Risk Management for Events

RISK MANAGEMENT FOR EVENTS

By:

Ellie Cutler, Devin Happe, Jacquelyn Luedtke Brooke Prouty, Jessica Stevens

What is the trend?

• “The identification, assessment, and prioritization of risks”

• “The forecasting and evaluation of financial risks together with the identification of procedures to avoid or minimize their impact”

Why is it important?

Trend

• Planning for the unexpected• Plans, Preparation, Results, Evaluation

Quote

“Companies don’t plan to fail,

they fail to plan…”

How it’s used!• There are 5 steps that must be taken when dealing with risk management.

Usage

Elements Risk Possibility Severity

Vendor Management Ruined Cake Moderate Low

 Bride Management Runs Away Low Very high

 Activities Management

Rain at outdoor weddingIn Seattle, WA

High Very high

Security Management

Brawl Low Moderate

Step 1: Identify those elements or activities which could carry a risk. 

Step 2: Identify the risks associated with each element or activity. 

Usage• Step 3: Determine the possibility of occurrence of the

risk and the severity of the consequences if the risk does happen.

Usage• Step 4: Risk Prioritization 

Elements Risk Possibility Severity

Vendor Management Ruined Cake Moderate Low

 Bride Management Runs Away Low Very high

 Activities Management

Rain at outdoor weddingIn Seattle, WA

High Very high

Security Management

Brawl Low Moderate

Usage

• Step 5: Formulate, prepare & implement strategies to manage risks• Risk Avoidance• Risk Retention• Risk Transfer• Risk Reduction

Monitor Risks Periodically

Special Considerations

• Consider all types of risks that could happen…• What could harm event

goers or event staff?• What legal obligations

could happen due to risks that occur?

Consideration

• How will the risks limit your event?• Cause you to hire more

staff

• Make some wants unable to have• Such as off-site parking,

multiple stage levels, floor access at a concert, etc.

Consideration

• Do your research…• Contact other venues who have had similar events

• What problems have they had?• How did they troubleshoot the issues?• What do they wish they would have done?

Consideration

• How will the risks and limitations you have considered affect your venue and the event wanting to be held?• Will you spend more money on structural changes than the event

will make?• Will you lose customers due to not being able to put on the event

as intended?• Will you gain customers from quick thinking and innovative ideas to

make the event work?

Consideration

• Weigh the pros vs. cons• Talk with others

• Have you considered all risks, possibilities, and limitations

• Consider how this will affect your workers as well as the guests• Is holding the event a smart thing for all involved?

Applications• Planning an outdoor wedding

• Calculate the risk of unfortunate weather and determine the severity of the risk

• Will there be serious consequences in the chance of bad weather?

• Are you going to have a back up indoor location?

• Monitor the weather and continue to update your plan for the day of the event

Applications• Planning a heavy metal rock

concert• Calculate the risk of the crowd getting

out of control and determine the severity of the risk

• Could there be serious consequences in the chance that someone gets injured?

• Are you going to have highly trained security and medical staff on site at the event at all times? Are you going to allow the consumption of alcohol during your event?

• Monitor the crowd during the concert to make sure the situation is under control

Applications• Planning activities for

children at camp• Calculate the risk of an injury

and determine its severity• Could there be serious

consequences if a child was injured?

• Are you going to have 24/7 medical staff at your camp?

• Monitor children during activities and make sure they are being safe

Recap

• What is risk management?• “The identification,

assessment, and prioritization of risks”

• Why is it important?• To protect success

• Five Steps..

1. Identify Elements

2. Identify Risks

3. Determining the possibility

4. Risk Prioritization

5. Monitor Risks

Recap

• Special Obligations• Legal work• What could be harmful

• Cover your tails• Workers

• Do you research• Pros vs. Cons