As a
bove
Driv
ers n
ot a
ble
to a
dvise
pat
rons
on
how
to
hand
le p
late
s – m
ust r
ely
on p
ast p
ract
ices
and
writ
ten
mat
eria
ls gi
ven
prev
ious
ly
Cost
s to
retu
rn a
nd re
plac
e fo
od –
clie
nt
requ
ired
to p
ay fo
r foo
d if
they
do
not
notif
y in
eno
ugh
time
A gr
eat d
eal o
f car
e is
take
n by
pai
d an
d vo
lunt
eer s
taff
whe
n pa
ckin
g m
eals
in th
e la
belli
ng a
nd n
amin
g pr
oces
s
Very
det
aile
d pr
oces
ses a
re in
pla
ce a
nd
trai
ned
fullt
ime
staf
f but
man
y vo
lunt
eers
w
ho n
eed
to b
e ov
erse
en b
y st
aff t
o en
sure
co
mpl
ianc
e oc
curs
eve
ry ti
me.
Hig
h im
pact
Hig
h im
pact
Med
ium
im
pact
Low
Hig
h
Hig
h
Hig
h
Med
ium
/Low
Low
Low
Low
(wel
l m
anag
ed ri
sk)
Med
ium
Hig
h
Med
ium
Low
Low
Med
ium
Med
ium
Deliv
ery
of Fo
od to
the
Elde
rly a
nd D
isabl
ed w
hen
Patr
on a
bsen
t
co
ns
eq
ue
nc
es
co
ns
eq
ue
nc
es
of
an
ev
en
t h
ap
pe
nin
g
th
e r
is
ks
– w
ha
t c
an
ha
pp
en
an
d h
ow
37
Risk
Tre
atm
ent S
ched
ule
and
Plan
fu
nc
tio
n/a
ctiv
ity
co
mp
ile
d b
y
re
vie
we
d b
y
da
te
da
te
ho
w t
o m
on
ito
r
th
e r
is
k a
nd
th
e
tr
ea
tm
en
t o
pt
io
ns
tim
eta
ble
fo
r
imp
lem
en
ta
tio
n
pe
rs
on
resp
on
sib
le f
or
imp
lem
en
ta
tio
n
co
st/b
en
ef
it
an
aly
sis
re
su
lt
(a
cc
ep
t/r
eje
ct)
ris
k r
at
in
g
af
te
r
tr
ea
tm
en
t
tr
ea
tm
en
t
op
tio
ns
pr
ef
er
re
d o
pt
io
ns
ris
ks
in
pr
io
rit
y o
rd
er
(f
ro
m r
is
k r
eg
is
te
r)De
liver
y of
Food
to th
e El
derly
and
Disa
bled
whe
n Pa
tron
abs
ent
Poss
ibili
ty o
f ani
mal
s or
othe
r hum
ans t
ampe
ring
with
food
If dr
iver
s lea
ve fo
od w
ith
neig
hbou
rs-f
ood
qual
ity n
ot a
ssur
ed-u
nacc
epta
ble
to tr
ansf
er
risk t
o ne
ighb
ours
with
out
thei
r kno
wle
dge o
r con
sent
Dang
er p
osed
by
heat
ed
gran
ite p
late
s lef
t by
driv
ers t
o ke
ep fo
od h
ot
If fo
od o
r rec
ipie
nt
inco
rrec
tly n
amed
:-p
atro
n ca
nnot
corr
ect a
t tim
e of
del
iver
y, fo
od
was
ted,
cost
incu
rred
of
retu
rn a
nd re
plac
emen
t
- pat
ron
may
be h
arm
ed b
y co
nsum
ing
wro
ng fo
od
eg. t
hose
with
dia
bete
s or
alle
rgie
s
Cont
inue
pac
kagi
ng a
nd
deliv
erin
g fo
od –
risk
of
brea
ch o
f leg
islat
ive
requ
irem
ents
for f
ood
safe
ty
Avoi
d ris
k/M
anag
e ris
k
Avoi
d ris
k/M
anag
e ris
k
Avoi
d ris
k/M
anag
e ris
k
Avoi
d ris
k/M
anag
e ris
k
Avoi
d ris
k/M
anag
e ris
k
Man
age
risk
Avoi
d ris
k
Avoi
d ris
k – ce
ase
activ
ity
Use
oth
er co
ntai
ners
that
can
be u
sed
in th
e ab
senc
e of
volu
ntee
rs o
r col
d fo
ods
Man
age r
isk –
pat
ron
to co
llect
bef
ore o
r afte
r th
e des
igna
ted
time –
mus
t adv
ise th
e Cen
ter
if go
ing
to b
e aw
ay o
r clie
nt st
ill p
