How to manage risk in events’organization? Master 2 – Hospitality Management Florie THIELIN & Junfeng ZUO October 2009

Introduction What is the risk management ? “ Risk management is the way in which uncertainties are properly identified , judiciously analyzed , and pertinently responded so that they will have the best chance of a beneficial outcome and the least chance of a detrimental one.” Event manager is a risk manager also. Company Logo

What is the risk management ?

“ Risk management is the way in which uncertainties are properly identified , judiciously analyzed , and pertinently responded so that they will have the best chance of a beneficial outcome and the least chance of a detrimental one.”

Event manager is a risk manager also.

The Risk Management Process Company Logo How to identify risk? 1 How to analyze risk? 2 How to respond to risk? 3

1. Identify risk - Techniques Company Logo Look at past experiences Interview the stakeholders Simulation Forecasting SWOT Analysis

1. Identify risk - Phases Company Logo Risk management : An integrated, iterative and ongoing process In which everyone is concerned. Source : “Risk management for meetings and events”, Julia Rutherford Silvers, 2008

Risk management :

An integrated, iterative and ongoing process

In which everyone is concerned.

1. Identify risk - Characteristics Company Logo Physical 4 aspects to identify Financial Legal Ethical or moral

2. Analyze risk - Matrix Company Logo Probability Consequence High Low Mild Severe Risks identified : Bad Weather Music band does not come Not enough customers Mosquito invasion Control 1 2 3 4

Risks identified :

Bad Weather

Music band does not come

Not enough customers

Mosquito invasion

2. Analyze risk – Risk Level Company Logo Routine procedure Specific monitoring procedure Action High 3 Moderate 2 Low 1

3. Respond to risk - Options Company Logo Insurances Reducing probability or impact Change Retain the risk No solution Transfer the risk Control the risk Avoid the risk

3. Respond to risk - Method Company Logo Evaluate the possible responses Select the best response (costs/consequences) Implement it What ? When ? Who ?

To conclude – Do not forget Company Logo

Thank you so much indeed !

Ressources Company Logo Book : “ Risk management for meetings and events”, Julia Rutherford Silvers, 2008 “ Professional event coordination ”, Julia Rutherford Silvers, 2004 Internet : http://www.liberation.fr/culture/0101579345-francofolies-la-deprogrammation-du-rappeur-orelsan-fait-du-bruit http://www.lemonde.fr/culture/article/2009/07/14/deprogramme-aux-francofolies-orelsan-demande-l-arbitrage-du-ministre-de-la-culture_1218522_3246.html http://tf1.lci.fr/infos/france/societe/0,,4470739,00-orelsan-denonce-une-deprogrammation-injustifiee-.html http://www.riskmanagement.qld.gov.au http://www.ourcommunity.com.au/insurance/insurance_main.jsp http://www.ozco.gov.au/arts_resources/other/risk_management_and_insurance_for_arts_enterprises/files/2131/risk_management%202004.pdf

To conclude – Debate Company Logo Study case : Cancellation of Orlesan - Francofolies 2009 This rapper wrote rude lyrics in one song (Sale Pute). He should be programmed for the festival (without singing this specific song), but was canceled by the organization a few days before. Gerard Pont, the organizer manager reacts on the radio .

To conclude – Debate Company Logo

To conclude – Debate Company Logo Study case : Cancellation of Orlesan - Francofolies 2009 Which risk could you identify with ? What risk level do you analyze ? What response would you apply ? Would you say the final mediatic buzz is positive or not for the Francofolies reputation ? Why ?

Which risk could you identify with ?

What risk level do you analyze ?

What response would you apply ?

Would you say the final mediatic buzz is positive or not for the Francofolies reputation ? Why ?