CEM4104 - Lecture 1
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This document provides an overview and agenda for a lecture on event risk management. It introduces the course objectives, which are to identify threats to events, comply with regulations to control liabilities, and develop ethical management procedures. The document outlines the lecture topics, administration details, and provides definitions and examples of key concepts like risk, risk management, legal frameworks, duty of care, trademarks, and logos. It also includes a case study about a bomb threat at a school music concert.
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Lecture 4Evaluation and Mitigation of RisksCrucial considera.docx
Lecture 4
Evaluation and Mitigation of Risks
Crucial considerations for your new business venture
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You & your business idea
Market segments & value proposition
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This week: operations plan and strategy
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Identifying, Estimating & Mitigating Risk
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“The possibility that an event will occur and adversely affect the achievement of objectives.”
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What if?
Micro / macro
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Identifying, Estimating & Mitigating Risk
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Strengths, Weaknesses, Opportunities, Threats
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Entrepreneurs need to do more strategic analysis than a simple SWOT.
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See VLE for local government example
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Use Porter’s Five Forces to assess where risks may arise in the sector.
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Market segments & value proposition
Marketing Strategy
Operations plan
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Financial plan
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Identifying, Estimating & Mitigating Risk
Legal foundations, Regulatory, and Professional Considerations
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External (e.g. economic trends, regulations, competition)
Internal (e.g. people, process, infrastructure).
“Identifying, managing, and exploiting risk across an organization has become increasingly important to the success and longevity of any business.”
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Strengths, Weaknesses, Opportunities, Threats
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SWOT gets over-used as a substitute for real strategic analysis. Don’t over-rely on it.
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1
You & your business idea
Market segments & value proposition
Marketing Strategy
Operations plan
Risk &
strategic options
Financial plan
Resources available
Resources needed
New Venture Creation
Framework
(Burns, 2014)
Last weeks lecture and the first seminar – market segments, value proposition and marketing strategy
This week: operations plan and strategy
2
Lecture Outline
Identifying, Estimating & Mitigating Risk
Legal foundations, Regulatory, and Professional Considerations
People
Definition of Risk
“The possibility that an event will occur and adversely affect the achievement of objectives.”
External (e.g. economic trends, regulations, competition)
Internal (e.g. people, process, infrastructure).
“Identifying, managing, and exploiting risk across an organization has become increasingly important to the success and longevity of any business.”
(PWC, 2008:5)
What if…?
What if?
Micro / macro
5
Identifying, Estimating & Mitigating Risk
The biggest risk…
Successful entrepreneurs are calculated risk takers, not gamblers!!!
SWOT should help...
Strengths, Weaknesses, Opportunities, Threats
But SWOT is not so much a tool for analysis as a set of headings for organising the information garnered from your analysis.
SWOT gets over-used as a substitute for real strategic analysis. Don’t over-rely on it.
Entrepreneurs need to do more strategic analysis than a simple SWOT.
Macro-Environment Analysis - Assessing the Business environment with PESTEL
10
Political -Government stability -Tax policy -Foreign trade regulations- Social welfare policies – EU expansion
Economic - Business cycles - GNP trends - Interest rates - Money supply – Inflation – Unemployment - Disposable income
Sociocultural - Population demographics - Income distribution - Social mobility - Lifestyle changes - Attitudes to work and leisure – Consumerism - Levels of education - Fashion
Technological - Government spending on research - Government and industry focus on technological effort - New discoveries /developments - Speed of technology transfer - Rates of obsolescence
Environmental
Environmental protection laws - Waste disposal - Energy consumption – food miles/campaigns
Legal - Competition law - Employment law - Health and safety - Product safety
NB PRIORITISE
See VLE for local government example
Industry/Sector Analysis
Michael Porter gives us a useful tool to analyse the relationship between competitors, suppliers and the market…
Use Porter’s Five Forces to assess where risks may arise in the sector.
Porter’s (1980) Five Forces
Which risks matter?
Legal obligations
Ethical responsibilities
Threats that undermine your values
Threats to viability, reputation or commercial success
Threats to long-term sustainability
Different types of risk
Strategic risk (e.g.
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Online ethics training programs have become critical to many organization’s compliance and risk management strategies. Legal mandates over the past decade have significantly reduced fines and penalties for organizations that train employees on their Code. The regulatory environment continues intensify, demanding increased accountability and transparency from employers.
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16. entr lesson 11
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marketing with responsibilty assignment
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