• KARM LEVEL 2

    KARM LEVEL 2

  • RESTRICTED ACCESS:

    KARM Level 2 is only accessible to clubs who meet all of the following criteria:

    1. Your club has completed the KARM Level 1 Accreditation
    2. Your club has received the KARM Level 1 Accreditation confirmation email.
    3. Your club has received the KARM Level 2 Welcome email (including registration code)

    If your club meets the above criteria, please enter your registration code below and complete your KARM Level 2 Accreditation.

     

    If your club does not yet meet the above criteria, please return to the KARM Starting Grid to complete your KARM Level 1 Accreditation.

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  • KARM LEVEL 2

    KARM LEVEL 2

  • Authorised Club Representative
    As per the KARM Web Site User Agreement, only Authorised Club Representives may complete a KARM Accreditation.

  • KARM LEVEL 2

    KARM LEVEL 2

  • To achieve Level 2, your club will be required to complete the following tasks:

    Task 1: Complete the short quiz

    Task 2: Review the risk identification checklist templates

    Task 3: Complete the KARM Commitment Statement

     

  • KARM LEVEL 2

    TASK 1: QUIZ
    KARM LEVEL 2

  • Before we begin...

    This task requires you to successfully complete a quick quiz to confirm your understanding of important aspects relating to risk management. 

    The quiz does not try to trick you or scare you but help you to recognise the benefits of managing risk within your club.

    To help you achieve 100% in the quiz, please read through the summaries below.  As you answer each question, additional information will appear to enhance your level of understanding.

    A copy of this information will be available to your club via the KARM Resource Library.

     

     

  • RISKY QUIZ!

    Please answer each question below to the best of your knowledge.  

     

    As you answer each question, additional information will be provided.

    If you answer incorrectly, you can change your answers at any time.

    You must score 100% before you can proceed to Task 2.

    All questions are compulsory.

    • QUESTION 1: RISK 

    • Risk can be described as a chance of something happening that will have an impact upon your club's objectives.

      There is a certain level of risk in everything that we do, whether it be crossing the road, driving a car, performing our occupation or playing, coaching and administering sport.

      Risks are not necessarily harmful; they can lead to benefits or they can lead to losses.  Each risk should be assessed individually to establish whether a positive or negative outcome is likely to occur.

    • CORRECT!

    •   Please try again.

    • Remember...

      Risk can be described as a chance of something happening that will have an impact upon your club's objectives.

      When your club runs an activity that has some level of 'uncertainty', then this activity is exposed to some level of risk.

      Throughout KARM Level 2, we will establish some important factors in the process of identifying and managing risks for your club.

    • QUESTION 2: RISK MANAGEMENT 

    • Risk management is recognised as an integral part of any good management practice.

      It is the term applied to a logical and systematic method of identifying, prioritising and treating risks associated with any activity or process.  

      A simple risk management program will enable your club to minimise losses and maximise opportunities.

    • CORRECT!

    •   Please try again.

    • REMEMBER...

      Due to the uncertainty of outcomes, risks must be managed or they can have devastating effects, hence the term “risk management”.

       

      Risk management is as much about identifying opportunities as avoiding or alleviating losses.

      To be most effective risk management should become a fundamental part of the club's culture. It should be integrated into your philosophy, practices and plans rather than be viewed or practised as a separate program.

      Risk management should become the business of everyone in the club.

    • QUESTION 3: BENEFITS 

    • Managing risk can be a rewarding experience for any club. You may enjoy a variety of benefits through a structured risk management process including higher standards of service to your members, improved morale and effecive decision making.

      Risk management is as much about protecting your club from foreseeable risk as it is about reducing exposure to litigation or fines/penalties.

    • CORRECT!

    •   Please try again.

    • Potential benefits of Risk Managment...

      The adoption of a structured approach to risk management encourages the following outcomes:

      • More effective decisions;
      • Effective delivery of karting services;
      • Higher standards of service to participants – competitive and non-competitive;
      • Effective allocation and use of resources;
      • Higher standards of accountability;
      • Creativity and innovation in management practice;
      • Improved moral within the club;
      • Flexibility in meeting objectives;
      • Transparent decision making; and
      • Consideration of legal issues and reduced exposure to litigation/penalties as a result of implementing appropriate legal compliance programs.
    • QUESTION 4: LEGAL ISSUES 

    • It's common knowledge, that the law is just a set of rules that guide the way in which things should be done.  These rules govern the smooth operation of our society in the same way that the rules of any sport determine the way in which that sport will be played.  

