Social
From grassroots to elite arenas, the sports industry will face vast opportunities and challenges in the coming years. A recent global sports survey by PwC revealed the average industry growth is projected to slow from 8.0% to 3.3% over the next 3-5 years, with Australia expected to fare only slightly better. With limited financial resources because of slowing growth, operational efficiency and effective risk management have never been more critical for sporting bodies, associations, and clubs – their future depends on it. Chris Papakostas outlines the top risks sporting bodies face and the actions that can be taken to help limit them
If you sit on the board of a sporting body, it is critical to understand your personal liability around obligations and decisions made and the associated risks. For example, if safety issues have been raised, but not addressed, a future related incident will expose directors and senior management. Ensuring your insurance is truly fit-for-purpose is key to mitigating financial loss if a personal liability risk materialises.
No sector is immune to the threat of cyber attacks. As sporting codes modernise through the use of technology, clubs and bodies are collecting more information about their members, including highly sensitive health and medical information. With limited budgets and resources, sporting organisations often lack the systems and support required to protect this information. Whilst the cost of losing this data is material, the reputational consequences can also be dire.
Cyber insurance plays a significant role in the event of an incident, but cyber risk management principles also need to be embedded within your organisation. You can find out how in our simple guide.
Sporting bodies can proactively educate administrators and members about associated responsibilities and implement simple, clear policies to meet relevant State legislation such as having current Working with Children permits.
As an extension of abuse exposure, there are insurance considerations involved for organisations that take part in the National Redress Scheme. Organisations must understand their risk exposures to ensure their cover is adequate and risks can be proactively managed, wherever possible.
We are seeing a rise in the total claim cost, particularly for Public Liability and Personal Accident claims. Personal Accident cost increases are occurring for out-of-pocket medical expenses, and Public Liability costs are increasing for the defence of claims (such as legal fees, court fees, and specialist consulting fees). We encourage sports clubs to take a preventative approach by revisiting and enhancing their safety policies and procedures.
It is common for portable technology such as laptops, tablets, phones, biometric and data-tracking devices, and timing devices to be taken to and from different locations by sporting organisations. This means organisations must ensure their policies cover the removal of such hardware from stored locations.
Read our Sport Capability Statement to find out more about the risks sporting bodies, associations, and clubs face and how we can help you address them.
Service Executive
chris.papakostas@honan.com.au
