Risk Management:  Top Ten Tips of Risk Management Practical Issues and Solutions ICMS Case Study 45 th  ICCA Congress & Ex...
Top Ten Tips of Risk Management   Mark Blair – Sales and Marketing Manager Insurex Expo-Sure, UK
Topics to be covered <ul><li>Introduction </li></ul><ul><li>UK Industry Survey </li></ul><ul><li>What is Risk Management? ...
Insurex Expo-Sure <ul><li>We are in the meetings / events industry </li></ul><ul><li>What do I know? </li></ul><ul><ul><li...
UK Industry Survey <ul><li>41% of Organisers have cancelled an event </li></ul><ul><li>67% of the cancelled events were no...
What is Risk Management? <ul><li>Various definitions </li></ul><ul><ul><li>The process of identification, measurement, con...
What is Risk Management? <ul><li>When should I start to manage my risk? </li></ul><ul><ul><li>When the idea is first thoug...
The 4 Quadrants of Risk <ul><li>Strategic Risk </li></ul><ul><ul><li>Why are we holding this event? </li></ul></ul><ul><ul...
Top Ten Tips <ul><li>Talk to each other – agree each party’s action points </li></ul><ul><li>Consider the Strategic Object...
Top Ten Tips <ul><li>Agree a “Risk Management” strategy </li></ul><ul><ul><li>Outside consultants needed? </li></ul></ul><...
Top Ten Tips <ul><li>Test the plan </li></ul><ul><ul><li>Desk top walk through at the least </li></ul></ul><ul><li>Risk As...
Relationship between Risk Management and Insurance <ul><li>You can only look to transfer your risks when you understand wh...
Crisis Management <ul><li>Disaster Recovery Plan is essential </li></ul><ul><ul><li>Ensure that this is tested </li></ul><...
Summary <ul><li>It is never too early </li></ul><ul><ul><li>Involve all interested parties / stakeholders at the infancy o...
Risk Management A case study of ICMS   <ul><li>Case Study Overview </li></ul><ul><li>Starting Point – a conference busines...
Risk Management A case study of ICMS - overview <ul><li>Security, nerves and dealing with the new world terror paradigm – ...
Starting Point – a conference business journey – the five steps <ul><li>ICMS – in business for 40 years </li></ul><ul><ul>...
ICMS Head Office Melbourne, Australia
Starting Point – a conference business journey – the five steps <ul><li>In early 2001 management decided to pursue risk ma...
Starting Point – a conference business journey – the five steps <ul><li>The risk model chosen to be applied to ICMS was ba...
The Conference Environment (micro and macro) Element 1 Communicate and Consult <ul><li>The timeline for the implementation...
The Conference Environment (micro and macro) Element 2  Establish the Context <ul><li>The micro conference environment – I...
ICMS STAFF <ul><li>Sarah Markey-Hamm </li></ul><ul><li>National Manager </li></ul>
Step 1 Identify Risks <ul><li>Brainstorming with colleagues </li></ul><ul><li>Talking with industry </li></ul><ul><li>Revi...
Step 1 Identify Risks   Some Possible Risk Categories to Consider <ul><li>Risk Categories </li></ul><ul><li>Financial </li...
Step 2 Analyse all the businesses risks <ul><li>ICMS Stakeholder analysis : why do we need to know who is out there? </li>...
An ICMS Stakeholder <ul><li>Clive Scott </li></ul><ul><li>General Manager of Sofitel Melbourne </li></ul>
An ICMS Stakeholder <ul><li>Frank Mohren </li></ul><ul><li>Director of Operations </li></ul><ul><li>Melbourne Exhibition a...
An ICMS Stakeholder <ul><li>Joel Cooper </li></ul><ul><li>Exhibitions Manager </li></ul><ul><li>Harry the Hirer </li></ul>
An ICMS Stakeholder <ul><li>Tracey Crosling </li></ul><ul><li>Sales Manager </li></ul><ul><li>Victorian Racing Commission ...
Step 3 Evaluate the Risks <ul><li>Apply a rating, scoring method </li></ul><ul><li>Catastrophic, Extreme, very high, high,...
