RISK ANALYSIS FOR A SPORT FACILITY

IMPORTANT POINTS

You have just been hired as the Facility Manager at “American Military/Public University Arena” in Charles Town, West Virginia. The arena seats 65,000 and is used as a multipurpose facility to host events in college and professional basketball, football, and hockey. This is a newly structured arena. As the Facility Manager, you have been asked to develop a Risk Analysis Plan.

1.    The project must be original; that is you must be THE author of it and it must not have been used for this or any other course.  NOTE:  PLAGIARISM WILL NOT BE TOLERATED. Make certain you understand how to properly cite information with APA formatting and understand the ramifications if you don’t.

2.    Some type of creativity is required. Photos are required. These must be in color and embedded in the text. If you are not certain how to “wrap the text” around the photos I suggest you learn by researching the Internet and looking up tutorials to accomplish this task.

3.    The project will be evaluated for the quality of research on the topic and writing style; in the latter case this means neatness of the paper, organization, and mechanics of writing (which includes spelling).

REQUIRED FORMAT

You need to make certain that all of these are included to receive full points. Failure to include these items will result in a reduction depending on the quality.

I.        Title Page

A.            Use APA format. See the attachments I have on APA format on the home announcement. It is also a good idea to purchase the latest APA manual and keep for all your studies.

II.       TABLE OF CONTENTS

A.            Should be very organized and comprehensive

III.      MAIN SECTION

A.       Overview of the facility’s operation (approximately 1-2 pages)

                   1.       Brief description of the following:

                             a.       What services are provided?

b.       If more than one type of facility exists what facilities are being analyzed (i.e., parking garage)?

                             c.       Who are the stakeholders?

1)   Type of personnel and number of spectators/participants

                             d.       How many clients are serviced?

                             e.       Personnel used for risk management

B.       Matrix – this is the main part of the analysis. This section will usually include 1-2 pages of matrices the rest explaining the reduction techniques. Photos with appropriate captions are a requisite for this section (approximately 2 – 4 pages).

1.       Identify TEN (10) specific risks – these should be either risks you identified as facility manager, or those that you recognize will be there due to your knowledge gleaned from this class. Identify both a financial treatment and a reduction treatment for each risk in your matrix.

2.       Your matrix needs classify each risk: severity & frequency (high, medium, low)

3.       Use an additional matrix to decide whether to transfer or retain financial risks – indicate how risk will be transferred (i.e. insurance, independent contractor, indemnification clause)

4.       Use waivers. Provide at least one  your facility uses use. Be sure and cite where it came from.

5.       Use key words for reduction of risks (i.e. supervisory plan, inspections, in-service education plan)

6.       ANY type of facility will have hundreds of risks associated with it. You are required to cover only 10.

C.       Narrative regarding risk reduction procedures. (approximately 3 pages)

1.       Personnel management

a.       Make sure your facility utilizes miscellaneous personnel policies such as drug testing, anti-smoking.

b.       Discuss the facility’s sexual harassment policy. Provide a example of one.

2.       Discuss the facility’s emergency procedures. These should be general procedures for dealing with accidental bodily injuries, natural phenomena, and behavioral problems – not specific first aid procedures.

a.       Include a sample accident report form. Provide one that is sufficient (give cite).

3.       Discuss your crowd management plan this facility has.  

D.       Compliance with the ADA  (approximately 1-2 pages)

1.            Complete an ADA Checklist

a.       I expect a completed checklist to be included as an Appendix.

IV.      CONCLUSION/SUMMARY (approximately 1-2 pages)

A.       Need comprehensive conclusion or summary; Not a couple of short paragraphs thrown together.

V.       REFERENCES

A.       Must be done in correct APA format

VI.      APPENDIXES

A.       Any forms used, i.e. inspection checklists, participation agreements, rental agreements, lease agreements, waivers, accident report forms,  ADA Checklist etc. 

B.       The appendixes should be discussed in order; first is Appendix A; then Appendix B etc. 

B.            Appendixes should be paginated; need a title page for each

ANALYSIS

A.       This paper will be evaluated for thoroughness in identifying risks and planning risk reduction strategies. Error on the side of providing “too much” detail rather than not enough. The final paper should be something you could actually use if you were out in the real world. This is supposed to be a Risk Analysis…..NOT a report about Risk Management OR a report about a sport facility. Make certain you understand the difference!

CF Estimation. In which of the following situations would a firm’s net cash flow from a capital project be affected? a. A firm spent $5,000 in the previous year in a training program for a group of six engineers who will operate a highly computerized production machinery now being evaluated b. A firm will borrow $80,000 toward the purchase of a new milling machine. The loan will be amortized over the economic life of the equipment at an interest rate of 8 percent producing a first year’s interest payment of $6,400 c. A new high tech manufacturing equipment will replace an existing one. The annual insurance premium on the existing equipment is $1,000. The replacement equipment would also require an annual insurance cost of $1,000 d. None of the above cash flows would be considered an incremental net cash flow in capital budgeting

a) $5000 spent on training program will not affect the cash flows as it is already incurred in previous year and is a sunk costb) Borrowing of $80000 for purchasing a new machine will affect cash…