ays
Ensu
re d
eliv
ery
staf
f are
trai
ned
and
volu
ntee
rs in
the
kitc
hen
are
awar
e of
and
fo
llow
pro
cess
es
Ensu
re co
ntai
ners
com
ply
with
wor
kpla
ce
heal
th a
nd sa
fety
legi
slatio
n. E
nsur
e vo
lunt
eers
and
staf
f tra
ined
, pol
icies
in p
lace
an
d pr
oces
ses a
dapt
ed p
rom
ptly
to m
inim
ise
risks
Hig
h
Low
Low
Low
Reje
ct
Reje
ct
Acce
pt
Acce
pt
Acce
pt
Acce
pt
Man
ager
Man
ager
Man
ager
Man
ager
Man
ager
Man
ager
Imm
edia
tely
Imm
edia
tely
Imm
edia
tely
Imm
edia
tely
Imm
edia
tely
Imm
edia
tely
Man
ager
repo
rtin
g to
m
anag
emen
t com
mitt
ee
Man
ager
repo
rtin
g to
m
anag
emen
t com
mitt
ee
Man
ager
repo
rtin
g to
m
anag
emen
t com
mitt
ee
Man
ager
repo
rtin
g to
m
anag
emen
t com
mitt
ee
Man
ager
repo
rtin
g to
m
anag
emen
t com
mitt
ee
Man
ager
repo
rtin
g to
m
anag
emen
t com
mitt
ee
risk management tool for volunteer involving organisations
38
Risk
Act
ion
Plan
fu
nc
tio
n/a
ctiv
ity
pe
rs
on
re
sp
on
sib
le
re
vie
we
d b
y
da
te
da
te
ris
k
re
co
mm
en
de
d r
es
po
ns
e a
nd
im
pa
ct
re
so
ur
ce
re
qu
ir
em
en
ts
re
sp
on
sib
ilit
ie
s
tim
in
g
re
po
rt
in
g a
nd
mo
nito
rin
g r
eq
uir
ed
Deliv
ery
of Fo
od to
the
Elde
rly a
nd D
isabl
ed w
hen
Patr
on a
bsen
t
Food
qua
lity
cann
ot b
e as
sure
d w
hen
food
left
at p
rem
ises i
n th
e ab
senc
e of
pat
ron
Avoi
d th
e ris
k unl
ess s
atisf
acto
ry ri
sk m
anag
emen
t str
ateg
ies a
re in
pla
ce a
nd a
ccep
ted
by p
atro
ns
pr
op
os
ed
Ac
tio
ns
a)N
o m
eals
to b
e le
ft o
utsid
e th
e pa
tron
’s ho
me
if th
ey a
re n
ot a
t hom
e (e
ven
if an
esk
y is
prov
ided
); pa
tron
to p
ay if
no
one
is at
hom
e to
rece
ive
food
; all
unde
liver
ed fo
od to
be
retu
rned
to th
e ki
tche
n.b)
Mea
ls on
ly to
be l
eft w
ith n
eigh
bour
s by p
rior a
rrang
emen
t and
onl
y if n
eigh
bour
s kno
w
of a
nd h
ave
acce
pted
risk
s and
ther
e is
no re
ason
to su
spec
t tha
t the
nei
ghbo
ur is
un
relia
ble
– to
tran
sfer
risk
may
be
unet
hica
l pra
ctice
and
insu
ranc
e m
ay n
ot co
ver a
ny
brea
ch o
f dut
y in
thes
e cir
cum
stan
ces.
c)Pa
tron
s to
mak
e pr
ior a
rrang
emen
t for
colle
ctio
n of
mea
l fro
m th
e ki
tche
n of
the
asso
ciatio
n ea
rlier
in th
e da
y, or
afte
r nor
mal
del
iver
y tim
e.d)
Arra
nge
for t
he d
eliv
ery
of a
n ex
tra
mea
l on
the
day
befo
re (o
nly
if pr
evio
usly
neg
otia
ted
and
if pr
actic
able
e.g
. if fo
od sp
oila
ge is
not
an
issue
) but
ens
ure
the
patr
on p
lace
s the
m
eal i
n th
e fr
idge
/fre
ezer
and
reco
rd th
at th
is ha
s occ
urre
d.e)
Deliv
ery
volu
ntee
rs to
leav
e a
note
in p
atro
n’s a
bsen
ce co
nfirm
ing
the
mea
l is a
t the
ki
tche
n fo
r col
lect
ion.
