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October 2024

Avoiding the (Legal) Rough

By Doug McPherson

Golf Business picks the brain of a risk management and compliance expert who shares practical advice on safeguarding your course

You live with it every day: Risk. It’s a reality of the business.
 
How can you manage it? Golf Business posed several questions to Gareth Macklin, founder and CEO of Obbi, an Irish tech company that offers an online platform that integrates safety, compliance and training for courses. 

Q. What key areas of risk do courses face most often in their daily operations?
A. While common risks like fire, chemical hazards and legislative breaches are significant, the greatest risk often lies in not taking safety seriously enough. Many clubs assume they're safe simply because they haven't experienced a recent incident, but the low probability of severe incidents doesn't diminish the potentially enormous consequences.

Q. Are there any new risks that have surfaced as courses have changed?
A. Yes, as courses add events like corporate functions and weddings, new liability risks have surfaced. The focus on environmental sustainability also brings new compliance challenges. The increase in driving ranges has introduced risks associated with new participants, especially youth and group activities.

Q. Are there any risks you see upcoming in the near future?
A. We’re seeing a shift in the insurance industry, with clubs expected to be more proactive in risk mitigation to avoid claims, rather than just reacting to incidents. Regulatory pressures, especially around environmental sustainability, are also increasing, with stricter compliance expected in areas like heat stress regulations.

Q. You’ve said that even the best people with systems in place have said “they’re 95% on top of 95% of their stuff for 95% of their people and don’t necessarily know where the other 5% ranks.” How can course owners discover that other 5%?
A. Course owners should implement comprehensive audits and monitoring systems that automatically track compliance and safety processes. Regular internal audits, gathering staff feedback and continuously updating training are also crucial to address any overlooked risks.
Data plays a vital role, especially as clubs now have more information about their members than ever before, thanks to digital solutions. However, many clubs still rely on manual, paper-based safety folders or Excel spreadsheets. The challenge is ensuring the right information reaches the right people promptly.

Q. What’s the most common and/or most serious mistake course owners make related to risk management and compliance?
A. Underestimating the need for thorough documentation and ongoing training is a common mistake. Initial compliance steps aren't enough; without continuous monitoring and updates, protocols can quickly become ineffective.
Q. What are the most effective risk management/compliance strategies for courses?
A. Regular risk assessments and audits are crucial for spotting issues early. Continuous staff training is essential to ensure everyone understands and follows compliance protocols. Building a strong safety culture, where every team member is informed and committed to maintaining safety, is key. Clubs should also consult with legal and insurance experts to ensure adequate coverage and stay informed about emerging risks.

Q. Are there any risks that sneak up on course owners – risks that owners typically think they have covered but really don’t?
A. A key risk is cybersecurity. Course owners often assume their systems are secure but may miss vulnerabilities in booking systems, POS systems or data storage. Another risk is underinsurance. With rising construction costs, clubs that haven’t surveyed their clubhouse in the last three years may be underinsured. Regularly review insurance coverage and consult with your broker to ensure it's adequate.

Q. What’s your best advice for those who feel they have a good handle on risk/compliance issues but who also want to improve those areas?
A. Safety should be a key budget item, highlighting its importance to the club's success. Begin with a thorough audit of current risk management and compliance processes to find gaps. Use technology to streamline operations and minimize human error. Bringing in an external consultant can offer valuable insights and enhance safety standards.

Most importantly, prioritize safety on par with guest experience and financial controls. It shouldn't be an annual checklist or the duty of a single person. This is precisely why we are called Obbi, we help clubs fulfill their obligations. Safety needs leadership from the top, but the best clubs make sure that everyone, from the boardroom to the operational floor, understands and meets their daily safety responsibilities.

Editor’s Note: Some of Mr. Macklin’s answers have been edited for brevity.

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