Canadian Centre for Ethics in Sport

The Risk and its Impacts:

Cash flow difficulties and inadequate resources result in operational instability as well as board and staff time inefficiencies (managing short-term financial problems), versus working towards long-term objectives and effective program delivery.

Strategies:

• Establish a credit line to bridge short-term financial needs.
• Establish an appropriate surplus and reserve fund to address larger-scale financial emergencies, projects, and/or challenging times.
• Budget conservatively and include budget contingencies.
• Establish strong internal financial controls.
• Institute an audit committee and give it the expertise and authority it requires to oversee finances effectively.
• Develop an investment strategy to ensure maximum leveraging of existing assets.
• Review staffing structures to ensure optimal use of human resources.
• Recruit board members with financial experience.
• Pursue alternative funding sources through fundraising, merchandising, marketing, corporate sponsorship, alumni giving, crowdsourcing or IP leveraging.
• Look for financial savings through collaborative or cost-shared programs such as insurance or registration systems.
• Explore staff secondment opportunities through corporate partners.
• Clearly articulate and communicate member benefits to boost membership.
• Look at potential membership areas currently not tapped, and alternative partners (industry, municipalities, schools).
• Review strategic plan to determine if it is aligned with current reality – may need to change expectations and performance objectives.
• Undergo a brand strategy development process to better align with potential partners/funders.
• Apply an ethical code of standards to accounting and fundraising practices.

Communication Strategies:

• Communications to committees and staff responsible for budgets indicating necessity to adhere to budget.
• Encourage ways to be more effective and efficient with budgets.
• Promote ways to enhance economies of scale.
• Ensure that communications for programs and services offered are customized for each target to maximize impact.
• Communicate what sets you apart from other organizations.

The Risk and its Impacts:

Insufficient organizational leadership, poor governance, membership dissatisfaction, and failure to deliver quality programming to members.

• Develop a formal Board of Directors recruitment and application process that is led by a Governance or Nomination Committee.
• Prepare detailed job/role descriptions for all Directors and Officers.
• Create and maintain a board Manual that includes duties, responsibilities, board schedules, document access, strategic direction, governing documents and rules, conduct guidelines, insurance, etc.
• Develop Board Member Agreements/Contracts that address Board conduct, conflict of interest, intellectual property and confidentiality.
• Develop a standardized new Board Member orientation process.
• All Board of Directors’ members must complete the Governance Essentials E-Learning Course as part of their onboarding.
• Use professional groups to assist with board talent recruitment.
• Establish board performance objectives and complete performance reviews.
• Identify what motivates board members (i.e., professional development, team culture, recognition) and use this information to retain them.
• Identify and groom key leaders (i.e., through committee work) for future Board opportunities (talent ID and development).
• Plan and schedule recognition of board leaders.
• Develop and maintain a succession plan for all Board of Directors’ members.

The Risk and its Impacts:

Failure to adopt or use a relevant strategic plan to its full advantage, leading to misuse of resources, lack of direction, and lack of corporate accountability.

Strategies:

• Develop a communications plan for Board of Directors and general membership that clearly identifies strategic goals and objectives and highlights mission, vision, and values.
• Integrate priority strategic items into operations plan.
• Use strategic plan as a guide when assessing the feasibility of new projects.
• Undertake a regular environmental scan to monitor and plan for risk.
• Adopt a Management by Values approach to daily operations. Reference values in decision-making and team discussions.
• Conduct an annual evaluation to assess the use of the strategic plan and the achievement of strategic objectives.

The Risk and its Impacts

An event such as a pandemic, war, natural disaster, terrorist attack, economic depression, or other unforeseeable crisis causes the sport system to collapse or pause, which significantly impacts participation, athlete development, revenue, programming, staffing and organizational operations, and achievement of strategic goals and objectives.

• Develop a Crisis Management Plan that is aligned with other plans and policies.
• Acquire a list of trusted external advisors who can support the organization through a crisis (legal, trauma, risk management, communications, etc.).
• Manage crisis or incident via a Management by Values approach.
• Identify key spokesperson(s) and define key messaging in consultation with executive leadership.
• Expand online engagement opportunities to keep members engaged and staying relevant.
• Develop financial contingency and reserve funds to buffer potential losses of revenue.
• Develop new policies, procedures, and forms that address the incident (i.e., return to play, facility protocols, screening forms, travel consent).
• Access government funds to diversify programming and sustain operations.

