How to manage risk in events’organization?

Master 2 – Hospitality Management Florie THIELIN & Junfeng ZUO

October 2009

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IntroductionWhat is the risk management ?

“Risk management is the way in which uncertainties are properly identified, judiciously analyzed, and pertinently responded so that they will have the best chance of a beneficial outcome and the least chance of a detrimental one.”

Event manager is a risk manager also.

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The Risk Management Process

How to identify risk?1

How to analyze risk? 2

How to respond to risk?3

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Look at past experiences

1. Identify risk - Techniques

Interview the stakeholders

Simulation Forecasting

SWOT Analysis

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1. Identify risk - Phases

Risk management :Risk management :-An integrated, iterative and ongoing processAn integrated, iterative and ongoing process

In which everyone is concerned.In which everyone is concerned.

Source : “Risk management for meetings and events”, Julia Rutherford Silvers, 2008

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1. Identify risk - Characteristics

Physical

4 aspects4 aspectsto identifyto identify

Financial

Legal

Ethical or moral

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2. Analyze risk - MatrixP

roba

bilit

y

Consequence

High

LowMild Severe

Control

Risks identified :1. Bad Weather2. Music band does not come3. Not enough customers4. Mosquito invasion

1

2

3

4

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High 3

Moderate2

2. Analyze risk – Risk Level

Low1 Routine procedure

Specific monitoring procedure

Action

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Insurances

Reducingprobability or impact

Change

Transfer the risk

Control the risk

Avoid the risk

Retain the risk

3. Respond to risk - Options

No solution

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3. Respond to risk - Method

Evaluatethe possible responses

Selectthe best response

(costs/consequences)

Implement itWhat ? When ? Who ?

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To conclude – Do not forget

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RessourcesBook:“Risk management for meetings and events”, Julia Rutherford Silvers, 2008“Professional event coordination ”, Julia Rutherford Silvers, 2004

Internet:http://www.liberation.fr/culture/0101579345-francofolies-la-deprogrammation-du-rappeur-orelsan-fait-du-bruithttp://www.lemonde.fr/culture/article/2009/07/14/deprogramme-aux-francofolies-orelsan-demande-l-arbitrage-du-ministre-de-la-culture_1218522_3246.htmlhttp://tf1.lci.fr/infos/france/societe/0,,4470739,00-orelsan-denonce-une-deprogrammation-injustifiee-.html

http://www.riskmanagement.qld.gov.au http://www.ourcommunity.com.au/insurance/insurance_main.jsphttp://www.ozco.gov.au/arts_resources/other/risk_management_and_insurance_for_arts_enterprises/files/2131/risk_management%202004.pdf

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To conclude – DebateStudy case :

Cancellation of Orlesan - Francofolies 2009

This rapper wrote rude lyrics in one song (Sale Pute).

He should be programmed for the festival (without singing this specific song), but was canceled by the organization a few days before.

Gerard Pont, the organizer manager reacts on the radio.

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To conclude – Debate

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To conclude – DebateStudy case :

Cancellation of Orlesan - Francofolies 2009

-Which risk could you identify with ?-What risk level do you analyze ?-What response would you apply ?-Would you say the final mediatic buzz is positive or not for the Francofolies reputation ? Why ?