      Laws apply to all areas of society and there is no good reason why karting clubs should be treated differently.

      The increasing application of the law to sporting clubs means that sport administrators, volunteers and officials may need to identify potential legal risks and take appropriate actions to manage those risks.

      Sporting clubs can be linked to a wide variety of legal issues such as Civil negligence, Taxation, Employment practices, Drugs and many more.

      It is not suggested that everyone within your club must be fully aware of all legal areas/issues, but there is a strong recommendation that your club's committee/administrators should be familiar with the club's legal and statutory obligations. 

    • CORRECT!

    •   Please try again.

    • Legal issues for Kart Clubs...

      Not everyone within your club must be across all legal areas/issues.

      But your club's committee/administrators should be familiar with the club's legal and statutory obligations.

      The ability to identify legal issues and, if need be, seek expert legal opinion at an early stage can greatly minimise the legal impact within a club and reduce conflict amongst its representatives and members.

      The ability for your club to choose risk management options that minimise the impact of the law can create enormous advantage for your club in terms of time, effort and financial cost.

      The courts have shown that the law is involved in sporting clubs in many ways, including (but not limited to):

      • civil and criminal negligence,
      • contracts,
      • the operation of tribunals,
      • discrimination and harassment,
      • reputation (defamation),
      • taxation,
        insurance,
      • copyright,
      • marketing,
      • risk management practices,
      • industrial relations,
      • rules and regulations (incorporation),
      • drugs,
      • transmission of diseases,
      • pregnancy,
      • betting and
      • the environment. 
    • QUESTION 5: NEGLIGENCE 

    • “Spectacular Crash – Driver Sues”

      “Legal Threat To Club”

      “Paralysed Player Sues Over Injury”

      News headlines such as these are becoming more common.

      Participating in sport involves an element of danger or risk. In most cases participants accept the risks as a part of the challenge of participating in sport.

      However, a quick online search of recent media reports and prominent court cases indicates that some injuries are not the result of dangers or risks inherent in participating in sport.  Some involve negligence by clubs or event organisers.

      If your club is accused of negligence, the following elements must be established for the accusation to be successful:

      1. Duty of Care – this is a duty owed by one party (the defendant) to another (the plaintiff). You must take reasonable care to avoid acts or omissions that you can reasonably foresee would likely to cause injury or property damage.
      2. Breach of Duty – to the standard of care – the plaintiff has to show that the defendant has breached a duty to them by falling below the reasonable standard of care. 
      3. Causation – the plaintiff must show that the defendant’s breach of duty of care caused the injury or property damage that they are now complaining about. 
      4. Remoteness of damage – the plaintiff must show that the injury or property damage they suffered which was caused by the defendant was reasonably foreseeable.

    • CORRECT!

    •   Please try again.

    • NEGLIGENCE IN SPORT...

       

      Carelessness and the ill will of others can cause injuries to participants, officials, spectators, organisers and the general public.

      The fact that participants and officials walk onto the pits or track does not mean that they have the right to engage in behaviour or provide facilities that would not be acceptable in another environment.

      Imagine the ‘state of play’ if the participants in a race felt that they were immune to civil sanctions.

      It is important for administrators to understand that there is no automatic legal protection, and that they can be held legally responsible for injuries that occur in the conduct of activities under their control.

      Negligence is one area of particular concern. Negligence is part of the law of torts and consists of falling below the standard of care required in the circumstances to protect others from the unreasonable risk
      of harm.

      Negligence does not require an intention to actually cause harm or damage, and whilst karting injuries generally do not come about as a result of a desire to injure, they can involve a careless disregard for another’s safety, so negligence can be an appropriate action for a damages claim.

       

    • QUESTION 6: SIMPLE RISK MANAGEMENT PROCESS 

    • There are many versions of risk management.  Almost all of them are effective in their own rights.  They all serve a purpose and can be applied to almost any organisation from volunteer (not-for-profit) sporting clubs through to multi-national corporations. 

