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Risk Management

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In an age of increased litigation, it is important for groups and individuals to examine the risks and liabilities associated with their activities and behaviors. Organizations are continually being held liable for injuries, property damage, or financial loss associated with their programs or events. Examples of past risk management problems include injuries from fights that occur at sponsored events, drunk driving accidents, alcohol poisoning, property damage caused by members or guests, and injuries or deaths associated with hazing. While some organizations associated with a national organization such as Greek social organizations, professional fraternities and sororities, and national honor societies often have specific risk management and event policies, it is a wise idea for every student organization to examine the risks and liabilities involved with its programming and to develop an active plan to minimize those risks. There is no excuse or indemnification from negligence or poor planning. Four easy steps your organization can take to begin minimizing your risk: Examine the risks involved with your organization's activities and events. Examine the use of alcohol at your organization's event. Secure adequate insurance to cover organization events. Eliminate hazing of any kind from organization activities. Decreasing Liability Is All In The Planning Things to Consider: Have you reviewed this activity with your Student Activities Advisor? Is your national organization aware of this activity? If held in the community, how will this activity affect the neighborhood? Have you informed your neighbors that this activity will be taking place? What liability does the organization run the risk of incurring? What state laws or city ordinances have the potential of being violated? What safeguards do we have to keep these laws from being violated? How will the officers maintain control over the activity? What will the officers do if this activity gets out of hand? List the possible problem situations that could present themselves at your activity. (Make your list long and let Murphy's Law be your guide.) List how you will solve each of the situations you have listed from the above question. Do you have an established procedure to follow in case of emergencies? Are all the officers aware that this activity is going on and are their phone numbers easily accessible. Could you convince a reasonable or prudent man or woman that your event is not potentially dangerous? Is the potential liability for the organization worth the benefits to the organization? Provided by Ron Bender, Risk Management Chair, Association of Fraternity Advisors. Alcohol Eleven Easy Steps to Minimize the Risks Associated with Alcohol Consumption at your Organization's Event: Make sure the consumption, sale, or distribution of alcohol at the event is in compliance with any and all applicable laws of the State of California, City and County of Sacramento, and California State University, Sacramento. (For more information, see the Student Activities' flyer Campus Alcohol Policy.) Never purchase alcohol with organization funds or provide free alcohol to your guests. Your organization could be held responsible for the behavior of individuals who were provided alcohol by the organization. Use a BYOB system or a third party vendor such as a licensed bartender to sell or distribute alcohol. Make sure everyone consuming alcohol at your organization's event is of the legal minimum drinking age in the State of California - 21 years old. A good idea is to have a separate area of the event for those of legal age to consume alcohol. Don't allow visibly intoxicated guests or organization members to continue to consume alcohol. Don't allow any drinking games to take place at the event. Playing drinking games encourages large consumption of alcohol and can lead to quickened intoxication. Provide a means of transportation or escort home from the event were alcohol is being served. Have the number for Sac State SafeRides on hand at the event - 1-800-GO-4-CSUS. Hire a bonded, uniformed security guard(s) or off duty law enforcement officer(s) to help maintain control and to protect participants in the party and those leaving the party. Have a minimum of two guards or officers with more security for larger crowds or special circumstances such as outdoor venues or live entertainment. If the event is on the Sac State campus, Sac State Public Safety Officers must be used - contact your Student Activities advisor for more information. Avoid "open" parties where anyone off the street can come in. Use a guest list and check the identification of those entering the party for both their age and to see if the they are on the guest list. Avoid "serve your self" type arrangements where guests can consume as much alcohol as they wish with no monitoring. This can be done through a cash bar serviced by a licensed third party vendor or a BYOB system. Often many risk management policies limit the number of drinks a guest can bring BYOB to six cans of beer or four wine coolers. The use of kegs, party balls, and tubs of alcoholic punch are also prohibited by many risk management policies and should be discouraged. It is much easier to attach legal liability to an organization and its officers when they have provided alcohol to their guests. Make sure there are several officers of your organization who remain sober to monitor the event and who can call for help if there are any emergencies. The sale of alcohol without a license is illegal. The indirect sale of alcohol by your organization could also be determined illegal. Charging admission to a party and providing free alcohol or charging for food at a tailgate and providing a cup for the keg are both examples of the indirect sale of alcohol and give the appearance to law enforcement of alcohol sale without a license. Insurance Even if you take great care in minimizing the risks involved with your organization's event, sometimes the unavoidable will still happen. This is when you'll be very glad your organization has insurance or has purchased a policy or rider (additional insurance purchased for a particular event to supplement your organization's standard policy) for this particular event. If the organization has followed the provisions of the insurance policy and was not breaking any laws when the accident occurred, the insurance company will most likely pay for any damages made by claimants or in a law suit. More information about insurance policies, individual riders and coverage is available through your organization's national office or the Student Activities Office. Hazing Two areas where organizations have been held liable and been forced to pay large punitive settlements are injuries and deaths resulting from hazing. Hazing of organization members, new or active, alumni or prospective is against the law. Not only can an organization face a civil law suit from the victims of hazing but members involved in hazing can face criminal prosecution. The easiest way to minimize your organization's risk in regards to hazing claims is to eradicate all hazing from your organization's new member activities. (For more information on hazing, ways to eradicate hazing from your organization, and positive alternatives for new member activities, see the Student Activities brochure What Is Hazing?) Event Release Agreement Form Forms are available in the Student Activities Office which you can have participants sign to assume responsibility for their actions at your organization's event. Using this form is a good idea if your organization is planning a sporting event or other event where individuals are expected to participate in physical activity. While utilizing this form does not remove all legal liability from the organization and its officers, it does notify participants of the risks involved with the activity and places responsibility for the actions of the individual upon the participant. Further Questions? Questions concerning risk management or event planning can be directed to your Student Activities advisor in the Student Activities Office (916) 278-6595.