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 info@sportslawyer.com.au 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:

https://www.ausport.gov.au/supporting/governance/governance_principles