Risk Management Plan for Events

An event is full of uncertainties like power failure, equipment failure, medical emergency, brawl, stampede, fire, sponsorship withdrawal, last minute turned down by an artist etc. How will you deal with all these contingencies without a well thought out risk management plan.


Risk management is done at each and every stage of event production. For e.g. when risk management is done in the information management field, then it deals with loss of data due to data theft or hard disk crash. When risk management is done in the security management field, then it deals with brawl, stampede, medical emergency, accidental fire etc.


Similarly there are risks associated with: human resource, finance, marketing, quality management, attendees, food and beverages management, programs, technical management, infrastructure, logistic, procurement and team management.


Developing Risk Management Plan for Events

Since risk management is a very important part of event management therefore it should be carried out in a planned and professional manner. Following steps are involved in risk management:
Step 1: Identify those elements or activities which could carry a risk.
A list of such elements is already specified above like information management, security, procurement etc.
Step 2: Identify the risks associated with each element or activity.
For e.g. cargo theft is associated with logistic management. Similarly, data loss is associated with information management.
Step 3: Determine the possibility of occurrence of the risk and the severity of the consequences if the risk does happen. For e.g.


Elements Risk Possibility Severity
Information Management Loss of data Low Very high
Data theft High High
Data Corruption Very high Very high
Security Management Brawl Low Low


Step 4: Risk Prioritization
Risks with high severity of the consequences should be handled first.


Step 5: Formulate, prepare and implement strategies to manage risks.

Some common strategies used for risk management are:


*Risk Avoidance
Avoid those elements and activities which could carry a risk.


*Risk Retention
Accept some or all the consequences associated with a particular risk.

*Risk Transfer
Transfer the risk to a third party. For e.g. transferring the event security responsibility to a security agency.


*Risk Reduction
Reduce the risk associated with a particular element or activity by developing an effective contingency action plan.

Step 6: Monitor the risks periodically
so that the strategies used to manage the risks can be updated or reviewed.