ICMS STAFF <ul><li>Con Papadakis </li></ul><ul><li>Conference Manager </li></ul>
Step 4 Treat <ul><li>Apply controls </li></ul><ul><li>Use experts </li></ul><ul><li>More training </li></ul><ul><li>Remove...
ICMS STAFF <ul><li>Patty D’Cruz </li></ul><ul><li>Conference Manager </li></ul>
Step 5 Monitor and Review <ul><li>Meet to discuss the conference using the risk plan as a working document </li></ul><ul><...
Financial Return on Investment – how do you measure risk management as a business tool? <ul><li>Some Questions to consider...
ICMS STAFF <ul><li>Barrie Markey </li></ul><ul><li>Managing Director </li></ul>
ICMS STAFF <ul><li>Mirerva Keogh </li></ul><ul><li>Sponsorship and Exhibition Co-ordinator </li></ul>
Other Considerations and Themes <ul><li>Institutional/Government compliance requirements </li></ul><ul><li>Security, nerve...
ICMS STAFF <ul><li>Abigail Krause </li></ul><ul><li>National Business Development Manager </li></ul>
ICMS STAFF <ul><li>Lisa McNaught </li></ul><ul><li>Business Development Manager </li></ul>
Other Considerations and Themes <ul><li>The Risk Plan – what does it look like? </li></ul><ul><li>Policies and Procedures ...
Risk Strategy Pros and Cons <ul><li>Pros </li></ul><ul><li>A good marketing tool </li></ul><ul><li>A helpful legal aid </l...
Discussion Topics and Themes <ul><li>Do you need to have a risk management plan or is what you are doing sufficient to mee...
Thank you! 45 th  ICCA Congress & Exhibition Date: Monday 30 th  October 1600 - 1730 International Congress & Convention A...
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www.iccaworld.com Risk Management:

  1. 1. Risk Management: Top Ten Tips of Risk Management Practical Issues and Solutions ICMS Case Study 45 th ICCA Congress & Exhibition Date: Monday 30 th October 1600 - 1730 International Congress & Convention Association
  2. 2. Top Ten Tips of Risk Management Mark Blair – Sales and Marketing Manager Insurex Expo-Sure, UK
  3. 3. Topics to be covered <ul><li>Introduction </li></ul><ul><li>UK Industry Survey </li></ul><ul><li>What is Risk Management? </li></ul><ul><li>Top Ten Tips </li></ul><ul><li>Crisis Management </li></ul>
  4. 4. Insurex Expo-Sure <ul><li>We are in the meetings / events industry </li></ul><ul><li>What do I know? </li></ul><ul><ul><li>15 years in the insurance industry </li></ul></ul><ul><ul><li>Last 6 years working with International Organisations, Public Sector, Central Government, United Nations agencies, major corporations, charities and a very large air show </li></ul></ul><ul><ul><li>Facilitator not a Practitioner </li></ul></ul><ul><ul><li>“ How can we help you make your </li></ul></ul><ul><ul><li>events more successful?” </li></ul></ul>
  5. 5. UK Industry Survey <ul><li>41% of Organisers have cancelled an event </li></ul><ul><li>67% of the cancelled events were not insured </li></ul><ul><li>48% of organisers are not insured </li></ul><ul><li>51% of organisers buy insurance to protect reputation </li></ul><ul><li>Key concerns </li></ul><ul><ul><li>A key attendee or spokesperson cancelling </li></ul></ul><ul><ul><li>Damage to the venue </li></ul></ul><ul><ul><li>Weather disrupting your event </li></ul></ul><ul><ul><li>Transport problems disrupting your event </li></ul></ul><ul><ul><li>Being sued by someone injured at event </li></ul></ul>
  6. 6. What is Risk Management? <ul><li>Various definitions </li></ul><ul><ul><li>The process of identification, measurement, control, and minimisation of risks to a level commensurate with the value of the assets protected </li></ul></ul><ul><li>Main types of hazard </li></ul><ul><ul><li>Physical – fire at venue or terrorist attack </li></ul></ul><ul><ul><li>Moral – poor working practices or inadequate training given to staff – risk is increased for temporary / casual labour </li></ul></ul><ul><li>Risk Management is Best Practice </li></ul><ul><ul><li>Event industry try to share wherever possible </li></ul></ul><ul><ul><li>Common goal rather than competitive advantage </li></ul></ul>
