June - Club Victoria Inc.
Essential RiskMitigationfor Club Board MembersBy Jim McKenzie, Director of HT SolutionsEveryone will be aware of the recent high profileembezzlement case against a gaming industryemployee.There have also been recent articles in hospitalitymagazines warning gaming venue operators on the riskof the “unintended consequences” arising from inefficientcorporate governance and compliance practices.Full time gaming venue operators, such as hoteliers, canrely upon their experience and in some cases hands-oninvolvement to cover the checks and balances requiredto monitor a business with large cash movements andrestrictive regulatory compliance.But what about the part-time Board Members of thecommunity’s Clubs?They must rely upon their sectional managers and otherpersonnel to ensure their legal liabilities are coveredwith transparent processes that can accurately show apathway of delegated acceptance, implementation, riskidentification, actions engaged and the ultimate reportingacceptance by the Board.A Board member is directly responsible for ensuringgood corporate governance is a practiced culture in theoperations of their Club.Slack corporate governance can have devastatingconsequences on the finances of the Club, its membershipand ultimately its Board members. Liability can stillbe established unless it can be shown that corporategovernance and regulatory compliance processes are inplace and undertaken through a predetermined pathway
that is constantly monitored and signed off by the Board.Only then can a Board member’s risk be minimised.It is appropriate that Board members rely upon theresponsible Club personnel to manage the various risksand report on the actions undertaken and the outcomes,but all too frequently the pathway is blocked by inefficientor incomplete documentation which can allow regulatoryauthorities to make the Board accountable.When regulatory authorities visit through a periodicaudit or following up on a complaint, a structured riskmanagement pathway that is transparently available canshow intent and acceptance of responsibility. On theoccasion of a possible breach in compliance the embeddedprocess allows minimal action by the authority.Any absence of an appropriate corporate governancestructure can result in any or all of fines, prosecution, closureof operations and personal liability.Bureaucratic red tape is now a fact of life for all business andcannot be avoided. It must be accepted and embraced in theculture of business operations. Operational accountabilitymust be part of a Club’s workforce doctrine.Look at the following list to understand just some of therisks, along with some solutions, that are encumbered upona Club’s Board members:We have cost effective software applications available that areeasily implemented and possess the transparent reportingpathways of stored data required for risk mitigation.For further information contact us on 613-9372-7481 or firstname.lastname@example.orgCORPORATE GOVERNANCE Mitigating Operational Risks for Hospitality BusinessesRegulatory Compliance Why Required? Risks? SolutionsResponsible Service ofAlcohol (RSA)Responsible Service ofGaming (RSG)Occupational, Health &Safety (OH&S)• Workplace safety• Community amenity• Community responsibility• Gambling Code of Conduct• Self Exclusion Provisions• Problem Gambling• Safe Workplace Practices• Anti-Bullying Practices• Heavy Fines• Suspension or loss of liquorlicence• Brand Damage• Heavy Fines• Suspension or loss of gaminglicence• Brand Damage• Litigation• Heavy Fines• Closure of operations• Training and certificationImplementation• Operational Checklists• Training and certificationImplementation• Operational Checklists• Training and certificationImplementation• Workplace procedure manuals• Material Safety Data Sheets (MSDS)• Operational Scorecard Reviews• Ready to Work ChecklistsLicensee’s First Steps(LSF)Liquor LicensingCompliance• Proof of Knowledge• Certification requirements• Specific expectations• Audit requirements• Inability to trade• Lack of succession planning• Heavy Fines• Penalty Points• Training and certificationImplementation• Central document gathering• Operational Checklists• Suspension or loss of liquorlicenceGaming LicensingCompliance• Specific expectations• Audit requirements• Code of Conduct• Heavy Fines• Suspension or loss of gaminglicence• Central document gathering• Operational Checklists• Self Exclusion• Money LaunderingAPRA & PPCAComplianceFair Work AustraliaCompliance• Licences covering broadcastingof specific types• Award Compliance• Recording Compliance• Litigation• Heavy Fines• Litigation• Heavy Fines• Acquisition of required licensing• Central HR document gathering• Employment Manuals• Employee Reviews• Brand Damage• Equal OpportunityCLUBConnect May/June 2013 7