Cho
ose l
imite
d ra
nge o
f mea
ls th
at a
re le
ss su
scep
tible
to ri
sk th
an a
fre
shly
cook
ed m
eal (
e.g. if
left
out o
f frid
ge) s
uch
as ch
eese
s and
bisc
uits
/pre
pack
aged
food
.f)
Ensu
re co
nsist
ent m
ento
ring
of d
river
s as t
o th
eir r
espo
nsib
ilitie
s by
indu
ctio
ns a
nd
stan
dard
s and
pro
per s
cree
ning
of b
ackg
roun
d of
driv
ers;
g)Cr
eate
cust
omise
d se
rvice
del
iver
y st
anda
rds,
but r
atio
nalis
e w
hen
rele
vant
stat
e or
na
tiona
l sta
ndar
ds o
n se
rvice
del
iver
y ar
e de
velo
ped.
cont
inue
d ne
xt p
age
Man
ager
Sub-
com
mitt
ee o
r man
agem
ent c
omm
ittee
a)Fo
od w
asta
ge to
be
min
imise
db)
Paid
staf
f to
assis
t driv
ers w
ith p
roce
ssc)
Man
agem
ent t
ime
to tr
ain
driv
ers a
nd st
aff
d)Cr
eatio
n of
writ
ten
mat
eria
l for
pat
rons
and
staf
f pro
mot
ing
the p
olici
es a
nd p
roce
dure
s
Man
ager
to o
vers
ee p
roce
sses
are
follo
wed
To b
e im
plem
ente
d im
med
iate
ly
a)M
anag
er to
repo
rt to
man
agem
ent c
omm
ittee
b)Su
b-co
mm
ittee
to b
e es
tabl
ished
to fo
cus o
n re
port
ing
of ri
sk in
ciden
ts a
nd ri
sk
man
agem
ent i
ssue
s and
to re
port
to th
e bo
ard
c)Ri
sk m
anag
emen
t day
39
risk management tool for volunteer involving organisations
40
Risk
Act
ion
Plan
cont
inue
dp
ro
po
se
d A
ct
io
ns
co
ntin
ue
d
h)In
duct
ions
and
form
al tr
aini
ng a
t reg
ular
tim
es. D
evel
opm
ent o
f con
siste
nt tr
aini
ng
mat
eria
ls an
d tr
aine
rs. E
nsur
e co
mpe
tenc
ies a
ppro
pria
tely
ass
esse
d af
ter t
rain
ing
wor
ksho
ps –
cert
ifica
tes g
iven
. Tra
inin
g an
d ch
ange
man
agem
ent o
ptio
ns:
-Onl
ine
asse
ssm
ent –
mul
tiple
choi
ce q
uest
ions
– d
one
at vo
lunt
eer’s
ow
n tim
e –
com
pute
r acc
ess a
t bod
y or
libr
ary
or st
ate
offic
es if
volu
ntee
r doe
s not
hav
e co
mpu
ter
acce
ss –
in 15
-min
ute
segm
ents
;-R
aise
aw
aren
ess a
nd g
et/b
uy in
from
staf
f – h
old
‘Food
qua
lity
and
serv
ice d
eliv
ery’
com
petit
ions
– co
mpe
te w
ith o
ther
are
a bo
dies
– g
ain
med
ia p
ublic
ity;
-Sim
ulat
ions
of b
est p
ract
ice –
stat
e bo
dy to
crea
te vi
deos
on
‘dos
’ and
‘don
’ts’;
-Sta
te b
ody
to p
ost b
est p
ract
ice g
uide
lines
in ch
eckl
ist fo
rmat
on
web
site
– ge
t up
cons
titue
nt m
odel
– m
embe
rshi
p of
stat
e bo
dy a
nd is
sues
with
hav
ing
to a
bide
with
na
tiona
l sta
ndar
ds –
rew
ards
for c
ompl
ianc
e –
reco
gniti
ons,
mor
e fu
ndin
g to
loca
l bo
dies
to re
ach
stat
e or
nat
iona
l sta
ndar
ds;
-Obt
ain
patr
on fe
edba
ck o
n w
hat i
s goo
d an
d ba
d –
syst
emat
ic co
llect
ion
of d
ata
– fe
edba
ck sh
eet w
ith e
ach
mea
l – to
be
colle
cted
at s
ubse
quen
t col
lect
ions
– ve
ry si
mpl
e fo
rms –
don
’t ju
st re
ly o
n an
ecdo
tal e
vide
nce
and
then
ada
pt sy
stem
and
pro
cess
es;
-Und
erta
ke re
gula
r spo
t aud
its o
n dr
iver
s com
plia
nce
with
gui
de li
nes;
-Driv
er si
gn o
ff an
d tic
k che
cklis
t tha
t all
proc
edur
es fo
llow
ed a
fter e
very
run.
Rec
ords
m
anag
emen
t to
colla
te a
nd a
ct o
n th
ese
shee
ts a
nd su
gges
tions
from
pat
rons
and
dr
iver
s to
impr
ove
the
syst
em.
A not-for-profit association (‘the Centre’) provides teaching and otherservices for hearing-impaired children and support for their parents.
Each year the Centre holds a Christmas party for the children enrolled.Parents, volunteers, staff, board members, and management are invited,and parents usually bring along others who have not been specificallyinvited. This year approximately 30 children, ranging in age from 2 to 6years, and 20 adults will be present. Father Christmas will arrive byprime mover, which is being provided by a sponsor and driven by asponsor’s employee.
