Definition of Risk Under Relevant Legislation
In condominium management, risk refers to any condition, event, or action that could result in financial loss, legal liability, property damage, privacy breaches, or harm to residents and visitors.
The Condominium Property Act and Regulation establish governance and operational requirements, while the Occupiers’ Liability Act and privacy legislation impose additional obligations on condominium corporations and managers.
According to the Occupiers’ Liability Act:
"An occupier of premises owes a duty to take such care as in all the circumstances of the case is reasonable to see that a person and that person’s property on the premises will be reasonably safe in using the premises."
Additionally, privacy laws such as the Personal Information Protection Act (PIPA) regulate how condominium corporations and managers collect, store, and disclose personal information.
This means that condominium managers must proactively identify, assess, and manage risks related to both physical safety and personal data protection.
Types of Risks in Condominium Management
Condominium managers must manage various risk categories to protect owners, residents, and the corporation.
A. Physical Risks
Physical risks include hazards that may cause property damage or personal injury. Examples include:
Fire hazards: Non-functional sprinkler systems, blocked emergency exits.
Structural damage: Roof leaks, foundation cracks, deteriorating balconies.
Elevator malfunctions: Inadequate maintenance leading to potential entrapment or injuries.
B. Financial Risks
Financial risks involve monetary losses or mismanagement that impact the condominium corporation’s ability to operate. Examples include:
Inadequate reserve funds: Not setting aside sufficient money for repairs.
Unpaid condominium fees: Leading to financial shortfalls.
Legal disputes: Resulting from contract mismanagement or non-compliance with laws.
C. Legal Risks (Liability and Privacy Concerns)
Legal risks stem from non-compliance with legislation, disputes, or negligence.
Liability under the Occupiers’ Liability Act:
A resident slips on an icy walkway, and the condominium corporation is liable for failing to maintain safe conditions.
A malfunctioning security gate allows unauthorized access, leading to theft.
Privacy risks under the Personal Information Protection Act (PIPA):
Unauthorized disclosure of personal information: Sharing resident contact details without consent.
Improper surveillance: Installing security cameras that capture footage inside private units.
Insecure record-keeping: Failing to protect electronic or paper records containing sensitive owner information.
Under PIPA, condominium corporations must:
Limit the collection of personal information to what is necessary for managing the condominium.
Obtain consent before collecting or sharing personal information.
Securely store and dispose of records to prevent unauthorized access.
Failure to comply with privacy laws may result in investigations, fines, or lawsuits.
Health, Safety, and Privacy Risks
Condominium managers must prioritize health, safety, and privacy by identifying common hazards and using risk assessment tools.
A. Common Hazards in Condominium Buildings
Icy walkways: Failure to remove snow or apply ice melt can lead to slip-and-fall accidents.
Fire safety violations: Lack of smoke detectors, non-functional sprinklers, or obstructed fire exits.
Poor lighting in common areas: Increased security risks, including unauthorized entry or accidents.
Elevator safety: Lack of regular inspections leading to potential malfunctions or injuries.
B. Common Privacy Risks in Condominium Management
Resident email lists shared without consent: Violating PIPA requirements on data disclosure.
Storage of personal financial information: Condominium corporations collecting payment details without proper security measures.
Security cameras: Recording individuals without notice or proper signage, breaching PIPA.
Risk Assessment Tools for Health, Safety, and Privacy Compliance
Condominium managers can use risk assessment tools to systematically identify, evaluate, and mitigate hazards. Recommended strategies include:
Regular property inspections: Document hazards and ensure timely resolution.
Privacy compliance checklists: Verify that data collection and storage meet PIPA requirements.
Incident reporting systems: Record and investigate safety and privacy concerns raised by residents or staff.
