The D.I.M.

Process

The D.I.M. process was developed as a tool to establish an effective risk management program. When
used

as an anticipatory technique rather than as a reactionary procedure, the D.I.M. process will assist
organizations in decreasing the chance of litigation. his process involves three basic components: (1)
Developing risk management plan; (2) Implementing the risk management plan; and (3) Managing the
risk management.

Every organization, no matter the size, should have a current risk management plan. Each plan,
however, should be specifically developed for that provider. Every organization will have risks specific to
that business. For example, due to the specific risks, a risk management plan that works for a football
facility will not be the same as one used to baseball venue. However, components used in creating this
plan will be similar no matter what type of organization. Thus, managers at golf courses, aquatic centers,
ski areas, skateboard parks, or park and recreation departments will utilize the same basic principles.

Developing the Risk Management Plan

Developing a risk management plan consists of three separate stages: (1) identifying the risks, (2)
classifying

the risks, and (3) selecting methods of treatment for the risks.

Identification Stage

The identification stage is one of the key aspects of developing a successful risk management program. If
the recreation or sport manager wants to control risks in the program, he or she just first identify those
risks. Risks are present in all sport and recreation facilities and events including privately or municipally
owned buildings, professional or intercollegiate entertainment facilities, and outdoor or indoor
recreational settings. Each event or activity is different and has its own unique risks or areas of potential
loss. Identifying these risks, therefore, needs to be specific, constant, and ongoing.

An effective step to identify risk is to create categories of risk and then to list risks within each category.
There are several approaches that can be used to categorize risk. van der Smissen (1990) categorized
risks as (1) public liability caused by negligence in progam services,

(2) public liability [excluding negligence], (3) business operations, and (4) property exposures.

Recreation and sport managers often focus on bodily injuries resulting from public liability caused by
negligence. Injuries may include depth, quadriplegia or other paralysis, brain damage, loss of limbs, loss
of senses, injury to internal organs, strains, sprains, fractures, ligament damage, cuts, punctures, and
abrasions. This type of risk typically relates to the activities or a service offered by an organization and
often occurs when a member of the organization is negligent in performing his or her duties. However, if
risk identification is limited to only those bodily injuries, many financial risks to an organization will be
overlooked Risks grouped under public liability (excluding negligence) include such areas as malpractice
by personals, product liability, intentional torts, employment practices, sexual harassment, and civil
liberty violations.
Recreational and sport managers should note that the management of risk relating to employment law
issues is becoming great concern to many in the recreational and sport industries (Curtis, 2002).
Individuals involved in the human resource operations of an organization must be aware that risks lurk
within their purview as well. Typical cases in this category might relate to sexual harassment,
discrimination, equal pay disputes, and wrongful termination claims. Tools that can be used to identify
risks include questionnaires and discussions and interaction with employees relating to employment
practices. Also, it is helpful to rea the literature.

Property exposures a e financial risks related to the ownership of real and personal property. Loss may
occur as a result of fire, natural elements li e lightning and floods, vandalism, and theft. Recreation and
sport managers should rely on the help of various professional in identifying potential risks related to
property exposures. For example, an insurance agent should be contacted to insure that the
organization has adequate property insurance. The 2011 s ring floods along the Missouri River forced
the Sioux City Io , YMCA to relocate cross the river to a art of the Tyson Arena. Having flood insurance
enabled the YMCA to move back into their original facility once the waters subsided. In addition, good
agent can also help in identifying other risks.

Recreation and sport managers can also be exposed to risks via their organization s business operations.
These risks are financial risks that result from business interruption, embezzlement and theft, the
medical condition of employees, the health of key personnel, and employee accidents and injuries. To
identify risks associated with business operations, a recreation or sport manager should examine the
organizations operational

Policies and procedures to determine if the policies and procedures e pose the organization to loss.
Also, the manager can observe his or her employees at work to identify any activities that may lead to
sickness, accidents, or disability.

Classification Stage

Once the potential risks have been identified, the second stage in developing the plan is to classify the
risk. The purpose of the classification stage is to determine how often (frequency) the risk may occur
and the degree (severity) of the potential loss arising f om the risk. Once the various risks have been
identified, the risk manager takes each of the identified risks and evaluates them in terms of frequency
and severity he frequency of the risk is dependent on the number of time the risk or loss is likely to
occur. The risk manage ill vie each identified risk and assign frequency of high, medium,” o “low.” he
severity of the risk is determined by the intensity of the potential injury and/or the degree of the threat
to the financial stability of the organization. It is classified as “catastrophic,” critical,” "moderate,” or W
he level of severity and the frequency are determined by the risk manager, based on his/her expertise
derived from experience and training.