Managing risk in non-profit, sport, and recreation organisations – latest handbooks available now
8 September 2010
Standards New Zealand and Standards Australia have just published two new risk handbooks – SAA/SNZ HB 266:2010 facilitates the effective management of risk in independent not-for-profit (NFP), non-profit, and non-government organisations, and SAA/SNZ HB 246:2010 has been written for application across the whole spectrum of sport and recreation, including related activities conducted within education institutions at all levels and government agencies at all levels.
SAA/SNZ HB 266:2010 Guide for managing risk in not-for-profit organizations
This handbook accurately paraphrases AS/NZS ISO 31000:2009 Risk management – Principles and guidelines and provides substantial additional context and tools that will help NFP organisations apply AS/NZS ISO 31000.
The NFP sector has a wide and diverse range of stakeholders and it contributes an estimated 4 to 5% to gross domestic product in New Zealand and Australia. The sector encompasses community services, legal advocacy, charities, and philanthropic, international aid, and church organisations. They serve, variously, 'clients', 'customers', 'beneficiaries', and 'members'.
According to Roger Estall, a New Zealand member of the joint Australia/New Zealand development committee OB-007, consultation on HB 266:2010 across the sector was wide, well-endorsed, and welcomed. 'This handbook will help NFPs find and implement new and even more effective ways to support their organisation's stakeholders. It's a fact that supporting such worthy causes involves taking risk, sometimes not being successful, and learning from an organisation's successes, failures, and near misses. This book will help those judgments with greater confidence.'
Jeanette Ward, one of the principal authors who worked closely with the NFP sector says, 'what matters most is not what happens in the face of uncertainty, but rather how well the organisation deals with a change in circumstances, the unthinkable or the unforeseen, both bad and good. HB 266 will assist NFPs manage the risks they face with more confidence.'
Florence Trout, Advisor Quality & Risk Management for Plunket Society, says 'NFP organisations typically have to pursue their objectives against a background of considerable uncertainty and thus risk. To have available a document that provides practical advice for managing risk, especially in a way that conforms with national and international best practice, should help NFP organisations to achieve their business and community goals. We, at Plunket, welcome this new Guide, HB 266 – and all NFPs should benefit from its principles, explanations, and tools.'
Tony Duncan, Executive Director of Heart Foundation New Zealand says 'handbook, HB 266, has successfully explained how to apply the international Standard for risk management to not-for-profit organisations in a clear and very readable way. Passion and the cause may be an NFP organisation's pulse but they may not always protect it from unwise decisions, mismanagement, or human fallibility. The very practical advice including the 15 excellent templates in this handbook will go a long way towards helping NFPs to do so and thereby better achieve their objectives.'
HB 266 proposes the use of a gap analysis to help integrate risk management into other processes, and also has a useful section on recording the risk management process and developing risk registers. A helpful and detailed case study on 'SAVE Community Services', recommended reading list, and 15 widely applicable templates have been included, covering:
- Gap analysis protocol
- Stakeholder analysis
- External influences analysis
- Internal influences analysis
- Risk management policy statement
- Consequence ratings and criteria
- Ratings and criteria
- Control effectiveness ratings and criteria
- Risk matrix
- Risk treatment priority ratings and criteria
- Key elements
- Risk treatment response options analysis
- Risk treatment plan
- Risk register
- Risk profile
SAA/SNZ HB 246:2010 Guidelines for managing risk in sport and recreation organizations
The sport and recreation sector is both diverse and distinctive – it includes sporting and recreational organisations (indoor, outdoor, and horse racing), commercial operators (venues, events, and coaching) and has strong links to local government. It plays an important part in enhancing the lives and well-being of many New Zealanders.
HB 246:2010 recognises the sector's dependence on volunteers. It does not deal explicitly with adventure tourism but would generally be helpful to this sector as well. This handbook was also developed with wide consultation across the sector.
The handbook explains how to apply AS/NZS ISO 31000:2009 Risk management – Principles and guidelines and provides additional context, diagrams, examples, and tools that will help sport and recreation organisations to do so. It has a 'running' case-study of an angling club wanting to hold a fishing contest downstream of a chemical plant – this is used to illustrate each step of the risk assessment process and selection of risk treatments.
Roger Estall says, 'HB 246:2010 also has a very useful section on involvement of volunteers in risk management activity, a list of risk assessment techniques with explanatory material and examples, and helpful annexes dealing with regulatory considerations in Australia and New Zealand, good governance, and interface with local government. The case study advocates risk registers should be headed by the relevant context statement on which the risk assessment is based. That way, if the context changes, the organisation is reminded to update the risk assessment.'
Dennis Goodwin, principal author of the handbook says, 'the Sport and Recreation sector in New Zealand makes a huge contribution to the well-being of New Zealanders and a significant contribution to the economy and reputation of New Zealand too. The success of all these organisations ultimately depends on them managing risk effectively in order to achieve their various objectives. HB 246:2010 has been developed after extensive consultation with the sector to help all forms of sporting and recreational organisations to achieve their important goals.'
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