Risk and Crisis Management in the Events Industry

Mark Trevor Managing Director, Insurex Expo-Sure

The Event Industry

Event Industry worth an estimated 11 billion to the UK Economy

45% of Event Organisers are not insured 40% of Event Organisers have cancelled an event

What is Risk Management?

Various definitions The process of identification, measurement, control, and minimisation of risks to a level commensurate with the value of the assets protected

Main types of hazard

Physical fire at venue or terrorist attack

Moral poor working practices or inadequate training given to staff

Statement of Recommended Practice (SORP 2000)

What is Risk Management?

Risk Management is Best Practice Charity and Event industry both try to share wherever possible Common goal rather than competitive advantage

How can we help you make your event more successful?

What is Risk Management?

When should I start to manage my risk? When the idea is first thought up!

What is the objective for holding the event?

What could prevent you from hitting these objectives? Create a risk register

Think about prioritising these risks

Frequency versus Severity Risk Profiling Three choices Accept, Reduce or Transfer

CONTINUOUS RISK IMPROVEMENT PROCESS

MEASURE RESULTS
Measure & monitor performance, and continuously improve

IDENTIFY OPPORTUNITY
Mutually explore the situation with the client and form initial hypotheses of problem

Commitment

EXECUTE IMPLEMENT SOLUTION

Create and manage change

CRI PROCESS
Measurement

ANALYSE
Search for the most likely cause(s), refine and test the hypothesis

Measurement

DESIGN/ SELECT BEST SOLUTION

Identify the best solution, the risks involved, and the organisations commitment to change.

The Risk Radar: Illustrative Risk Drivers

In order to effectively assess and manage risk, organisations must learn to look at risk as a whole, and then mitigate and/or finance internally and externally driven risks.

Externally driven
Market demand

Financial Risks

Financial market risks Future Shows Ticket sales / breakeven points Asset values Credit default Liquidity, cash flow issues

Strategic Risks

Internally driven
Intellectual capital Research & development

Customer/ industry changes Alliances

Channels and networks Information systems Accounting / control systems Key managers H.R.

Contractual liability Public liability Property damage

Regulatory environment

Employee injury

Supply chain Brand / reputation

Hazard Risks

Natural disasters Business continuation / Disaster Recovery Plans

Operational Risks

The 4 Quadrants of Risk

Strategic Risk Why are we holding this event? How often are we going to hold it?

Operational Risk
How do we handle an incident at the event? What happens if the venue is not available?

Financial Risk

How many attendees do we need to have to make a profit?

Hazard Risk Fire / terrorist incident

Slip / trip / fall by visitor

Key Risk Management Practices

Risk Assessments Property / Site Surveys

Health and Safety Surveys

Some Organisers at events are making this compulsory for exhibitors

Disaster Recovery / Crisis Management Plans

Brand / Reputation risk Media Management

Crisis Management

Disaster Recovery Plan is essential Ensure that this is tested

K.I.S.S. (Keep It Simple and Straightforward)

First 2 hours / next 4 hours / next 12 hours Chain of command and communication Phone numbers up to date? Where is the plan kept? Media communication essential Brand / reputation risk Expect the unexpected

Risk Management in the Event Industry

Protect the public Health & Safety and property surveys

Crisis Management / Disaster Recovery Plan

Is it up to date?

Brand / Reputation risk

Future events
Donor support

Understand your contract Stress?

Summary

It is never too early Involve all interested parties / stakeholders at the infancy of the project

What are my key risks? Can they be insured?

What can prevent the event from going ahead this year / next year? Risk Management is Best Practice

Share it