      But risk management does not need to be complicated.  In fact, many will say that it should remain simple and easy to use.

      The development of simple risk management is crucial to the success of your club.

      A simple risk management process can include the following steps:

      1. Identify risks - undertake a range of regular, objective assessments of your club's governance and operations.  Anything identified that may impact your club's objectives should be considered a risk (positive or negative).
      2. Prioritise these risks - rank the identified risks in order of importance and/or financial requirements.  Risks that may have a catestrophic outcome, should sit at the top of the list.
      3. Treat all risks - treatment options may include reducing, transferring, controlling, accepting and avoiding risks.

    • CORRECT!

    •   Please try again.

    • A SIMPLE RISK MANAGEMENT PROCESS...

      The objective of a simple risk management program is to protect the assets and finanancial resources of the club and its members by reducing risk and the potential for loss.

      Reduced legal risk is a by-product of the implementation of an effective risk management process.

      Think about driving your car to work.  You put on a seat belt.  This is a simple form of risk management.  Yet it may end up saving your life if you lose control of your car or if another vehicle crashes into yours. 

      And... as a by-product of wearing a seatbelt, you are also being legally compliant with the road rules.  Simple.

      But how often do you need to refer to the instruction manual or road rules to learn about how or why you should be wearing a seat belt.

      You don't.  You just know it and you do it.  It is almost automatic.

      Why not make risk management in your club much the same.  Make it "second nature".  Make it "automatic".  But most of all... make it "happen".

    • QUESTION 7: RISK IDENTIFICATION 

    • Identify risk is as simple as asking yourself the following (2) questions:

      1. What will happen (i.e. what could go wrong)?
      2. How or why will it happen?

       

      Here are some of the most appopriate areas you may wish to review as part of your club's risk identification process:

      • People: risks to human beings.  These may be your members, spectators, officials, volunteers and/or the general public.  Is anyone at risk of being injured?
      • Property: risks to things.  These may be owned by the club (such as facilities or equipment) or they may be owned by a third party (such councils, government or specators).  Is there any property at risk of damage?
      • Financial: risks to money.  This may include cash or electronic funds.  It may be the club's money, the bank's money (via a loan) or money tied up in assets.  Is there any money at risk of being lost, stolen, misused or reduced?
      • Legal and Statutory Compliance: risks to the law or rules.  These may include Federal or State laws, however, there may also be statutory rules that can be applied (such as rules of the sport, codes of conduct, policies/procedures, etc). Are there any laws or rules that are at risk of being breached?
      • Image and reputation: risks to the club's reputation.  This may be related to the actions of individuals associated with the club or it may be related to the overall appearance of the club (aesthetically).  Is the club's appearance at risk of effecting the club's reputation?  Are there any individual's at risk of effecting the club's reputation?


      The best part about Risk Identification is that you just have to ask your question and answer "Yes" or "No".  The details can be put together later.

      If you answer "Yes" to any of your questions, then you have identified a risk and now you need to take action.

    • CORRECT!

    •   Please try again.

    • IDENTIFYING RISKS...

      Comprehensive identification using a systematic process is critical as risks that are not identified at this stage are excluded from treatment.

      Approaches used to identify risk include checklists, judgments based on experience and records, brainstorming and common sense.

      The systems used will depend on the activities under review and the types of risk.

      Good risk identification involves examining all sources of risk (e.g. facilities, activities, program supervision and treatment of players’ injuries) and the perspective of all stakeholders, both internal and external.

       

    • QUESTION 8: PRIORITISING RISKS 

    • Prioriting risk can be as simple as estimating:

      The likelihood of each risk:

      1. Unlikely the risk will happen
      2. Possible the risk will happen
      3. Likely the risk will happen
      4. Almost certain the risk will happen

      The consequence of each risk: 

      1. Insignificant (i.e. First aid treatment required or ongoing review of club's plans)
      2. Minor (i.e. Medical attention required or adjustment to club's plans)
      3. Moderate (i.e. serious injury could happen or an interruption to club's plans)
      4. Major (i.e. death/extensive injury could happen or financial hardship could occur to the club)

      By combining your estimates of likelihood and consequences you can quickly establish a priority list of all your risks.  