  7. 7. What is Risk Management? <ul><li>When should I start to manage my risk? </li></ul><ul><ul><li>When the idea is first thought up! </li></ul></ul><ul><li>What is the objective for holding the event? </li></ul><ul><li>What could prevent you from hitting these objectives? </li></ul><ul><li>Create a risk register </li></ul><ul><li>Think about prioritising these risks </li></ul><ul><ul><li>Frequency versus Severity </li></ul></ul><ul><ul><li>Risk Profiling </li></ul></ul><ul><ul><li>Three choices – Accept, Reduce or Transfer </li></ul></ul>
  8. 8. The 4 Quadrants of Risk <ul><li>Strategic Risk </li></ul><ul><ul><li>Why are we holding this event? </li></ul></ul><ul><ul><li>Who is responsible for what element of cover / protection? </li></ul></ul><ul><li>Operational Risk </li></ul><ul><ul><li>How do we handle an incident at the event? </li></ul></ul><ul><ul><li>What happens if the venue is not available? </li></ul></ul><ul><li>Financial Risk </li></ul><ul><ul><li>How many attendees do we need to have to make a profit? </li></ul></ul><ul><li>Hazard Risk </li></ul><ul><ul><li>Fire / terrorist incident </li></ul></ul><ul><ul><li>Slip / trip / fall by visitor </li></ul></ul><ul><ul><li>Food poisoning </li></ul></ul>
  9. 9. Top Ten Tips <ul><li>Talk to each other – agree each party’s action points </li></ul><ul><li>Consider the Strategic Objectives </li></ul><ul><ul><li>Why is the event being held? </li></ul></ul><ul><ul><li>What could happen to prevent this being held in future years? </li></ul></ul><ul><li>Make a list of the 10 issues that could affect the success of the exhibition </li></ul><ul><ul><li>Frequency versus Severity </li></ul></ul><ul><ul><li>Prioritise the list </li></ul></ul><ul><li>Can any of the Top 10 risks be transferred? </li></ul>
  10. 10. Top Ten Tips <ul><li>Agree a “Risk Management” strategy </li></ul><ul><ul><li>Outside consultants needed? </li></ul></ul><ul><li>Crisis Management Plan needed? </li></ul><ul><ul><li>Dovetail in with DRP of the venue </li></ul></ul><ul><li>Protect the “Brand” of the event </li></ul><ul><ul><li>Media communication Plan is essential yet often forgotten </li></ul></ul>
  11. 11. Top Ten Tips <ul><li>Test the plan </li></ul><ul><ul><li>Desk top walk through at the least </li></ul></ul><ul><li>Risk Assessments </li></ul><ul><ul><li>Make special provision for casual or voluntary staff </li></ul></ul><ul><li>Documentation is essential </li></ul><ul><ul><li>If it is not written down it did not happen! </li></ul></ul>
  12. 12. Relationship between Risk Management and Insurance <ul><li>You can only look to transfer your risks when you understand what they are </li></ul><ul><li>Rating guide offers Underwriter facility to offer terms between agreed scales </li></ul><ul><ul><li>“Why should I reduce my rates?” </li></ul></ul><ul><ul><ul><li>Crisis Management Plans </li></ul></ul></ul><ul><ul><ul><li>Structured Training for temporary staff </li></ul></ul></ul><ul><ul><ul><li>Health & Safety Assessments </li></ul></ul></ul><ul><ul><ul><li>Increased Security </li></ul></ul></ul><ul><li>Majority of events are not insured </li></ul><ul><ul><li>Lack of understanding? </li></ul></ul><ul><ul><li>Informed decision? </li></ul></ul>
