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.