Risk and Crisis Management in the Events Industry

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Risk and Crisis Management in theEvents Industry

• Mark Trevor Managing Director, Insurex
  Expo-Sure

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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

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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)

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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?

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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

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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
Measurement
EXECUTE -IMPLEMENT SOLUTION Create and manage
change
ANALYSE Search for the most likely cause(s),
refine and test the hypothesis
DESIGN/ SELECT BEST
SOLUTION Identify the best solution, the
risks involved, and the organisations
commitment to change.
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The Risk Radar Illustrative Risk DriversIn
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
Strategic Risks
Financial Risks
Financial market risks
Future Shows
Ticket sales / breakeven points
Customer/ industry changes
Internally driven
Asset values
Intellectual capital
Alliances
Research development
Credit default
Liquidity, cash flow issues
Channels and networks
Information systems
Contractual liability
H.R.
Accounting / control systems
Public liability
Regulatory environment
Key managers
Property damage
Employee injury
Supply chain
Brand / reputation
Operational Risks
Hazard Risks
Natural disasters
Business continuation / Disaster Recovery Plans
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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

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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

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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

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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?

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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