  13. 13. Crisis Management <ul><li>Disaster Recovery Plan is essential </li></ul><ul><ul><li>Ensure that this is tested </li></ul></ul><ul><ul><li>K.I.S.S. </li></ul></ul><ul><ul><li>First 2 hours / next 4 hours / next 12 hours </li></ul></ul><ul><ul><li>Chain of command and communication </li></ul></ul><ul><ul><li>Phone numbers up to date? </li></ul></ul><ul><ul><li>Where is the plan kept? </li></ul></ul><ul><ul><li>Media communication essential </li></ul></ul><ul><ul><ul><li>Brand / reputation risk </li></ul></ul></ul><ul><ul><li>Expect the unexpected </li></ul></ul>
  14. 14. Summary <ul><li>It is never too early </li></ul><ul><ul><li>Involve all interested parties / stakeholders at the infancy of the project </li></ul></ul><ul><li>What are my key risks? </li></ul><ul><ul><li>Can they be insured? </li></ul></ul><ul><li>What can prevent the event from going ahead this year / next year? </li></ul><ul><li>Risk Management is Best Practice </li></ul><ul><ul><li>Share it </li></ul></ul>
  15. 15. Risk Management A case study of ICMS <ul><li>Case Study Overview </li></ul><ul><li>Starting Point – a conference business journey – the five steps </li></ul><ul><li>The Conference Environment (micro and macro) </li></ul><ul><li>Stakeholder Analysis: why do we need to know who is out there? </li></ul><ul><li>Financial Return on Investment – how do you measure risk management as a business tool? </li></ul><ul><li>Institutional/Government compliance requirements </li></ul>
  16. 16. Risk Management A case study of ICMS - overview <ul><li>Security, nerves and dealing with the new world terror paradigm – reassuring your client/venue and everyone else! </li></ul><ul><li>Sales and Marketing benefits – the pay off – yes really? </li></ul><ul><li>The Risk Plan – what does it look like? </li></ul><ul><li>Policies and Procedures – how long is a piece of string? </li></ul><ul><li>Pros and Cons – is it black and white? </li></ul>
  17. 17. Starting Point – a conference business journey – the five steps <ul><li>ICMS – in business for 40 years </li></ul><ul><ul><li>Offices in Melbourne, Sydney, Brisbane, Canberra </li></ul></ul><ul><li>31 full time employees </li></ul><ul><li>15 casual employees </li></ul><ul><li>Specializes in conference management </li></ul><ul><li>Barrie Markey – Managing Director </li></ul><ul><li>Sarah Markey-Hamm – National Manager </li></ul>
  18. 18. ICMS Head Office Melbourne, Australia
  19. 19. Starting Point – a conference business journey – the five steps <ul><li>In early 2001 management decided to pursue risk management as part of its overall business strategy </li></ul><ul><li>I was asked to develop a risk strategy that would include the following: </li></ul><ul><ul><li>Risk policy </li></ul></ul><ul><ul><li>Risk procedures </li></ul></ul><ul><ul><li>Risk plan template </li></ul></ul><ul><ul><li>Staff Training </li></ul></ul><ul><ul><li>Ongoing monitoring and communication back to management and staff </li></ul></ul>
  20. 20. Starting Point – a conference business journey – the five steps <ul><li>The risk model chosen to be applied to ICMS was based on the Australian and New Zealand Standard </li></ul><ul><li>A/NZS4360 2004 Risk Management </li></ul><ul><li>Key Elements are </li></ul><ul><li>Communicate and consult </li></ul><ul><li>Establish the context </li></ul><ul><li>Key Steps are: </li></ul><ul><li>Identify </li></ul><ul><li>Analyse </li></ul><ul><li>Evaluate </li></ul><ul><li>Treat </li></ul><ul><li>Monitor and Review </li></ul>
  21. 21. The Conference Environment (micro and macro) Element 1 Communicate and Consult <ul><li>The timeline for the implementation of the risk plan was 18 months which consisted of: </li></ul><ul><ul><li>6 months to develop the policies and procedures </li></ul></ul><ul><ul><li>6 months to train staff and implement the plan </li></ul></ul><ul><ul><li>6 months for monitoring, reviewing and fine tuning </li></ul></ul><ul><li>Critical to the success of the plan were the two elements of: </li></ul><ul><ul><li>Communication and consultation to all relevant stakeholders </li></ul></ul>
