Managers of sports clubs and facilities are required to undertake a complex range of duties to ensure the effective running of the facility. A critical part of the these duties involves managing risk. To successfully complete a risk analysis report a sports clubs or facility manager needs to understand the key aspects of running sports facilities and events as well as the factors that impact on operations. A critical part of risk analysis is analysing how well sports facilities and events are performing.
In Weeks 7–9 you will explore key issues, risks and challenges managers face in the areas of marketing sponsorship, fundraising, law, governance and athlete management. The purpose of this assignment is to provide you with an opportunity to demonstrate what you have learned in these areas in a format commonly used by sports facilities and clubs.
Related learning outcomes
This assignment assesses the following unit learning outcomes:
1. Identify the key aspects of running sports facilities and event.
4. Demonstrate a range of factors necessary to operate sports facilities and run sports events.
5. Analyse management performance of sports facilities and events.
Overview of Manly Pool
The chosen sports club is Manly Pool, which is located in Brisbane, Queensland. This swimming facility is located on the foreshore, adjacent to Marina and was first developed as a relaxation resort for the tourists. However, it has now been turned into a swimming training facility in which people from various ages are trained in various swimming courses. It is a privately controlled facility that makes earnings from the payments made by the people who join various swimming courses in this facility.
In this report, the sports facility will be analyzed and the risks associated with the organization will be analyzed and discussed. Furthermore, suitable risk mitigation plan will also be developed.
This facility was mainly developed as a relaxation resort for tourists but now, it has been redeveloped into swimming training facility as well. In this facility, there is a wading pool with play features for the kids and a 25 meter outdoor pool with ramp and waterslide. This pool is used for the training purposes and there are mainly four different types of training taught here:
- Aqua
- Masters
- Swimfit
- Mini/Junior Squad
Now, Manly Pool wants to implement a new strategic plan in which the target to attract more youths of the country to take part in the swimming lessons. The strategic plan also includes upgradation and heating of the swimming pool and as also there are plans for further expansion once sufficient profits are earned from the swimming training programs. The company also looks to recruit highly skilled human resources and reduce the staff turnover that is a significant problem from quite some time.
There are several risks that may occur while implementing the new strategic plan for Manly Pool. These risks must be analyzed and mitigated without delay in order to prevent any negative impact on the business of the organization. Some of the major risks associated with the strategic plan of manly pool are discussed in detail below in the form of a risk analysis matrix.
The risk analysis matrix is developed as follows.
|
Risk Name |
Likelihood |
Severity |
Risk Rating |
Mitigation Strategies |
|
High Employee Turnover Rate |
Almost Certain |
Major |
Extreme |
Pay sufficient wages to the employees along with flexible work hours and other benefits (Yeh et al. 2014) |
|
No Expansion Space for the Pool |
Likely |
Moderate |
High |
Purchase adjacent land areas to expand the overall facility |
|
Chance of Illness of the Swimmers due to Old Heating and Filtration System |
Almost Certain |
Major |
Extreme |
The old systems must be repaired and upgraded for better efficiency |
|
Hike in Price of Oil Needed for Heating the Pool |
Possible |
Moderate |
Medium |
Use electric heating system to avoid oil costs (Liguori et al. 2014) |
|
High Costs of Implementation |
Almost Certain |
Major |
Extreme |
Procure a suitable sponsor who will fund for the project |
|
Lack of Medical Collaboration |
Likely |
Severe |
Extreme |
Set up medical aid centre at the facility and recruit first aid providers and doctors who will provide medical support in emergency cases (Marcelino-Sádaba et al. 2014) |
|
Market Competition |
Almost Certain |
Major |
Extreme |
Upgrade the facility from time to time and provide special training packages at discounted prices to attract more customers and survive market competition (Hopkinson 2017) |
|
Legal Risks |
Unlikely |
Severe |
Medium |
Ensure all expansion and operations places are as per the legal rules and guidelines and gain license from the local council before proceeding with the project |
|
Social Risks Regarding Purchase of Adjacent Land Properties |
Possible |
Minor |
Medium |
Go through detailed legal process and provide sufficient compensation for purchase of the adjacent land that will be used for expansion of the facility (Cagliano, Grimaldi and Rafele 2015) |
|
Lack of Interest from the Youth |
Unlikely |
Moderate |
Medium |
Advertise the benefits of swimming on health among the youth so that they become interested in swimming and join the facility for training |
Based on the risk analysis matrix, the risks are defined and discussed in detail as follows.
|
Risk Category |
Risk Name |
Definition and Discussion |
|
Internal |
High Employee Turnover Rate |
Employee turnover rate is defined by the number of employees who leave these existing posts in the organization due to a variety of reasons like resignation, termination, transfer and others (Harris 2017). Turnover rate increases with the increase in the number of employees leaving the organization. Currently, the employee turnover rate at Manly Pool is extremely high. |
|
Technical |
No Expansion Space for the Pool |
As evident from the analysis of the facility and the new strategic plan, it has been found that there is not sufficient space inside the facility for the expansion purpose (Bowers and Khorakian 2014). Thus, if the expansion is not possible at all, the new strategic plan will not feasible and the expected benefits cannot be earned. |
|
Chance of Illness of the Swimmers due to Old Heating and Filtration System |
The heating and filtration system are old and not functional properly and hence, the water in the pools contain harmful chemicals and germs. As a result, there is a high chance of the swimmers to get sick while swimming (Zhao, Hwang and Phng 2014). The children are more prone to this sickness as they are more affected by the harmful germs and chemicals. |
|
|
External |
Hike in Price of Oil Needed for Heating the Pool |
Oil is used to run the heating machines that are used to heat the water in the pool (Pritchard and PMP 2014). However, with considerable increase in the price of oil in the international market, the company may not able to cope with the expenses for heating of the pool. |
|
Financial |
High Costs of Implementation |
The entire project plan involves a large number of activities including expansion, technical upgradation, recruitment of skilled staffs, new medical facility and others (Kerzner and Kerzner 2017). All these activities will incur a huge amount of cost that the company cannot afford unless there is a suitable sponsor who will provide funds for the project work. |
|
Medical |
Lack of Medical Collaboration |
Sufficient medical collaboration is not available at the moment and hence in case of emergencies, the affected people need to be transported to a distant hospital that involves a lot of time and manpower. |
|
Market |
Market Competition |
Several new swimming resorts and training sessions are rapidly growing up in the nearby areas and hence, the market competition is constantly increasing for Manly Pool (Carvalho and Rabechini Junior 2015). Thus there is a risk of losing business if the company cannot continue to attract more people to join. |
|
Legal |
Legal Risks |
Legal risks appear when the project is not aligned with legal standards and guidelines associated with that specific area of business or there is not sufficient license for the company to undertake the project and continue the business after the project (Bowers and Khorakian 2014). This is caused when there is not proper awareness regarding the laws associated with the business and hence, it can incur hazardous consequences like project shutdown, legal action, monetary penalties, imprisonment and others. |
|
Social |
Social Risks Regarding Purchase of Adjacent Land Properties |
Due to land ownership by various people in the adjacent areas, the company may not able to acquire and purchase the required amount of land area. Thus, it will not be possible to expand the facility further as per the project plan. |
|
Lack of Interest from the Youth |
The purpose of this project is to attract more young people of the country to come forward and take part in the swimming training lessons that will not only help them become more sporting but also gain fitness significantly (Hopkinson 2017). However, it is possible that most of the youth may not be interested in swimming at all and many of them will only come to the facility for relaxation purposes. This will significantly hamper the business of the company. |
The risk mitigation strategies are explained below in the following table.
|
Risk Category |
Risk Name |
Mitigation Strategies |
|
Internal |
High Employee Turnover Rate |
The only way to reduce the high employee turnover rate is to enhance the employee satisfaction. This can be achieved by hiking the employee salaries (within a reasonable range), providing benefits like holidays, promoting employee team refreshment activities during the off days, developing flexible work hours and others (Liu, Meng and Fellows 2015). |
|
Technical |
No Expansion Space for the Pool |
The current facility will not support any expansion as there is not any extra space available. Thus, it is advisable for the company to purchase adjacent land areas in order to expand further and deploy more and bigger swimming pools for competitive swimming. |
|
Chance of Illness of the Swimmers due to Old Heating and Filtration System |
The first recommended action is to repair the heating and filtration systems for short term fix. However, this is not a permanent solution as there will be frequent maintenance and repair works necessary (Sadgrove 2016). Hence, it is recommended to purchase new technically updated heating and filtration systems that will require high costs of implementation but lesser maintenance costs. Moreover, these new systems will be much more efficient than the current old systems. |
|
|
External |
Hike in Price of Oil Needed for Heating the Pool |
Oil powered heaters are expensive in nature and also produce pollution. Hence, it is recommended for the company to purchase new electric powered heaters that are highly efficient, cheaper and does not create any kind of pollution. Moreover, electric power is already available at the facility and hence, the company will not have to spend extra for fuel. |
