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 |
|
|
|
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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.
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