How to manage risk in events’organization? Master 2 – Hospitality Management Florie THIELIN & Junfeng ZUO October 2009
Introduction <ul><li>What is the risk management ? </li></ul><ul><li>“ 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.” </li></ul><ul><li>Event manager is a risk manager also. </li></ul>Company Logo
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 <ul><li>Risk management : </li></ul><ul><li>An integrated, iterative and ongoing process </li></ul><ul><li>In which everyone is concerned. </li></ul>Source : “Risk management for meetings and events”, Julia Rutherford Silvers, 2008
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 <ul><li>Risks identified : </li></ul><ul><li>Bad Weather </li></ul><ul><li>Music band does not come </li></ul><ul><li>Not enough customers </li></ul><ul><li>Mosquito invasion </li></ul>Control 1 2 3 4
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 ?
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 Study case : Cancellation of Orlesan - Francofolies 2009 <ul><li>Which risk could you identify with ? </li></ul><ul><li>What risk level do you analyze ? </li></ul><ul><li>What response would you apply ? </li></ul><ul><li>Would you say the final mediatic buzz is positive or not for the Francofolies reputation ? Why ? </li></ul>
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