    • CORRECT!

    •   Please try again.

    • PRIORITISING RISKS...

      Each identified risk should be assessed to decide which factors potentially will have the greatest effect and, therefore, should receive priority in regard to being managed.

      Prioritising risk involves calculating an overall score for each risk.  

      This is done by simply combining the likelihood and consequence scores.

      Sometimes a "Risk Matrix" can be used to assist with this calculation.

      For example:

      The XYZ Kart Club has identified that debris on the track is a risk.

      They believe that the likelihood is Almost Certain (because there is almost always debris on their track that they can't prevent due to weather or other factors).  

      They believe that the consequence is Moderate (because debris on their track could cause a serious injury).

      Using the Risk Matrix below, they calculate an overall priority score.

      The result will determine the risk's overall rating = 12 (Extreme)

      The XYZ Kart Club now has a list of all risks and can prioritise them in order of importance. 

      The most important risks (ones that are probably going to cause the most issues for your club) should be at the top of the list and risks that are not as important (ones that aren't going to be an immediate issue) should be at the bottom.

       

    • QUESTION 9: TREATING RISKS 

    • Treating risk is one of the most important tasks any club will undertake.

      There are a wide range of options available to clubs when it comes to choosing a treatment strategy.  

      Clubs may choose one or more ways to treat each risk, but the important thing is always... DO SOMETHING!

      Here are some of the most widely used risk treatment options:

      • Avoid the risk by deciding not to proceed with the activity that is likely to produce the risk. Avoidance is only a useful form of risk treatment when you decide to end the activity altogether. Excessive risk aversion can result in a club actually failing to recognise that some of its risks are critical to the operation and simply cannot be avoided. 
      • Reduce the likelihood of the risk. This is a proactive measure that relies heavily on your critical assessment of each risk. A simple example of reducing likelihood is the introduction of restricted speeds for juniors. By modifying the rules the likelihood of injury is dramatically reduced.
      • Reduce the consequences of the occurrence. Similar
        to reducing likelihood, this is a proactive measure. An example of reducing consequence is the compulsory wearing of helmets.  Helmets do nothing to reduce the likelihood of a kart leaving the track, but it certainly reduces the consequence of potential head injuries.
      • Transfer the risk. This involves another party bearing or sharing some part of the risk. Examples of this include the use of contracts (e.g. disclaimers) and/or insurance. The transfer of the risk to another party will reduce the risk for your club but may not diminish the overall level of the actual risk.
      • Retain the risk. After risks have been reduced or transferred, there may still be some risk left with your club.  This is known as 'residual risk' and the club may choose to retain this risk.  Plans should be put in place to manage the consequences of these risks if they occur. 
      • Accept the risk.  If a risk is defined as a low priority or has a low likelihood AND a low consequence, your club may simply choose to accept the risk and monitor it just in case it develops into something more significant.

      Treatment options should be implemented with the intent to manage your club's negative exposures to risk or the potential opportunities they may create.

    • CORRECT!

    •   Please try again.

    • TREATING RISKS...

       

      Multiple treatment options can be considered and applied either individually or in combination.

      A key principle of risk treatment is that the cost of managing risk must be commensurate with the benefits obtained from implementing that strategy. However, extremely severe risks, where the consequences of harmful events arising may be so damaging that they may warrant risk reduction measures that are not financially justifiable.

      Conversely, high risks may be considered by some organisations to be a fair price to pay for a spectacular gain in productivity or profitability.
       

    • QUESTION 10: INSURANCE 

    • While prevention is the ultimate aim of any risk management program, there are times when incidents happen regardless of all the prevention measures in place. This is the key reason why further protection should be considered.

      Insurance is an integral part of all risk management programs.

      In simple terms, insurance is a treatment option that transfers the financial risk from your club to an insurance company.

      It should be seen as the last resort (safety net) as people involved in karting must take all reasonable steps to make their activities as safe as possible and minimise the likelihood of insurance claims.

