Page 148 - DMGT304_EVENT_MANAGEMENT

Unit 6: Risk Management

12. Conducting a risk audit is an essential component of developing an event management Notes
plan.
13. A risk audit does not involves identifying and assessing all risks so that a plan can be put
in place to deal with any occurrence of any undesirable event which causes harm to people
or detriment to the organization.

14. The process of identification, analysis and either acceptance or mitigation of uncertainty
in investment decision-making.
15. Essentially, risk management occurs anytime an investor or fund manager analyzes and
attempts to quantify the potential for losses in an investment.

Case Study An Event Risk Management Plan - Triathlon Race

oom Promotions, a triathlon promotions company, is planning a triathlon race on
the Gold Coast over the holiday period. The race will host some of the best
Ztriathletes from both Australia and around the world competing for prize money
and competition points in a summer type carnival. The organising committee from Zoom
Promotions is aware that certain legal risks result from running such an event. To protect
themselves from legal action from involved parties the organising committee wants to
develop an event risk management plan.

The event risk management plan is designed to identify, evaluate the likelihood, plan and
deal with potential risks in conducting a triathlon event. The main areas of risk include
that of risk to spectators, athletes, staff, volunteers and the general public.

Each potential risk will receive a rating according the probability of occurrence, severity
of damages both physical and financially to the organising committee. The risks will be
grouped into three categories: High Risk - High priority for Zoom Promotion management
to deal with. Risks likely to contain a high probability of occurrence and substantial
financial impact on the organising committee. Moderate Risk - Some impact on Zoom
Promotions. Likelihood of occurrence is probable. Special attention from management
may be necessary to alleviate risk. Low Risk - Minimal likelihood of occurrence and
minimal impact on the organising committee of Zoom Promotions.

Each risk will also receive an action plan under the following headings: Avoidance -
Management will choose not to conduct activities with the potential of associated risks.
Control - The organising committee will develop policies and procedures to minimise
risk. Finance - Self-funding to provide compensation to personnel involved in the event
of a potential risk occurring. Transfer - Purchase insurance policies in order to transfer the
risk of a particular risk occurring.
To transfer the risk associated with some of the above elements the committee of Zoom
Promotions may decide take out some or all of the following types of insurance:
1. Comprehensive General Liability - This policy covers fire, theft and injury, however,
the organising committee should also take steps to minimise the chances of these
risks occurring.
2. Cancellation or Contingency Insurance - This policy provides coverage for the
cancellation of events due to such occurrences as inclement weather conditions or
non-appearance of athletes.
Contd....

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