The Risk and its Impacts:

Corporate data is leaked, hacked, lost, or held ransom resulting in loss of business continuity, financial damage, reputational damage, and potential litigation.

Strategies:

• Develop a Crisis Management Plan to address a cyber attack or ransomware scenario.
• Conduct annual review of data storage and office storage processes (third-party management of website and registration system, firewalls, server usage, locks and safes, password protections, etc.).
• Review contracts with third party vendors and intentionally discuss any issues experienced and their response to those issues.
• Reach out to cyber security experts and conduct a cyber security audit or all organizational data.
• Review insurance policy(s) and ensure coverage for IP loss and data protection, and cyber security coverage.
• Connect with other NSOs/PTSOs/MSOs to learn about their best practices and experiences.
• Centralize IP storage (with proper security) to mitigate the loss of IP that is stored on various cloud platforms.

The Risk and its Impacts:

Not being able to determine or decide which projects or programs to prioritize, and which to decline or discontinue.

Strategies:

• Use part-time staff, temporary staff, or contractors when appropriate.
• Explore partnership opportunities with PTSOs to complete projects.
• Invest only in programs that further the organization’s mission and vision.
• Review strategic plan to reconcile which current priorities are relevant to the plan.

The Risk and its Impacts:

Not being able to determine or decide which projects or programs to prioritize, and which to decline or discontinue.

Strategies:

• Use part-time staff, temporary staff, or contractors when appropriate.
• Explore partnership opportunities with PTSOs to complete projects.
• Invest only in programs that further the organization’s mission and vision.
• Review strategic plan to reconcile which current priorities are relevant to the plan.

The Risk and its Impacts:

Reliance on government funding that is tied to high performance results, and risk that this funding will not be stable or secure in the long term due to political realities, poor results, and other unforeseen circumstances. Government funding reductions may significantly impact program delivery and athlete development.

Strategies:

• Refine and deliver a uniform development program (e.g., Run/Jump/Throw, BlastOff, CanBike, Mini Ball) that can be launched nationally to build participation, member numbers, sponsor interest.
• Pursue alumni development strategies.
• Pursue fundraising strategies.
• Investigate improved investment strategies for reserve/foundation funds.
• Perform intellectual property audit and consider opportunities for exploiting these assets more effectively.
• Pursue new membership groups and new private partners.
• Hire an expert to help identify possible revenue streams.
• Undergo a brand strategy development process to better align with potential partners/funders.
• Align strategic plan with Canadian Sport Policy goals.
• Work collectively with PTSOs to secure "sport" sponsor.
• Re-align business expectations with industry standards, through Imagine Canada standards.
• Have the right staff in place to ensure top recruitment and performance.
• Encourage athletes to pursue individual (and non-conflicting) sponsorships.
• Invest only in programs that further the organization’s mission and vision.
• Explore using crowd-funding programs.
• Seek in-kind donations to complement financial contributions.
• Develop relationship management plans with sponsors as a means to maintain and extend relationships.
• Seek multi-year sponsorship contracts.
• Research options for foundation and private donations or grants.
• Improve quality of project descriptions and reporting as a means to support funding and funding maintenance requests.
• Promote the successes of athletes at high-profile events to attract sponsors.
• Contract a marketing specialist to assist with fundraising efforts.

Communication Strategies:

• Look to present information in a different context so people can appreciate what makes you unique.

The Risk and its Impacts:

Risk that the current membership model is not appropriate for the growth of the sport and its athletes or is not aligned with funding guidelines.

Strategies:

• Use a committee or poll current members on various membership structures and options.
• For membership fees, develop a formula that is customized to member needs.
• Where low membership is a threat to funding, consider a national database or other membership tracking system.
• Communicate the consequences of low registration to membership.
• Provide education on the benefits of registration, such as club support, access to coaching, insurance, and event planning.
• Consider recruitment strategies.
• Explore possible explanations for declining membership. May need to work with PTSOs or regions to find solutions.
• Identify problematic regions and develop a strategy to invigorate sport participation.
• Develop an outreach program that PTSOs can use to attract members.
• Conduct assessment of other sport membership models to identify best practices.

Communication Strategies

• Communications strategy should be focused on how to manage expectations.