Risk Management Midterm

What is risk management?

The process of decision-making and implementation used to minimize injuries and losses and their effects on an organization, facility, or event.

What are the three components of risk management?

Risk Assessment, Risk Control, and Risk Financing.

What is risk assessment?

Identifying and analyzing the risks or loss exposures involved with a program or organization.

What is risk control?

Selecting the techniques most appropriate for the circumstance and implementing them.

What is risk financing?

Being prepared to financially handle losses or lawsuits by retaining the risk, transferring the risk, or using a combination of both.

What should a future place of employment be?

A place in the fields of sport, health, or recreation.

Why should you select a future place of employment?

To focus your thoughts and energy on how risk management can impact you and your future career.

How will the future place of employment be used?

It will be used for assignments throughout the term and should not be changed once selected.

What are the three types of law?

Legislated law, regulatory law, and common law.

What is legislated law?

Law passed by federal, state, or local legislatures.

What is regulatory law?

Law passed by regulatory agencies.

What is common law?

Law created by the precedence of courts through past findings and rulings.

What is civil law?

Law involving disputes between citizens where the defendant may be required to pay damages.

What standard of evidence is used in civil court?

Preponderance of the evidence.

Where do most lawsuits involving sport and health organizations fall?

Civil court.

What is criminal law?

Law involving offenses brought by the state against an individual.

Who brings a criminal case?

The state.

What can happen to a defendant in criminal court?

Can be sentenced to jail, fined, and/or receive other penalties.

What standard of proof is used in criminal court?

Beyond a reasonable doubt.

What are the three sources of legal liability?

Contracts, statutes, and torts.

How can liability arise from a contract?

A person or organization can be liable if they breach the contract.

What are statutes?

State and federal laws.

What are examples of statutes?

Workers' compensation laws, Title IX, and the Americans with Disabilities Act (ADA).

What is a tort?

A wrongful act or omission.

Why are torts important in sport and health risk management?

They are one of the most important sources of legal liability in sport and health risk management.

What is negligence?

The failure to exercise the standard of care that a reasonably prudent person would have exercised in a similar situation.

Is negligence intentional?

No

What type of law is negligence part of?

Tort law/civil law.

What level of government handles negligence?

State level.

What are the four elements of negligence?

Duty, breach of standard of care, proximate cause, and damage.

What is duty?

A responsibility, obligation, or relationship to the injured party.

What can create a duty?

Employment, the situation, or a relationship such as family.

What is respondeat superior?

The employer is responsible for the employee.

Can the law create a duty where none exists?

No.

What is breach of the standard of care?

Failing to do what a normal, prudent person would do in the same or similar circumstances.

What is standard of care?

The watchfulness, attention, caution, and prudence that a reasonable person would exercise in the circumstances.

What are three ways to determine standard of care?

Industry standards, laws or regulations, and certifications or licenses.

What is an industry standard?

What should be done according to an established professional association or industry.

What is an example of a law or regulation affecting standard of care?

A Health Department requirement.

What is an example of a certification relevant to standard of care?

CPR certification.

What are the two types of breaches?

Omission and commission.

What is omission?

When someone should have done something but failed to do it.

What is commission?

When someone does something they are supposed to do but does it incorrectly.

What is proximate cause?

The connection between the breach and the damage that shows the breach caused the damage.

What is foreseeability?

The quality of being reasonably anticipatable.

What is causation?

The relationship between the breach of the standard of care and the injury, damage, or loss.

What does necessary mean in causation?

The injury would not have happened if the action had not happened.

What does sufficient mean in causation?

The action was significant enough to create the injury.

What must occur for negligence to exist?

There must be injury, damage, or loss.

What is ordinary negligence?

What an ordinary, prudent person would or would not do in the same or similar circumstances.

What is gross negligence?

What a reckless person would or would not do in the same or similar circumstances.

What is willful and wanton negligence?

Doing something on purpose or with complete disregard for another person.

What is comparative or contributory negligence?

The amount each party contributed to the negligence is considered when determining the settlement.

How is fault compared in comparative negligence?

The defendant's contribution to the injury is compared with the plaintiff's contribution.

