The main purpose of risk management is to prevent, minimize and eliminate unacceptable risks. Risk management consists of analyzing, assessing, controlling and avoiding. In order to properly manage future events, an organization will typically use a combination of risk assumption, risk avoidance, and risk transfer. Risk management is essential any time an event manager analyzes and attempts to assess potential losses in an investment, and then takes the appropriate actions in order to minimize and prevent risks- whether it is losses of capital, to accident prevention.
Simply put, risk management consists of two steps. First, one must determine what risks exist in an investment, such as an event, and then handling those risks in a way best suited to the objectives of the event. Creating a special events management team has the benefit of focusing on the planning and management of a special event and establishing who is specifically responsible for each function. The team can handle important information regarding the planning or management of the event. This can be critical in emergency situations that require decisive action.
The first step in the development of a special events risk management program is to identify the organizations purpose, and establish goals accordingly. Part of establishing goals includes ensuring that the mission and the activities of the event are appropriate, and most of all legal. Making sure the organization has the appropriate resources and skills to create and manage the event is essential. Once the overall purpose and goals of the event have been established, specific risk management goals should now be made, which include: Prevention of injury, operating legally and in compliance of service providers and facility owners, reducing cost of insurance if applicable in order to be eligible for insurance coverage, meeting financial goals- if there are any, avoiding event