Best Governance and Risk Management

July 29, 2018

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This article is an extract from our Good Governance Booklet.  If you need legal advice in this area, or would like to purchase a copy of our booklet or attend one of our seminars on this topic, please email or call our Melbourne office on (03) 9642 0435.

Why implement risk management or good governance practices?

  • Reduces the chance of legal action against the association;
  • Leads to more appropriate handling of many delicate issues and the sport functions a lot more smoothly, great harmony
  • Reduces the risk of personal liability of directors/executive.

Does the Board carry insurance?

  • Public liability or property damage;
  • Director’s Insurance

There is no magic to risk management – common sense and thinking ahead are key

Areas of importance:

  • Financial affairs;
  • Two common law duties: Care and diligence; and the duty of loyalty and good faith;
  • Ensure that the Association meets all requirements in law;
  • Good demarcation of roles between the board and CEO/Administration;
  • Sound Constitution;
  • General Advice;
  • Strategic Plan and Regular Reviews

For further reading on best governance practice Paul recommends: “Australian Sports Commission: Sports Governance Principles found on the following link: