RISK MANAGEMENT

RISK MANAGEMENT REPORT

REPORT
You have asked for my advice on how to manage the company’s legal risks
going forward.

EXECUTIVE SUMMARY
My advice for the company is that it needs to implement several safety majors
and responsibilities to manage its legal risk in order not to be sued or the
company is appropriately insured against risks and the costs to the company are
minimized .Moreover, my advice is that :- 1. We must do ride inspection and
regular maintenance, 2. We must train and employ qualified workers, 3. We
should operate the ride and rider safety, 4. We should purchase new machines
and equipment in replaced of old defective ones, 5. Emergency procedure must
be taken.
 BACKGROUND FACTS
Dream land is the biggest theme park and zoo located on Gold coast in
Queensland, Australia with over 40 rides and attraction, established in 15
December 1981. On 25 October 2016, a malfunction of the Thunder River Rapids
Ride resulted in the deaths of 4 people. This is regarded as the worst accident at
an Australia theme park since 1979 Sydney Ghost Train fire at Luna Park Sydney.
Keeping all this things in mind, CEO should take different majors and also
purchased new equipment and machines and keep good maintenance of them in
order to prevent from happening any risks during the ride or other events. CEO
should train the team and make them well informed to take the responsibility for
the theme park rights and attraction are important in safeguarding both visitors
and staffs.

THE COMPANY’S LEGAL OBLIGATIONS TO CLIENTS

(CONTRACT LAW)
The company legal obligation to the clients is a contract by which a company of
services agrees to provide the service to a client in exchange for a payment .When
the company engaged to do work for a client, it enters a contract with the clients.
The  guarantee of due care and skill which is in the Australian Consumer Law. The
guarantee is inserted by law into every contract for the supply of services. It
covers services provided by everyone in the tourism industry, from theme parks
to hotels and resorts to tour operators to airlines and transport providers. The
terms of the condition includes: - 1. Website terms and conditions. 2. Entry
tickets conditions. 3. in time of entrance.

There are also the terms implied by the Australian Consumer law including,

1. Australian consumer law sec 60(service with due care and skill.
2. Products should not be productivity.
THE COMPANY’S LEGAL OBLIGATIONS TO THE
CLIENTS (NEGLIGENCE)
The park has a legal obligation to take ‘reasonable care ‘ for the safety of
park entrants because the parks owes a ‘duty of care ‘ to all entrants .The
park must be at least as careful as a ‘ reasonable person ‘(s 5B Civil Liability
Act 2002(NSW)). This raises the question of whether a ‘reasonable person’
would:
 Train staff on emergency procedures.
 Use qualified engineers to regularly check equipment.

INSURANCE

Insurance is expensive, and insurers will require the company to take

precautions to prevent the risk of being sued for breach of contact or
negligence .It means that we cannot ignore the need for appropriate
skills and buying the perfect tools and equipments and so on in terms
of insurance. Both of them should be involved.
 COVID 19 SAFETY PLAN
In current situation CEO must consider the health and safety
for their employees and visitors. Following measures should be
taken:-
 The need for social distancing, work shifts of the
employees and encourage the workers to stay at the
home if they are ill .
 Provide visitors and workers with tissues, trash and face
mask compulsory.
 Post hand washing signs in restroom.
 Provide hand sanitization to the visitors and workers at
main entrance.

MY RECOMMENDATION
My recommendations are:-

 There must be daily checks due to which decreases the

possibility of occurring incident.
 Riders safety must be taken while running the machines, it’s
crucial that members of public are safe guarded, which means
being strict who can enjoy the ride.
 Operating the ride that includes everything from loading
passenger correctly, ensuring it is correctly balanced and make
sure that feature are working perfectly.
 Emergency procedure must be provided to the visitors and
also recommended that they are able to access their health
and safety.
 The company should employ the qualified staffs and provide
appropriate trainings.

BIBLIOGRAPHY
 Civil Liability Act 2002 (NSW)
 Australian Consumer Law
 Newspapers report
 https://www.abc.net.au/news/2020-09-29/fine-for-dreamworld-owners-
small-compared-to-other-penalties/12711848
 https://www.ausleisure.com.au/news/dreamworld-tragedy-
highlights-legal-duty-of-care-for-theme-park-guests/
 Sample report.