Each spring, as the NCAA Tournament tips off, millions of employees across the country shift their attention — if only partially — from spreadsheets and strategy to brackets and buzzer-beaters. While March Madness brings excitement and camaraderie, it also introduces real risks that enterprise risk managers should take seriously.

​Let’s dive into how this nationwide event affects operational, compliance, and strategic risk — and what risk leaders can do to keep their organizations on track while still embracing the madness.

March Madness games take place during work hours, and the temptation to check scores, stream games, or compare brackets is hard to resist. Studies have estimated that billions of dollars in productivity may be lost annually due to workplace distractions during the tournament.

The risks here are subtle but significant:

-Employees miss deadlines or become disengaged from key tasks.

-Customer service levels drop if frontline staff are distracted.

-IT bandwidth is strained by video streaming.

Managing this risk isn’t about shutting down the fun — it’s about aligning expectations and resources. Clear guidelines and a little flexibility can go a long way.

While many office pools are casual and involve minimal money, they can still raise legal concerns:

-In certain states, office bracket pools may be considered illegal gambling.

-Employers could be liable if they promote or ignore prohibited activity on company property or systems.

-Employees may feel pressured to participate in betting, creating HR and inclusivity concerns.

Even if the risk of legal action is low, it's important to be proactive. Risk managers should consult legal or compliance teams and help set boundaries that reduce liability without killing morale.

Over-regulation of fun events like March Madness can harm morale, especially in hybrid or remote work environments where connection is already a challenge. Forward-thinking companies recognize that culture is part of strategy — and that positive employee experiences can increase retention and engagement.

A few ideas to strike the balance:

-Create a company-wide, free-to-enter bracket competition (no cash prizes) with fun rewards like a trophy, extra PTO, or lunch with leadership.

-Designate a “game break” period or stream a key game in a shared space.

​-Encourage team-based participation to foster bonding.

-Clarify Expectations: Remind staff about appropriate use of work time and IT resources.

-Engage Creatively: Promote morale-building activities that align with your culture and values.

-Consult Compliance: Stay on the right side of local laws and internal policies.

-Lead by Example: Encourage managers to participate in a way that models balanced behavior.

March Madness doesn’t have to be a nightmare for risk managers. With a thoughtful approach, it’s an opportunity to demonstrate how risk-aware policies can support business goals and a positive workplace culture.