A Description of Risk Management

Pages: 5 (1745 words) Published: October 26, 2008
Risk management is the term applied to a logical and systematic method of establishing the context, identifying, analyzing, evaluating, treating, monitoring and communicating risks associated with any activity, function or process in a way that will enable organizations to minimize losses and maximize opportunities. (Lecture notes)Risk Management is also described as 'all the things you need to do to make the future sufficiently certain'. (The NZ Society for Risk Management, 2001) The goal for risk management in the event industry should be to allow maximum range of activities to be enjoyed in a safe environment. The golden rule of risk management is to "approach event risk assessment and risk management from the perspective of audience and participant amenity". (Lecture notes) A successful risk management is one in which risks are continuously identified and analyzed for relative importance. The problems should be prevented before it happens. The risk management also involves the duty of care. For event managers Duty of care translate to "Taking actions that will prevent any foreseeable risk of injury to the people who are directly affected by, or involved in, the event. (Lecture notes) Thus, Events managers have the responsibility of duty of care when the likelihood of a mishap happens to event staff, volunteers, participants, performers, audiences and even the public in nearby areas that is affected by an event Before an event being held, the risk management team has to think about the possibilities of the risks, and prepare to handle it on that day. A 1991 USA survey of event managers have identified 10 risk factors at an event. They include sale and consumption of alcohol, size of crowds, over capacity of crowds, inexperienced organizers, poor or untried communications systems, inexperienced security, dangerous or hazardous activities, weather conditions, no evacuation plan and free or uncontrolled admission. We can take some of the examples of the risks factors that often occur in an event. Size of crowds and over capacity crowds could be under control if under good management. Event management team must think of the worst case will happened to the size of the crowds and what can they do to prevent over capacity crowds. There are normally a lot of people got faint and even died due to an over-crowded space in a certain concert. Why was it happened? Some of the concert organizers want to earn the money as much as they can. They don't care about the capacity of the people, for instance, the venue has capacity of 200 people. But they want to sell tickets to more than 200 people, and they have 20 security guards .It is still fine if the audience sitting and enjoying the music. But the thing became bad when the audience became crazy as they saw their idol singing on the stage. They jump on the chair, they push each others, and some even run towards the stage so that they can get closer with their idol. The limited security guards can't help in this situation. If they want to sell more ticket, then they should find a bigger capacity venue, such as outdoor stadium. So that there isn't lack of oxygen, which will cause the faint. And they should also hire more security guards. Thus, risk management is very important for an event, it can help to avoid tragedy happens. Risk management needs planning, which the process requires it organizers to discuss and evaluate. In the process, the four main elements of risk are identification, evaluation, control and review. Firstly, risk identification pointing out what are the risks that might occur. At this stage, it requires skills, experience and knowledge within the team or brought in from outside to assist. They have risk assessment meeting, and involve the whole group to develop a plan to minimize the possibility of a risk. How to identify the risk? There are several strategies that enable effective identification are given in the lecture notes. Firstly, divide large tasks into a...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Risk management Essay
  • Risk Management Plan Essay
  • Risk Management Essay
  • risk management Essay
  • Risk Management Essay
  • Essay on Risk management
  • M4 A1 Risk Management Research Paper
  • Risk Management Plan Essay

Become a StudyMode Member

Sign Up - It's Free