The prime mover will be parked in the adjacent carpark outside the fencedplayground area of the Centre. The cabin is quite high off the ground andthe exhaust pipe will be very hot and near where children will climb ontothe machine. Parents will be asked to supervise but a staff member willalso be present, and the driver of the prime mover will remain in the cabinthroughout the activity. The carpark is near the roadway and trafficpresents a greater than usual risk for many hearing-impaired children.
There will be not be enough staff to monitor every aspect of the functionclosely. Children may be stressed by the heat and the unusually largecrowd. Children with hearing aids could also be at risk from the resultanthigh noise levels, which may be amplified by the hard surfaces insidethe building.
Some of the people attending, although well meaning, may behaveinappropriately and in ways that could unsettle the children and parents.In addition, staff supervising children may be distracted by parents whowant in-depth discussions of their children’s progress. Parents can becomeemotional and distressed during interviews and privacy and confidentialitycannot be assured at the event.
Clearly, various aspects of the event present risks, although they are allof low likelihood. However, if problems do arise, they could have a majorimpact on the Centre.
41A once-a-year event,outside theorganisations usualroutines, can presentnew risks that needto be specificallymanaged.
Case Study: 5The Annual Christmas Party
Risk
Reg
iste
rfu
nc
tio
n/a
ctiv
ity
co
mp
ile
d b
y
re
vie
we
d b
y
da
te
da
te
ris
k r
at
in
g
lik
elih
oo
d
ra
tin
g
co
ns
eq
ue
nc
e
ra
tin
ga
de
qu
ac
y o
f e
xist
in
g c
on
tr
ols
lik
elih
oo
d
Child
ren’
s Chr
istm
as P
arty
Child
ren
clim
bing
ont
o he
avy m
achi
nery
and
pr
oxim
ity to
road
caus
ing
phys
ical i
njur
y
Staf
f at r
isk fr
om h
eavy
mac
hine
ry
Child
ren
mad
e sic
k by
eatin
g in
appr
opria
te
food
(e.g
. hea
vily
spice
d). P
aren
ts a
nd st
aff
upse
t.
Inap
prop
riate
beh
avio
ur o
f vol
unte
ers/
visit
ors
Pare
nts w
ishin
g to
disc
uss i
ssue
s with
staf
f at
the
even
t
Phys
ical i
njur
y
Phys
ical i
njur
y
Phys
ical i
njur
y
Brea
ch o
f priv
acy
Brea
ch o
f priv
acy
Low
Low
Low
Med
ium
Med
ium
Suffi
cient
mon
itorin
g bu
t cle
ar st
eps t
o m
anag
e ris
ks sh
ould
be
artic
ulat
ed
inclu
ding
frea
k acc
iden
ts.
Staf
f not
spec
ifica
lly a
war
e of
risk
s fro
m
mac
hine
ry b
efor
e th
e da
y of
the
even
t.
Staf
f allo
cate
d bu
t bec
ause
of n
umbe
r of
pare
nts a
nd ch
ildre
n clo
se m
onito
ring
not
feas
ible
.
Staf
f inf
orm
ed o
f pol
icy, C
entr
e ne
eds t
o en
sure
par
ents
und
erst
and
reas
ons b
ehin
d po
licy.
Pare
nts c
onta
cted
bef
oreh
and
abou
t the
ev
ent b
ut n
ot in
form
ed sp
ecia
lly a
bout
this
issue
.
Med
ium
/Hig
h
Low
Med
ium
Med
ium
/Hig
h
Med
ium
/Low
Med
ium
Low
Low
Med
ium
Med
ium
/Hig
h
Med
ium
Low
Low
Med
ium
Med
ium
co
ns
eq
ue
nc
es
co
ns
eq
ue
nc
es
of
an
ev
en
t h
ap
pe
nin
g
th
e r
is
ks
– w
ha
t c
an
ha
pp
en
an
d h
ow
risk management tool for volunteer involving organisations
42
Risk
Tre
atm
ent S
ched
ule
and
Plan
fu
nc
tio
n/a
ctiv
ity
co
mp
ile
d b
y
re
vie
we
d b
y
da
te
da
te
ho
w t
o m
on
ito
r
th
e r
is
k a
nd
th
e
tr
ea
tm
en
t o
pt
io
ns
tim
eta
ble
fo
r
imp
lem
en
ta
tio
n
pe
rs
on
resp
on
sib
le f
or
imp
lem
en
ta
tio
n
co
st/b
en
ef
it
an
aly
sis
re
su
lt
(a
cc
ep
t/r
eje
ct)
ris
k r
at
in
g
af
te
r
tr
ea
tm
en
t
tr
ea
tm
en
t
op
tio
ns
pr
ef
er
re
d o
pt
io
ns
ris
ks
in
pr
io
rit
y o
rd
er
(f
ro
m r
is
k r
eg
is
te
r)Ch
ildre
n’s C
hrist
mas
Par
ty
Inju
ry ca
used
by:
-chi
ldre
n cli
mbi
ng o
nto
heav
y m
achi
nery
-hea
ring
impa
ired
child
ren
runn
ing
onto
th
e ro
ad
Allo
win
g no
n-pa
rent
s to
atte
nd a
t par
ty –
in
appr
opria
te b
ehav
iour
of
som
e vol
unte
ers/
visit
ors o
n th
e da
y
Pare
nts w
ishin
g to
disc
uss
issue
s at t
he e
vent
Staf
f inj
ured
whi
le h
elpi
ng
child
ren
to cl
imb
onto
truc
k
Child
ren
mad
e sic
k by
eatin
g in
appr
opria
te fo
od
(eg.
