Page 150 - DMGT304_EVENT_MANAGEMENT

Unit 6: Risk Management

Essentially, risk management occurs anytime an investor or fund manager analyzes and Notes
attempts to quantify the potential for losses in an investment.

6.8 Keywords

Risk of harm: The risk of “harm” is the type of risk that we mostly think about.
Risk of detriment: The risk of “detriment” does not involve injury to something living.
Public liability: 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.
Third party: A third party is someone who is not a member of the organisation, or an employee
of the organisation.
Organisations staging: Organisations staging special events can insure against a wide range of
risks including cancellation of the event.

On-site investigations: On-site investigations provide opportunities for face-to-face discussions
with organisation personnel.
Risk audit: A risk audit involves identifying and assessing all risks so that a plan can be put in place.

6.9 Review Questions

1. Define the term risk.
2. What is the impact of risk in event management?
3. When we evaluate a risk?

4. How do we evaluate risk in event management?
5. “Identifying, evaluating and understanding risks is a very important aspect of business
management.” Comment.

6. Who is third party? What is its role?
7. What is risk of “harm”?
8. What is risk of “detriment”?
9. What does public liability covers?
10. What is staging of an event?

11. “The process of identification, analysis and either acceptance or mitigation of uncertainty
in investment decision-making”. Discuss.
12. What is risk audit?

Answers: Self Assessment

1. evaluate 2. business
3. occupational health 4. risk of “harm”
5. risk of “detriment” 6. Public liability
7. third 8. staging

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