      It is important to ensure that the insurance taken is appropriate to your club and covers the risks that need to be protected. Sports insurance is a specialist area and advice should be received through appropriately qualified and experienced sports insurance specialists.

    • CORRECT!

    •   Please try again.

    • ADDITIONAL INSURANCE CONSIDERATIONS...

      Below are some examples of important insurance policies for your club to consider:

    • KARTING AUSTRALIA INSURANCE 

    • The following insurance policies are automatically covered through the Karting Australia National Insurance Program.

      Affiliated clubs are covered by the policies as per the policy terms, limits and scope of cover.

      For further information, please refer to www.ajg.com.au/ka

    • PUBLIC LIABILITY - INCLUDED IN KA INSURANCE PROGRAM

      Accusations of negligence may be made against the club (as a legal entity) or they may be made against individuals within the club who allegedly caused or contributed to the negligence.

      Administrators, volunteers, officials, etc. can incur personal liability.

      Public liability insurance covers liability that results from loss of or damage to property, loss of use of property and death or injury due to negligence, but excluding breach of professional duty. 

      Public Liability Insurance is automatically provided to all affiliated clubs within the Karting Australia National Insurance Program and provides cover to all affiliated karting clubs including their volunteers, officials and administrators.

    • PROFESSIONAL INDEMNITY - INCLUDED IN KA INSURANCE PROGRAM

      Professional indemnity insurance indemnifies the insured against claims for compensation for breach of professional duty where an accusation of negligence is made suggesting that an act, error, omission or advice caused their losss.

    • PERSONAL ACCIDENT INSURANCE - INCLUDED WITHIN THE KA NATIONAL INSURANCE PROGRAM

      Participating in sport has the potential for injury. Personal Accident Insurance provides agreed benefits in the event of injury where permanent disability is incurred, earning capacity is lost or medical and associated expenses are incurred.

      At times those unfamiliar with insurance have difficulty in identifying how public liability insurance interacts with personal injury covers.

      Public liability insurance responds only in the case where injury or property damage occurs as a result of negligence. A breach of a duty of care is involved, and any compensation is brought about by mutual agreement between the insurer and the injured party or as determined by a judgment in court.

      In the case of personal accident insurance, this is often a 'no fault' policy.  The policy responds with pre-agreed benefits between the insurance company and the insured at the time of taking out the cover and confirmed in the policy schedules. Subject to policy conditions, the agreed benefits are payable if an injury and resultant financial loss occurs.

    • ADDITIONAL INSURANCE 

    • The following policies are not automatically covered by the Karting Australia National Insurance Program.  

      Clubs who require further information should make contact with AJG direct or visit www.ajg.com.au/ka

    • DIRECTORS AND OFFICERS LIABILITY - NOT INCLUDED IN KA INSURANCE PROGRAM

      A Directors and Officers insurance policy has two insuring clauses.

      The first states that the insurer will cover a Director and Officer for any loss where their club (as an incorporated body) may not legally indemnify them as an individual through their incorporation status.

      The second insuring clause states that the insurer will cover the club (as an Incorporated Body) for any loss for which they are legally permitted to pay arising out of any wrongful act committed by any director or officer in their capacity of director or officer.

      It must be noted that these insuring clauses relate to the actions of the directors and/or officers personally, not the actions of the legal entity of the club for whom they act as directors and officers.

      Examples of Directors and Officers Liability coverage may include:

      • Libel & Slander
      • Occupational Health & Safety
      • Attending Investigations/Enquiries
      • Employment Practices Liability
      • Fraud & Dishonesty of Employees
      • Breach of Contract
      • Trade Practices Legislation

    • TRAVEL INSURANCE - NOT INCLUDED WITHIN THE KA NATIONAL INSURANCE PROGRAM

      Travel Insurance is a variety of personal accident insurance, but it can include liability protection, luggage and personal effects cover, travel cancellation benefits, kidnap, ransom and extortion, rental vehicle collision and theft excess waiver benefits in addition to the standard personal accident protection.

    • ASSET INSURANCE - NOT INCLUDED WITHIN THE KA NATIONAL INSURANCE PROGRAM

      Karting clubs are extremely diverse in terms of size, financial turnover and assets. Therefore the types of insurance they will require to protect their property will vary considerably from one club to another.