hea
vily
spice
d).
Pare
nts a
nd st
aff u
pset
Avoi
d or
man
age
risk
Avoi
d or
man
age
risk
Man
age
risk
Avoi
d, m
anag
e or
tran
sfer
risk
Man
age
risk
No
heav
y m
achi
nery
, or c
lose
mon
itorin
g by
st
aff, p
aren
ts a
nd sp
onso
r. Che
ck m
achi
nery
fo
r dan
gero
us p
arts
bef
ore
and
afte
r it a
rriv
es
By m
akin
g cle
ar ex
pect
atio
ns a
nd sc
reen
ing
all a
tten
dees
and
by
staf
f bei
ng a
war
e of
be
havi
ours
By m
akin
g cle
ar ex
pect
atio
ns o
f par
ents
and
re
ason
s beh
ind
Cent
re p
olicy
All s
taff
brie
fed
on re
spon
sibili
ties t
o ot
hers
on
the
day.
Cons
ider
mor
e gu
idan
ce o
n st
aff
safe
ty. C
heck
insu
ranc
e co
ver a
nd le
gisla
tive
com
plia
nce.
Staf
f mem
bers
and
par
ents
to b
e al
loca
ted
resp
onsib
ility
to e
nsur
e ap
prop
riate
food
go
es to
child
ren
and
pare
nts
Med
ium
/Low
Low
Med
ium
/Hig
h
Low
Low
Acce
pt
Acce
pt
Reje
ct
Acce
pt
Acce
pt
Seni
or st
aff
mem
ber a
nd
spon
sor
Seni
or
man
agem
ent
Seni
or
man
agem
ent
Seni
or
man
agem
ent
Staf
f mem
ber
and
pare
nt
Befo
re n
ext
Chris
tmas
pa
rty
As a
bove
As a
bove
As a
bove
As a
bove
Subm
it pl
an to
Sub-
com
mitt
ee li
stin
g al
l tas
ks,
atte
ndan
t risk
s and
how
th
ey w
ill b
e ad
dres
sed.
Item
for r
isk p
lann
ing
day.
Seni
or m
anag
emen
t to
close
ly m
onito
r inf
orm
atio
n gi
ven
to p
aren
ts a
nd o
ther
s.Ite
m fo
r risk
pla
nnin
g da
y.
As a
bove
Subm
it pl
an to
Sub-
com
mitt
ee li
stin
g al
l tas
ks,
atte
ndan
t risk
s and
how
th
ey w
ill b
e ad
dres
sed.
Item
for r
isk p
lann
ing
day.
As a
bove
43
Risk
Act
ion
Plan
fu
nc
tio
n/a
ctiv
ity
pe
rs
on
re
sp
on
sib
le
re
vie
we
d b
y
da
te
da
te
ris
k
re
co
mm
en
de
d r
es
po
ns
e a
nd
im
pa
ct
re
so
ur
ce
re
qu
ir
em
en
ts
Child
ren’
s Chr
istm
as P
arty
Phys
ical s
afet
y and
com
fort
of c
hild
ren,
espe
cially
child
ren
with
hea
ring
aids
, may
be a
t risk
be
caus
e of
ove
rcro
wdi
ng o
f ven
ue a
nd in
crea
sed
noise
leve
ls an
d so
met
imes
misg
uide
d ac
tions
of g
uest
s.
pr
op
os
ed
Ac
tio
ns
-Sen
d in
vita
tions
to in
vite
es a
nd st
ate
that
any
oth
er p
erso
ns w
ho w
ish to
att
end
mus
t fir
st se
ek p
erm
issio
n of
the
Cent
re a
nd b
e re
cord
ed in
the
Cent
re’s
reco
rds.