  22. 22. The Conference Environment (micro and macro) Element 2 Establish the Context <ul><li>The micro conference environment – ICMS’ offices </li></ul><ul><ul><li>Dealing with employees from all positions and responsibilities – engagement, understanding, acceptance, empowerment </li></ul></ul><ul><li>The macro conference environment – what are the tasks, processes, work, jobs that ICMS is involved in and where are they done? </li></ul><ul><ul><li>Who are the external relationships that ICMS has in its conference life cycle? </li></ul></ul>
  23. 23. ICMS STAFF <ul><li>Sarah Markey-Hamm </li></ul><ul><li>National Manager </li></ul>
  24. 24. Step 1 Identify Risks <ul><li>Brainstorming with colleagues </li></ul><ul><li>Talking with industry </li></ul><ul><li>Reviewing past conferences </li></ul><ul><li>Listing what products and services ICMS offer clients </li></ul><ul><li>Examining ICMS’ documents, templates, budget spreadsheets, reporting tools </li></ul><ul><li>Internal and external communication methods used at ICMS </li></ul><ul><li>This leads to a long list of potential and real risks that impact on ICMS’ ability to deliver to it’s clients and stakeholders </li></ul><ul><li>From the small to the large </li></ul><ul><li>From the simple to the complex </li></ul><ul><li>From the obvious to the improbable </li></ul>
  25. 25. Step 1 Identify Risks Some Possible Risk Categories to Consider <ul><li>Risk Categories </li></ul><ul><li>Financial </li></ul><ul><li>Economic </li></ul><ul><li>Political </li></ul><ul><li>OH&S </li></ul><ul><li>Cultural </li></ul><ul><li>Human Resources </li></ul><ul><li>Environmental </li></ul><ul><li>Legal </li></ul><ul><li>Duty of Care </li></ul><ul><li>Stakeholder </li></ul><ul><li>Venue </li></ul><ul><li>Equipment </li></ul>
  26. 26. Step 2 Analyse all the businesses risks <ul><li>ICMS Stakeholder analysis : why do we need to know who is out there? </li></ul><ul><li>Probability and Impact - what if? – how bad? </li></ul><ul><li>Likelihood and Consequence </li></ul><ul><li>Business Continuity modeling </li></ul>
  27. 27. An ICMS Stakeholder <ul><li>Clive Scott </li></ul><ul><li>General Manager of Sofitel Melbourne </li></ul>
  28. 28. An ICMS Stakeholder <ul><li>Frank Mohren </li></ul><ul><li>Director of Operations </li></ul><ul><li>Melbourne Exhibition and Convention Centre </li></ul>
  29. 29. An ICMS Stakeholder <ul><li>Joel Cooper </li></ul><ul><li>Exhibitions Manager </li></ul><ul><li>Harry the Hirer </li></ul>
  30. 30. An ICMS Stakeholder <ul><li>Tracey Crosling </li></ul><ul><li>Sales Manager </li></ul><ul><li>Victorian Racing Commission </li></ul>
  31. 31. Step 3 Evaluate the Risks <ul><li>Apply a rating, scoring method </li></ul><ul><li>Catastrophic, Extreme, very high, high, medium, low, miniscule </li></ul><ul><li>Always, very often, often, occasionally, rarely </li></ul><ul><li>Eventual risk rating based on the likelihood, impact analysis </li></ul>
  32. 32. ICMS STAFF <ul><li>Con Papadakis </li></ul><ul><li>Conference Manager </li></ul>
  33. 33. Step 4 Treat <ul><li>Apply controls </li></ul><ul><li>Use experts </li></ul><ul><li>More training </li></ul><ul><li>Remove risk </li></ul><ul><li>Change the scope, objectives, aims of the conference </li></ul><ul><li>Take out more insurance </li></ul><ul><li>Add more staff/Different staff </li></ul><ul><li>Ensure full stakeholder input – ownership - responsibility </li></ul><ul><li>Cancel conference </li></ul>
  34. 34. ICMS STAFF <ul><li>Patty D’Cruz </li></ul><ul><li>Conference Manager </li></ul>
