Risk Management Through Effective Risk

Risk Management Through effective risk management potential and existing risks may be identified" (Cotton & Wolohan, 2003, p. 78). Sport constitutes one of the top ten industries in the United States (U.S.), Doyice Cotton and John T. Wolohan (2003) asserts. As a result of the prominent status of sport, the need exists for effective risk management by managers of athletic facilities. The organization needs to create an environment with minimal inherent risks within activities and services without generating any change in the activity itself.

Risk management does not attempt to eliminate each and every risk, Cotton and Wolohan (2003) stress, but instead serves as "a management strategy to maintain greater control over the legal uncertainty that may 'wreak havoc on a sport business'" (p. 268). In Chapter 5 of the book, Law for Recreation and Sport Managers, Cotton and Wolohan (2003) introduce the recreation or sport manager to the basics components of the risk management process.

According to Cotton and Wolohan risk management may be defined as "controlling the financial and personal injury losses from sudden, unforeseen, unusual accidents and intentional torts" (Ibid.). Risk management has also been noted to include the way to manage financial and human resources wisely, while making sound decisions. As a risk or loss may be physical or financial in its nature, risk managers need to routinely seek for ways to reduce the risks that potentially injure patrons, consequently decreasing potential lawsuits.

In addition to potential lawsuits, albeit, risk managers need to effectively counter potential and actual risks related to financial losses. These may accompany acts of vandalism, poorly written contacts, as well as damaged and/or stolen equipment. Accidents in the facility's parking lot that occur due to poor lighting constitute more reasons for effective risk management. An additional concern relating to the strength of the facility's bleachers is reflected in the newspaper headline "Overloaded Bleacher Collapse Killing One and Injuring Over 200." As noted as this research segment's start, identifying.