Page 149 - DMGT304_EVENT_MANAGEMENT

Event Management

Notes 3. Worker’s Compensation Insurance - This policy provides for reimbursement and
coverage of all staff, volunteers and officials should these people incur an injury
during the event.
4. Participant Accident Insurance - To transfer the risk associated with injury and loss of
income for athletes competing in the triathlon participant accident insurance needs
to be taken out. This will remove the risk associated with Zoom Promotions directly
contributing to the injury or illness sustained by an athlete while competing.

Questions:
1. Analyze the case and interpret it.
2. What do you infer from it?
3. Write down the case facts.

Source: http://fulltext.ausport.gov.au/fulltext/2003/vic/Help_Sheet7.pdf

6.7 Summary

When we evaluate a risk, therefore, we take into account two factors - the probability of
something happening that we don’t want, and the consequences if it does.
Identifying, evaluating and understanding risks is a very important aspect of business
management. Businesses can also suffer dreadful consequences if risks are not appropriately
managed.

The most widely understood risks are occupational health and safety risks.
The risk of “harm” is the type of risk that we mostly think about.
The risk of “detriment” does not involve injury to something living.
Public liability covers the organisation against liability to pay compensation for any
injury or financial loss sustained by a third party as a result of negligence on the part of the
organisation.

A third party is someone who is not a member of the organisation, or an employee of the
organisation.
Organisations staging special events can insure against a wide range of risks including
cancellation of the event.
The impact of weather on the event, or if a certain contingency happens (such as a large
payout of prize money or the non-appearance of a very important personality or competitor.

On-site investigations provide opportunities for face-to-face discussions with organisation
personnel.

A risk treatment and action plan documents the management controls to be adopted.
Conducting a risk audit is an essential component of developing an event management plan.
A risk audit 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.
The process of identification, analysis and either acceptance or mitigation of uncertainty
in investment decision-making.

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