      Property can be damaged or destroyed by any number of means. Fire, storm and other water damage, vandalism, explosion, burglary and theft, breakdown, misappropriation, impact by vehicles, other types of damage, even earthquake; they all have the potential to provide financial difficulty.

      Some general insurance packages are often not appropriate for the property of karting clubs.  However, by choosing a broker with motor sport experience, it is possible to obtain the various sections of cover required.

    • CANCELLATION AND ABANDONMENT INSURANCE - NOT INCLUDED WITHIN THE KA NATIONAL INSURANCE PROGRAM

      Cancellation and Abandonment insurance policies guard against the costs and loss of revenue associated with canceling, postponing or abandoning activities due to events as specified in the policy schedules e.g. weather, non appearance of special guest, airline strike.

      The cover is specifically designed to fit the requirements of the situation. Special care should be taken to understand the terms and conditions of these covers.

    • CONTINGENCY INSURANCE - NOT INCLUDED WITHIN THE KA NATIONAL INSURANCE PROGRAM

      Has your club ever wanted to offer a large prize incentive for a special activity or event? Special Contingency Insurance protects against financial disadvantage from a nominated contingency e.g. hole in one cover for a golf day - if you offer a prize for a hole in one and someone wins that prize, you can be reimbursed for your financial disadvantage.

    • TASK STATUS 

    • UNABLE TO PROCEED: You have not yet answered all questions above correctly.  Please review your answers.  Once all questions are correct you can proceed to the next page.

    • PAGE BREAK 
  • Task 1 Complete!

    Task 1 Complete!

  • Task 2: Risk Identification Templates

    Task 2: Risk Identification Templates

  • RISK IDENTIFICATION TEMPLATES

    As we have previously discussed in KARM, one of the most important aspects of risk management is 'identification'.

    What can happen?

    How and why can it happen?

    Risk identification using a methodical process is really important.  Risks that are not identified at an early stage are often excluded from your plans and may expose your club to significant issues in the future.

    To assist your club with the risk identification process we have provided the following checklists:

    • Club Maintenance Checklist
    • Property Inspection Checklist

    We have created both an EXAMPLE and TEMPLATE version of each checklist.

    The EXAMPLE (PDF version) is provided to show you how simple the process can be.

    The TEMPLATE (WORD version) allows you to edit the document and tailor it suit your club's needs and associated areas of risk.  We recommend your club develops their own checklists using the templates provided to identify risks within your club's specific operations.

    Please note, these checklist are to be used as a guide only and do not take into account your club's individual circumstances.

    In KARM Level 3 and Level 4, you may be required to submit your own versions of these checklists as evidence of your club's risk management strategy.

     

     

    • KARM Club Operations Checklist 

    • To complete Task 2, you must download and save the KARM Club Operations Checklist file.  

      CLUB OPERATIONS CHECKLIST EXAMPLE (PDF VERSION).

      CLUB OPERATIONS CHECKLIST TEMPLATE (EDITABLE WORD VERSION)

      Once downloaded, please complete the declaration below.

    • KARM Property Inspection Checklist 

    • To complete Task 2, you must download and save the KARM Property Inspection Checklist file.  

      CLUB PROPERTY CHECKLIST EXAMPLE (PDF VERSION).

      CLUB PROPERTY CHECKLIST TEMPLATE (EDITABLE WORD VERSION)

      Once downloaded, please complete the declaration below.

    • TASK 2 STATUS 

    • To proceed to the next task, you must first download the checklists above and complete the declaration for each checklist before proceeding.

    • Task 2 Complete!

      Task 2 Complete!

  • Task 3: Club Commitment

    Task 3: Club Commitment

  • To complete Task 3, you complete the following KARM Commitment Statement to demonstrate your club's commitment to risk management.

    This commitment statement is simply a reference point for your club.  You may use this statement to establish your club's own basis for managing risk or embed this statement into your club's culture.

    Our objective is to encourage a risk management culture within all affiliated karting clubs.

  • Task 3 Complete!

    Task 3 Complete!

  • Please confirm your acceptance of each statement above.  Once all statements above have been accepted you will be eligible to submit your KARM Level 2 Accreditation.

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