Clea
r gui
delin
es
for i
nvite
es sh
ould
be
stat
ed in
the
invi
tatio
n.-P
ut d
iscla
imer
on
invi
tatio
n th
at a
ll pa
rent
s mus
t tak
e re
spon
sibili
ty to
mon
itor t
heir
child
ren
and
wha
t the
y ea
t at t
he p
arty
.-I
f hea
vy m
achi
nery
will
be a
t the
Cen
tre,
requ
ire a
cons
ent f
orm
to b
e sig
ned
by a
ll pa
rent
s be
fore
thei
r chi
ldre
n ar
e al
low
ed to
go
on th
e m
achi
nery
, sta
ting
that
the
pare
nts w
ill
acco
mpa
ny th
em a
nd e
nsur
e th
at a
staf
f mem
ber w
ill b
e pr
esen
t at a
ll tim
es. If
the
mac
hine
ry h
as p
arts
that
pos
e an
una
ccep
tabl
e ris
k, th
en d
o no
t util
ise h
eavy
mac
hine
ry
in fu
ture
. On
the
invi
tatio
n in
sert
a d
iscla
imer
as t
o ne
glig
ence
as f
ar a
s per
mitt
ed b
y la
w.
-Con
firm
in w
ritin
g th
e sh
arin
g of
liab
ility
of t
he C
entr
e an
d th
e sp
onso
r who
supp
lied
the
mac
hine
ry a
nd th
e dr
iver
, reg
ardi
ng li
abili
ty a
nd in
sura
nce
cove
r sho
uld
any
inju
ry
be o
ccas
ione
d to
any
child
or s
taff
mem
ber o
r the
driv
er fr
om th
e ch
ildre
n cli
mbi
ng
onto
or i
nto
the
mac
hine
.-C
onsid
er a
ltern
ate
venu
es if
noi
se le
vels
are
unco
mfo
rtab
ly h
igh
or th
e he
at is
un
com
fort
able
for t
he ch
ildre
n.-A
ppoi
nt st
aff m
embe
r to
be re
spon
sible
for a
ppro
pria
tene
ss o
f foo
d (e
g. n
o ho
t spi
cy fo
od
on p
late
s for
the
very
you
ng) a
nd g
ener
al a
ctiv
ities
in th
e ki
tche
n (to
ens
ure
safe
ty in
the
kitc
hen
area
).
Seni
or m
anag
erCo
rpor
ate
Gove
rnan
ce a
nd R
isk M
anag
emen
t Su
b-Co
mm
ittee
a)en
sure
staf
f are
all
in a
tten
danc
e an
d w
ell b
riefe
d on
are
as o
f risk
and
stra
tegi
es
and
role
s of s
taff
to m
onito
r and
min
imise
risk
. It m
ay w
ell b
e un
real
istic
and
inap
prop
riate
to a
ttem
pt to
tran
sfer
risk
to p
aren
ts to
mon
itor c
hild
ren
effe
ctiv
ely.
b)pa
rkin
g at
tend
ants
to a
ssist
with
par
king
of c
ars i
n th
e vi
cinity
of t
he e
vent
. W
hen
child
ren
go o
utsid
e fo
r act
iviti
es, s
taff
and
pare
nts t
o en
sure
thei
r saf
ety
at a
ll tim
es b
y no
t allo
win
g an
y pa
rkin
g of
cars
in th
e ca
rpar
k and
the
loca
tion
of th
e pr
ime
mov
er.
c)en
sure
that
exte
rnal
supp
liers
(e.g
. an
ente
rtai
ner o
r the
spon
sor)
are
invo
lved
in
the
plan
ning
pro
cess
and
are
aw
are
of th
eir r
espo
nsib
ilitie
s on
the
day.
cont
inue
d ne
xt p
age
Avoi
d th
e ris
k –
do n
ot h
ave
heav
y m
achi
nery
at t
he p
arty
– lo
w im
pact
; avo
id h
avin
g th
e pa
rty
insid
e at
the
Cent
re w
here
the
surfa
ces i
ncre
ase
the
leve
l of n
oise
and
mov
e to
the
outs
ide
area
or t
o an
othe
r ven
ue –
low
impa
ct.
Man
age
the
risk
– in
trod
uce
stra
tegi
es to
min
imise
risk
to ch
ildre
n’s c
omfo
rt a
nd h
earin
g w
hilst
man
agin
g vo
lunt
eers
’ exp
ecta
tions
, str
ateg
ies t
o cla
rify
supp
ort r
equi
red
of p
aren
ts
and
expe
ctat
ions
of s
taff
at th
e ev
ent –
low
impa
ct.