According to the notes, how much does the defendant usually pay in comparative negligence?

The percentage of the injury for which the defendant is responsible.

What happens if the injured party is more than 50% at fault in most states?

They cannot collect anything.

What is a statute of limitations?

The period of time within which an injured party must file a lawsuit after realizing they are injured.

Does the statute of limitations vary?

Yes, it varies from state to state.

When does a minor's statute of limitations begin according to the notes?

When the minor reaches the age of majority.

What is a waiver?

A contract between the activity provider and participant in which the participant relinquishes the right to sue the provider for negligence that may result in injury.

What is assumption of risk?

When a participant assumes the risks that are inherent in or part of an activity.

What are the three elements of assumption of risk?

The participant must understand the risks, appreciate how significant the risks may be, and participate voluntarily.

What might a participant sign to acknowledge assumption of risk?

A warning, assumption-of-risk form, waiver, or combination of these.

How can professionals prevent negligence?

Learn and follow the appropriate standard of care.

How can someone become qualified to meet the standard of care?

Become certified, qualified, and/or licensed.

What are examples of professional development?

Attend conferences, attend training sessions, read professional literature, and complete courses, workshops, or in-service training.

Why is supervision important?

It is a critical element in many lawsuits.

What are the three types of supervision?

General, specific, and transitional.

What is general supervision?

Overseeing the activity and all participants.

What is specific supervision?

One-on-one, direct involvement with a participant.

What is transitional supervision?

Moving from general supervision to specific supervision or from specific supervision to general supervision, usually resulting in a few moments without supervision.

What factors should be considered when properly conducting an activity?

Adequacy of progression, maturity and condition of participants, psychological condition, physical condition, mental condition, safety equipment, and environmental conditions.

What are examples of psychological conditions?

Fear and other emotional factors.

What are examples of physical conditions?

Being tired, hungry, thirsty, or injured.

What should be considered regarding a participant's mental condition?

Whether they understand the activity.

What does an injury trigger?

The insurance claims process.

What should be the first steps after an injury?

Provide medical care and complete an incident report.

What information should be included in an incident report?

Name, DOB/age, parent/guardian if a minor, address/phone, health insurance coverage, date/time, location, description of what occurred, individual status, description of injury, medical care, police/medical intervention, and witnesses/contact information.

How should incident reports be stored?

In a secure filing cabinet or database.

Why might an incident report be needed later?

It may be requested as part of an insurance claim.

How long should an incident report be kept?

For the duration of the state's statute of limitations.

What is a waiver?

A contract between the provider of an activity and the participant in which the participant relinquishes the right to sue the provider for negligence that may result in injury.

What are common elements of a waiver?

A clear title, statement relinquishing the right to sue for negligence, warning of dangers, signature, and list of who cannot sue or who is protected.

What must participants understand about a waiver?

They must realize what they are signing.

What conditions should be provided when signing a waiver?

Participants should have enough time to read it and it should be easy to read.

What is indemnity?

Exemption from legal liability for one's actions.

According to the notes, what does indemnity make the participant responsible for?

All costs incurred by the injury.

What are ancillary clauses?

Components or issues that a provider may want included within the contract.

How should ancillary clauses be handled?

They should have separate signatures.

What is a code of ethics?

A guide of principles designed to help professionals conduct business honestly and with integrity.

What can a code of ethics outline?

The mission and values of an organization, how professionals should approach problems, ethical principles, and professional standards.

What are other areas a code of ethics may encompass?

Business ethics, professional practice, and employee code of conduct.

What are the key purposes of a code of ethics?

To establish ethical guidelines and best practices involving honesty, integrity, and professionalism.

What can happen if an organization's code of ethics is violated?

Sanctions, including termination, can occur.

What is the difference between a code of ethics and a code of conduct?

A code of ethics is aspirational, while a code of conduct is directional.

What does a code of ethics contain?

Core ethical values, principles, and ideals.

What does a code of conduct contain?

Specific practices and behaviors that are expected or restricted.

What is risk assessment?

Identifying and analyzing loss exposures.

What is a loss exposure?

An exposure that could undermine an organization's goals.

What are the four categories of loss exposure?

Property, liability, personnel, and net income.