Risk Management - Domain C - 8 Questions Flashcards
Risk Management
- Ongoing process of assessing risks that may threaten attendees, the meeting or event itself, the organizer, partners, suppliers - and how to manage the probability and consequences of such risks.
- applies to things like natural disasters, political unrest, assault on persons, building collapses, power outages etc.
4 Basic Stages of Risk Management
- Preparedness
- Response
- Recovery
- Mitigation
Manage Risk Management Plan - Identify Risks
- Risk Assessment or Risk Identification - identifies the risks specific to the destination, meeting or event being planned
- create a list of all risks associated
- FIRST step in the 4 step risk management process
- Risk Assessment (identify risk)
- Risk Analysis (analyze risk)
- Crisis Planning (develop risk management plan)
- Crisis Response (implementing the planned responses to specific crises)
- you could also use a SWOT analysis (strengths and weaknesses are internal, and opportunities and threats are external), will be able to give you a similar result regarding risks, and also start talking about MITIGATING = (RISK ANALYSIS STAGE)
International Organization for Standardizations (ISO)
National Fire Protection Association (NFPA)
Combine threats into 3 categories:
example: (Hotel Fire)
1. Natural Disasters (Lightning Strike)
- Human-caused (Arson)
- Technological (Electrical Fire)
Due Diligence
Reasonable Prudent Person Standard
Negligence
Due Diligence - did the event professional do the necessary research and planning - accommodations? vendors? transportation?
- This standard is related to the Reasonable Prudent Person Standard - asks, "Did the event professional do what a reasonably prudent event professional with similar experience and training do under the same circumstances?
Negligence - failure to use due care
Analyze Risks
To begin this process, must examine damage, loss, liability exposure, potential, and timing
3 CHOICES WHEN FACING RISK:
- Accept/Ignore the risk
- most likely the probability of the risk is very small or consequences would be small
- Manage/Mitigate the risk (which includes transferring the risk to someone else, like insurance or contracts)
- high probability of occurring, or significant potential consequences
- Avoid the risk - have both a high probability of occurring and high consequences if they do occur
- event professional must decide whether the risk is worth spending limited time and resources on to accept/ignore, manage/mitigate or avoid
Manage/Mitigate Risks
- Reduce probability that crisis will occur
- Reduce consequences if crisis does occur
- Transfer all or some of the risk to another party
Examples: develop and implement a risk management plan, hiring security, purchasing insurance, use of experts to manage specific risks, THOROUGH professional planning
Contract Clauses - Manage/Mitigate Risks
Indemnification - clause in contracts that set out to protect one party from liability if a third-party or third entity is harmed in any way. It’s a clause that contractually obligates one party to compensate another party for losses or damages that have occurred or could occur in the future.
- a contract by which one engages to save another from a legal consequence of the conduct of one of the parties, or of some other person.
Attrition -
Cancellation -
Force Majeure -
Waiver of Liability - legal document signed by person participating that verifies acknowledgement and assumption of risks involved.
Develop Management/Implementation Plan
Plan to include:
- Chain of command
- Emergency and Control Procedures
- Spokesperson - the meeting professional should know who the point of contact is in the event of an emergency?
- Implementation Strategies
Event Insurance
Commercial General Liability (Public)
Umbrella Policies - insurance that covers gaps in coverage under the primary insurance policies
Fire Liability
Medical Liability
Independent Contractor Liability
Products Liability/host and alcohol liability
Additional Insured
Valuable papers and records
On-site Office
Non-appearance
Event Cancellation
Property Damage
Travel Insurance
Worker’s Comp
Emergency Response Plan - must be monitored and updated on an ongoing basis
- should be created for potential emergencies, crises, disasters - GROUP RESPONSE PLANS BY TYPE OF RESPONSE
Threat Assessment - the process of assessing threats to people, property, the organization, the meeting, or any other at-risk elements identified during the risk assessment
Capability Assessment - the POSITIVE risk-reducing aspects of the meeting components. Things that are already in place that may assist in an emergency response
ex. fire extinguishers, sprinkler system, AEDs, security, trained staff
- MUST CONFER WITH PROPER FACILITY AND DESTINATION AUTHORITES ABOUT:
- venue access, venue info (alarms, evacuation routes etc., on-site/off-site medical care, communication)
Contingency Plans
- These should be created in the event that a meeting or event ahs to be postponed, cancelled, relocated, or significantly modified due to an emergency, crisis, or disaster.
- create in advance!
- must have a clear activation indicator = At what point do we implement Plan B?!, and tie indicators to specific defined measures!
Types of Security - must be well informed and well trained
- Contracted = outside company is hired to provide uniformed or non-uniformed security
- Law Enforcement = On- or Off-Duty officers, uniformed or plain clothes
- Peer = Trained security that are of similar age/appearance , and are usually dressed like attendees
- Personal = “Bodyguards” - assigned to one person or a small group of people
- Proprietary = Security employed by a venue, company, or organization with a defined scope or responsibility
- Volunteer = unpaid, with a variety of responsibilities