Tran
sfer
the r
isk –
ensu
re in
sura
nce c
over
is a
dequ
ate
to co
ver a
ny p
hysic
al in
jurie
s; co
nsid
er
shar
ing
or tr
ansfe
rring
risk
whe
n ap
prop
riate
for i
njur
y occ
asio
ned
by th
e hea
vy m
achi
nery
. M
ay n
ot b
e app
ropr
iate
and
thus
, con
sider
if ri
sk is
una
ccep
tabl
y hig
h, to
avo
id th
e risk
and
no
t hav
e he
avy
mac
hine
ry a
t the
par
ty –
hig
h im
pact
if n
o co
ver.
risk management tool for volunteer involving organisations
44
Risk
Act
ion
Plan
cont
inue
dr
es
po
ns
ib
ilit
ie
s
tim
in
g
re
po
rt
in
g a
nd
mo
nito
rin
g r
eq
uir
ed
a)pr
epar
e an
d cir
cula
te a
n ag
enda
whi
ch st
ates
the
orde
r of a
ctiv
ities
at t
he p
arty
and
to
min
imize
the
perio
d of
tim
e du
ring
whi
ch th
e ch
ildre
n m
ay cl
imb
onto
the
mac
hine
.b)
wai
t suf
ficie
nt ti
me
betw
een
whe
n th
e m
achi
ne a
rriv
es a
nd w
hen
the
child
ren
clim
b on
boa
rd a
nd e
nsur
e th
e m
achi
ne is
insp
ecte
d bo
th b
efor
e th
e m
achi
ne a
rriv
es a
t the
pa
rty
but a
lso a
fterw
ard,
and
that
ther
e ar
e no
expo
sed
or d
ange
rous
par
ts.
a)at
the
end
of th
e ev
ent,
cond
uct a
‘deb
rief’
of th
e ac
tiviti
es o
n th
e da
y an
d be
fra
nk a
nd
cons
truc
tive
in d
raw
ing
out i
ssue
s tha
t sho
uld
be a
ddre
ssed
. Hav
e th
e ch
air o
r ano
ther
m
embe
r of t
he b
oard
cond
uct t
he d
ebrie
f.b)
annu
al ri
sk p
lann
ing
day,
risk a
sses
smen
t sho
uld
be u
nder
take
n of
all
maj
or e
vent
s and
op
erat
ions
– in
volv
e al
l key
stak
ehol
ders
and
be
facil
itate
d by
a ri
sk m
anag
emen
t exp
ert
if po
ssib
le.
c)th
e pe
rson
/s re
spon
sible
for t
he e
vent
to su
bmit
a pl
an p
rior t
o th
e ev
ent t
o th
e Co
rpor
ate
Gove
rnan
ce a
nd R
isk M
anag
emen
t Sub
-Com
mitt
ee o
utlin
ing
all a
ctiv
ities
, ke
y ris
ks a
nd h
ow th
ose
risks
are
to b
e m
anag
ed –
the
Sub-
Com
mitt
ee to
repo
rt o
n an
y un
usua
l or h
igh
risks
to th
e bo
ard,
shou
ld th
e ne
ed a
rise
and
tabl
e pl
an fo
r the
ben
efit
of a
ll bo
ard
mem
bers
.
45
Risk
Reg
iste
r
co
ns
eq
ue
nc
es
fu
nc
tio
n/a
ctiv
ity
co
mp
ile
d b
y
re
vie
we
d b
y
da
te
da
te
ris
k r
at
in
g
lik
elih
oo
d
ra
tin
g
co
ns
eq
ue
nc
e
ra
tin
ga
de
qu
ac
y o
f e
xist
in
g c
on
tr
ols
lik
elih
oo
d
co
ns
eq
ue
nc
es
of
an
ev
en
t h
ap
pe
nin
g
th
e r
is
ks
– w
ha
t c
an
ha
pp
en
an
d h
ow
Risk
Tre
atm
ent S
ched
ule
and
Plan
fu
nc
tio
n/a
ctiv
ity
co
mp
ile
d b
y
re
vie
we
d b
y
da
te
da
te
ho
w t
o m
on
ito
r
th
e r
is
k a
nd
th
e
tr
ea
tm
en
t o
pt
io
ns
tim
eta
ble
fo
r
imp
lem
en
ta
tio
n
pe
rs
on
resp
on
sib
le f
or
imp
lem
en
ta
tio
n
co
st/b
en
ef
it
an
aly
sis
re
su
lt
(a
cc
ep
t/r
eje
ct)
ris
k r
at
in
g
af
te
r
tr
ea
tm
en
t
tr
ea
tm
en
t
op
tio
ns
pr
ef
er
re
d o
pt
io
ns
ris
ks
in
pr
io
rit
y o
rd
er
(f
ro
m r
is
k r
eg
is
te
r)
Risk
Act
ion
Plan
fu
nc
tio
n/a
ctiv
ity
pe
rs
on
re
sp
on
sib
le
re
vie
we
d b
y
da
te
da
te
ris
k
re
co
mm
en
de
d r
es
po
ns
e a
nd
im
pa
ct
re
so
ur
ce
re
qu
ir
em
en
ts
re
sp
on
sib
ilit
ie
s
tim
in
g
re
po
rt
in
g a
nd
mo
nito
rin
g r
eq
uir
ed
pr
op
os
ed
Ac
tio
ns
GlossaryAvoidanceA method of lowering risk exposure bynot doing the risky activity.