|
Financial |
High Costs of Implementation |
It is evident from the analysis of the project plan that the company will not be to afford the high costs required for the new proposed strategic project (Espinoza 2014). Hence, it is recommended for the company to find a sponsor who will provide sufficient funding for the project. The sponsor funding can be requested on phase to phase basis depending on the expenses encountered by the company. |
|
Medical |
Lack of Medical Collaboration |
It is recommended to set up a medical aid room within the facility. In this room, several immediate aid volunteers can be recruited who will be trained to assist in providing first aid to the people falling sick or facing accident within the swimming pools. |
|
Market |
Market Competition |
It is important for the company to be competitive in the market to avoid the rival organizations that are growing up at fast rates (Wu, Chen and Olson 2014). In order to achieve the competitiveness, the company should be technically updated, there should be skilled trainers and the course rates should be cheap compared to the rates in the rival organizations. |
|
Legal |
Legal Risks |
It is advised for the company to apply for swimming training license before proceeding with the project. Furthermore, the company should hire legal personnel for supervising the legal aspects of the project. |
|
Social |
Social Risks Regarding Purchase of Adjacent Land Properties |
The land purchase process should be done through appropriate legal streamlines and the benefits of expansion of the swimming facility must be made known to the owners of the land that will be purchased (Tomanek and Juricek 2015). |
|
Lack of Interest from the Youth |
Advertisements using social media, digital media, leaflets and hoardings can be undertaken in order to attract more youth of the country to join the swimming training and activities. Referral system can be introduced in which the existing trainees will be able to refer their friends for joining the training sessions. |
Conclusion
Finally, it can be concluded that the proposed strategic project for Manly Pool has a large number of risks that can threaten to stop the project in its tracks. Hence, it is important to address all the risks before the project can be initiated. In this report, a number of risks associated with the project have been highlighted including internal, external, technical, legal, financial, social and others. All of these risks have been discussed in detail and it has been found that most of these risks can cause disastrous outcomes for the project. Hence, in order to avoid these risks, suitable mitigation measures have been suggested and discussed in detail. These recommended mitigation solutions will be able to stop the impacts of the risks but at the same time, these mitigation measures also require suitable strategic plan for implementation.
References
Bowers, J. and Khorakian, A., 2014. Integrating risk management in the innovation project. European Journal of innovation management, 17(1), pp.25-40.
Cagliano, A.C., Grimaldi, S. and Rafele, C., 2015. Choosing project risk management techniques. A theoretical framework. Journal of Risk Research, 18(2), pp.232-248.
Carvalho, M.M.D. and Rabechini Junior, R., 2015. Impact of risk management on project performance: the importance of soft skills. International Journal of Production Research, 53(2), pp.321-340.
Espinoza, R.D., 2014. Separating project risk from the time value of money: A step toward integration of risk management and valuation of infrastructure investments. International Journal of Project Management, 32(6), pp.1056-1072.
Harris, E., 2017. Strategic project risk appraisal and management. Routledge.
Hopkinson, M., 2017. The project risk maturity model: Measuring and improving risk management capability. Routledge.
Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.
Liguori, G., Capelli, G., Carraro, E., Di Rosa, E., Fabiani, L., Leoni, E., Marensi, L., Napoli, C., Pasquarella, C., Spica, V.R. and Canossa, C., 2014. A new checklist for swimming pools evaluation: A pilot study. Microchemical Journal, 112, pp.181-185.
Liu, J., Meng, F. and Fellows, R., 2015. An exploratory study of understanding project risk management from the perspective of national culture. International Journal of Project Management, 33(3), pp.564-575.
Marcelino-Sádaba, S., Pérez-Ezcurdia, A., Lazcano, A.M.E. and Villanueva, P., 2014. Project risk management methodology for small firms. International journal of project management, 32(2), pp.327-340.
Pritchard, C.L. and PMP, P.R., 2014. Risk management: concepts and guidance. Auerbach Publications.
Sadgrove, K., 2016. The complete guide to business risk management. Routledge.
Tomanek, M. and Juricek, J., 2015. Project risk management model based on PRINCE2 and SCRUM frameworks. arXiv preprint arXiv:1502.03595.
Wu, D.D., Chen, S.H. and Olson, D.L., 2014. Business intelligence in risk management: Some recent progresses. Information Sciences, 256, pp.1-7.
Yeh, R.Y., Farre, M.J., Stalter, D., Tang, J.Y., Molendijk, J. and Escher, B.I., 2014. Bioanalytical and chemical evaluation of disinfection by-products in swimming pool water. water research, 59, pp.172-184.
Zhao, X., Hwang, B.G. and Phng, W., 2014. Construction project risk management in Singapore: resources, effectiveness, impact, and understanding. KSCE Journal of Civil Engineering, 18(1), pp.27-36.
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