Risk management is an essential function of the elected executive committee. National sport organisations (NSOs) must focus attention on risk management if they want to improve their effectiveness and efficiency. One of the key elements to operating and managing a national sport organisation effectively is an understanding of the operating environment as there are a number of issues that impact negatively or positively how NSOs operate.
To better administrate and manage their sport. NSOs must be able to come to terms with issues that present a risk to the effective governance and management of their sport.
Effective governance and management is about leadership, accountability and good systems of control. NSOs that follow the principles of good organisational governance increase their chances of meeting the needs of their key stakeholders in an efficient and effective manner. The process of risk management, the identification of potential risks, the assessment and the management of risk is integral to good governance of an NSO.
To identify risks—understanding and being aware of its operating environment is essential if an NSO is to properly evaluate the risks of both its external and internal environment. The effective governance and management of national sport organisations (NSOs) demands that sport organisation be organised in a manner that it can operate effectively. There are key operational principles on which a national sport organisation should be structured. Taking risks helps an NSO grow.
Issues and factors in the operating element present opportunities and challenges. To be most effective in delivering services to stakeholders, the operating environment influences the management of NSOs.
Key factors include political factors, sociocultural factors, economic factors and legal factors. The value government places on sport impacts the economic context for sport.
Jean Camy and Leigh Robinson in their book Managing Olympic Sport Organisations argued that in order to improve effectiveness NSOs must address political factors and should ask themselves questions such as:
• What importance does the government place on sport?
• Are senior politicians committed to sport?
• What is the relationship between NSOs and government?
• Do politicians value the work of NSOs?
• How do the objectives of NSOs contribute to government objectives for sport?
• How do NSOs respond to changing government objectives?
• How important are NSOs to sport in T&T?
• How does the way that sport is structured in T&T affect the delivery of sport? What should improve this?
• Is the policy of physical education in schools supportive of participation?
• Do people value sport in T&T
• Do parents value the participation of children in sport?
• How is sport funded in T&T?
• What do you have to do to get funds?
• Can you increase your funds or have them taken away?
• What do you have to do to prove that your organisation is effective?
• Where do NSOs fit into the sport infrastructure?
Just as is the case with political factors Economic factors have an impact on NSOS.
Economic factors include the strength of the economy, unemployment levels, can people afford to be volunteers. Inflation rate, level of disposable income and cost of living all determine how much money people can afford to spend on sport.
Competition also has an economic impact. NSOs compete for money left over after basic needs are met. Competition for resources isn’t only for money, but includes people. The importance government places on sport will have a significant economic impact because many NSOs depend on government funding.
There are certain risks that are common to most NSOs and a lack of awareness and understanding of the operating environment and the factors that determine the environment and could bring about risks puts an NSO at a disadvantageous position. Taking the process of risk management seriously will certainly prove beneficial to NSOs and improve their effectiveness and efficiency.
Brian Lewis is the president of the Trinidad and Tobago Olympic Committee. Visit www.ttoc.org for more information on Olympism, the Olympic Games and the TTOC.