ConsequenceThe outcome of an event expressed asa figure (10%), bringing a loss, injury,disadvantage or gain. There may be arange of possible outcomes associatedwith an event.
DefamationGenerally a defamatory statement maybe described as one which exposes thedefamed person to hatred, contempt,ridicule, or which tends to lower theaggrieved person in the estimation ofother people or which injures him orher in their profession or calling orwhich causes him or her to be shunnedor avoided.
DefendantIndividual or organisation againstwhom a legal action has been brought.In a civil action the defendant may becalled the respondent.
Evaluation of riskThe term for estimating level of risk and/or for setting priorities on the ways inwhich future risk can be managed.
IndemnifyA promise to reimburse another for aloss suffered.
InsuranceA contract whereby an organisationagrees to indemnify another and to paya specified amount upon determinablecontingencies in exchange for a premium(price paid). An example of risk transfer.
Legal compliance planA legal compliance plan manages theorganisation’s, individual boardmember’s and management’s exposureto breaching the law. A compliance plandiffers from a risk management plan inthat the system is designed to completelyeliminate breaches of the law. Measuresto prevent a breach occurring cannotbe compromised on the basis of cost.
LiabilityAny enforceable legal obligation.
LikelihoodThe term used as a qualitativedescription of probability or frequencyof an event/risk happening.
NegligenceFalling below the duty of care owed toanother resulting in their injury. Forexample, failure to keep visitors to youroffices safe from harm by tripping overunsafe floor coverings or giving incorrectadvice to clients who suffer injurythrough reliance on such information.The duty of care of an individual or anorganisation is decided by the Courtsand involves taking reasonable carenot to cause harm to other persons.
OfficerIndividual who has a managementposition within an organisation.Depending on the context it may includeboard or committee members andsenior managers (paid or volunteer).
PlaintiffAn individual or organisation thatinitiates a lawsuit to obtain a remedyfor an injury.
ProbabilityThe likelihood of a specific event oroutcome, measured as the ratio ofspecific events or outcomes to the totalnumber of possible events or outcomes.
RiskRisk is a measure of the possibility thatthe future may be different from whatis expected.
Risk managementThe strategic planning process ofmanaging an organisation’s potentialexposure to liabilities, by preventing orminimising them, and/or by providingfor funds to meet the liability if it occurs.The process has 4 steps: identify risks;evaluate risks; design a managementprogram; and implement and reviewthe program.
TortThe area of law dealing with civil, asopposed to criminal, wrongs, arisingoutside the field of contract. For example,the type of legal action an elderly citizenwould bring against the driver of a carthat ran them down on a well-litpedestrian crossing.
Vicarious liabilityLiability imposed on a person ororganisation for the acts, defaults oromissions of persons serving on itsbehalf. Vicarious liability can be imposedeven if the individual or organisation isnot directly involved. The liability of oneparty is imposed on another.
VolunteeringAn activity that takes place in not-for-profit organisations or projects and isundertaken to be: of benefit to thecommunity and the volunteer; of thevolunteer’s own free will and withoutcoercion; for no financial payment; andin designated volunteer positions only.
developed for volunteering australia by
for more information on how to obtain the national standards for involving volunteers in not-for-profit organisations
or the national standards implementation guide for not-for-profit organisations involving volunteers visit our web site
at www.volunteeringaustralia.org or telephone 03 9820 4100.
professional advice and support by
State and Territory Volunteering Centre Contacts
Volunteering ACTCommunity ChambersCorner Chandler Street and Cameron AvenueBelconnen ACT 2617t 02 6251 4060f 02 6251 4161e [email protected]
Volunteering NSWLevel 2, 228 Pitt StreetSydney NSW 2000t 02 9261 3600f 02 9261 4033e [email protected]
Volunteering QLDLevel 6, 333 Adelaide StreetBrisbane QLD 4000t 07 3229 9700f 07 3229 2392e [email protected]
Volunteering SA1st Floor, Torrens Building220 Victoria SquareAdelaide SA 5000t 08 8221 7177f 08 8221 7188e [email protected]
Volunteering AustraliaSuite 2, Level 311 Queens RoadMelbourne 3004t 03 9820 4100t 03 9820 1206e [email protected]
Volunteering Tasmania57D Brisbane StreetHobart TAS 7000t 03 6231 5550f 03 6234 4113e [email protected]
Volunteering Victoria7th Floor, 388 Bourke StreetMelbourne VIC 3000 t 03 9642 5266f 03 9642 5277e [email protected]
Volunteering WA2 Delhi StreetWest Perth WA 6000t 08 9420 7288f 08 9420 7289e [email protected]
Volunteering Australia Darwin OfficeLevel 4, Darwin Central21 Knuckey StreetDarwin NT 0800t 08 8981 3910f 08 8981 2955