  35. 35. Step 5 Monitor and Review <ul><li>Meet to discuss the conference using the risk plan as a working document </li></ul><ul><li>Have the aims, objectives and scope of the conference remained the same? </li></ul><ul><li>Are timeframes and schedules on track? </li></ul><ul><li>Checklist used to monitor the conference in conjunction with the risk plan </li></ul><ul><li>From the above points, information was communicated to relevant personnel </li></ul>
  36. 36. Financial Return on Investment – how do you measure risk management as a business tool? <ul><li>Some Questions to consider </li></ul><ul><li>Insurance premiums reduced or increased? </li></ul><ul><li>Are you spending less time in court? </li></ul><ul><li>Has the business reputation remained unsullied, intact and respected? </li></ul><ul><li>Have new and returned business levels increased? </li></ul><ul><li>Has staff turnover changed? </li></ul><ul><li>Any offers to buy your business? </li></ul><ul><li>Since 2001 ICMS has seen a steady growth in business, </li></ul><ul><li>A business acquisition (Canberra) </li></ul><ul><li>Greater confidence in handling allegations of non-performance – thus less fear of the litigious environment </li></ul>
  37. 37. ICMS STAFF <ul><li>Barrie Markey </li></ul><ul><li>Managing Director </li></ul>
  38. 38. ICMS STAFF <ul><li>Mirerva Keogh </li></ul><ul><li>Sponsorship and Exhibition Co-ordinator </li></ul>
  39. 39. Other Considerations and Themes <ul><li>Institutional/Government compliance requirements </li></ul><ul><li>Security, nerves and dealing with the new world terror paradigm – reassuring your client/venue and everyone else! </li></ul><ul><li>Sales and Marketing benefits – the pay off – yes really? </li></ul>
  40. 40. ICMS STAFF <ul><li>Abigail Krause </li></ul><ul><li>National Business Development Manager </li></ul>
  41. 41. ICMS STAFF <ul><li>Lisa McNaught </li></ul><ul><li>Business Development Manager </li></ul>
  42. 42. Other Considerations and Themes <ul><li>The Risk Plan – what does it look like? </li></ul><ul><li>Policies and Procedures – how long is a piece of string? </li></ul><ul><li>Pros and Cons – is it black and white? </li></ul>
  43. 43. Risk Strategy Pros and Cons <ul><li>Pros </li></ul><ul><li>A good marketing tool </li></ul><ul><li>A helpful legal aid </li></ul><ul><li>An excellent training and educational tool </li></ul><ul><li>Ensures a better understanding of the business </li></ul><ul><li>Keeps staff in touch with the industry and related fields </li></ul><ul><li>Disciplines staff </li></ul><ul><li>Cons </li></ul><ul><li>Needs to have total organizational commitment </li></ul><ul><li>Needs to be driven </li></ul><ul><li>Should not be ignored once up and running </li></ul><ul><li>Continually needs updating and reviewing </li></ul>
  44. 44. Discussion Topics and Themes <ul><li>Do you need to have a risk management plan or is what you are doing sufficient to meet business continuity and quality process management? </li></ul><ul><li>Do the benefits outweigh the costs of risk management for your business? </li></ul><ul><li>How will risk management change over the next five years for our business environment? </li></ul><ul><li>Should there be an industry standard for risk management on an international level? </li></ul><ul><li>Evaluate last night’s event at the Rhodes fortress from a risk management perspective. As a starting point you can apply the five steps discussed in the case study </li></ul><ul><li>Key Steps are: </li></ul><ul><li>Identify </li></ul><ul><li>Analyse </li></ul><ul><li>Evaluate </li></ul><ul><li>Treat </li></ul><ul><li>Monitor and Review </li></ul>
  45. 45. Thank you! 45 th ICCA Congress & Exhibition Date: Monday 30 th October 1600 - 1730 International Congress & Convention Association
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