The three components of the Risk Management Process are Recognition, Analysis and Action. Recognition involves "thinking about both the general categories of hazards to address and the specific hazards within those categories" (Spengler 50). In this step management is concerned with recognizing areas of risk and deciding whether it is cost effective to implement a risk management program. Ethical considerations must be taken into account as well as financial considerations. Analysis involves identifying risks and evaluating those risks. Management must identify risks based on common sense and industry standards of care. The degree of severity for those risks must be analyzed so that decisions can be made to mitigate the risk. Action involves deciding whether to act on the perceived risk and what type of action is appropriate. The four options are retention, treatment, transfer and avoidance.
An example of the process:
You are the head of a youth football league. You recognize that there is an inherent risk of physical trauma during full contact football. You realize that head trauma is a big risk and that it has the potential to have severe consequences. You decide to treat the risk by requiring all players to use the latest design of helmet by Riddell.
Sport Law related article: http://sports.espn.go.com/nfl/news/story?id=6243983
"The NFL asked a federal judge Monday to keep its lockout in place, saying there are no legal grounds to stop it while accusing the players of trying to manipulate the law with a bogus antitrust lawsuit."
The posturing continues as the two sides fight for the public's and law's favor.
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