The Critical Importance of Risk Management in Event Management

This essay underscores the vital role of risk management in event planning, emphasizing its necessity for identifying, managing, and minimizing potential risks to ensure successful event execution. It highlights various reasons for risk occurrence, including power failures, medical emergencies, and sudden sponsorship withdrawals, necessitating comprehensive contingency plans. Effective risk management spans all event production phases, addressing human resources, marketing, finance, security, and information management. Proper risk identification and management maximize profits and minimize unproductive expenses, enabling leaders to prioritize tasks based on outcomes. Furthermore, timely risk management not only minimizes threats but also facilitates project success evaluation, allowing for the application of effective strategies in future projects and capitalizing on organizational strengths. The development of targeted training programs enhances team expertise and mitigates specific risks, demonstrating proactive preparedness in risk management.

Running head: IMPORTANCE OF RISK MANAGEMENT
IMPORTANCE OF RISK MANAGEMENT
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1IMPORTANCE OF RISK MANAGEMENT
For any kind of event, preparing a risk management plan is essential. This helps to
identify and manage the risk as well as minimise its effects on the events or the visitors. By
planning for unexpected incidents effective responses can be arisen successful event
managers recognise the importance of risk management as the goals of the events largely
depends on planning, preparation, result and evaluation which contribute to achieve the
strategic goals.
According to Hopkin (2017), there are various reason for which the risks may arise
and affect the events. These are power failure, medical emergency, equipment failure, fire,
brawl, stampede, sudden sponsorship withdrawal and last minute rejection by artist.
Therefore, the managers of an event need to be prepared to face all these contingencies with a
well thought out and efficient risk management plan. To Ho et al., (2015), similarly there are
some risks related to the human resource, marketing, finance, quality management, food and
beverages management, attendees, programs, infrastructure, logistic, technical management,
team management and procurement.
According to Glendon and McKenna (2016), risk management must be done at every
phase of the event production. As an example, it can be stated that the managers when
identify the risks in particularly information management field, this deals with the risks loss
of data for data theft and hard disk crash. On the other hand, risks can be identified in security
management field, where it deals with stampede, affray, medical emergency and accidental
fire.
Proper identification and managing them leads to minimizing as well as eliminating
all type of risks in the events. In case the managers fail to prepare the risk management plans
properly, their projects get unprotected to various types of problems therefore become more
vulnerable to the external forces. This is the reason why proper identification and

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management to face the risk is needed. This efficiency allows the event company to
maximize their profits in one hand and minimize their expenses on the activities which do not
produce any return on the investment. By means of a detailed analysis, the effective leaders
can prioritize their ongoing works based on outcomes produced, in spite of having any odds.
To McNeil, Frey and Embrechts (2015), the importance of identifying risks and
managing them on time is not only focussed on the minimising their risks but helps the
mangers to evaluate their projects’ success. By evaluating the project’s success, the mangers
can apply them in their next project. They can assess that impacts of their actions on
mitigating the exposure to the problem is then exploit the opportunities which will capitalise
on the company’s strengths. For example, the proves of developing a training program
focussing on the internet security will enhance the expertise of the team members thus reduce
the risks of the internet related issues in an event. Through this type of preparedness to the
identification of the risks, the mangers can be capable to manage these risks more
appropriately and in no time.

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References:
Glendon, A. I., Clarke, S., & McKenna, E. (2016). Human safety and risk management. Crc
Press.
Ho, W., Zheng, T., Yildiz, H., & Talluri, S. (2015). Supply chain risk management: a
literature review. International Journal of Production Research, 53(16), 5031-5069.
Hopkin, P. (2017). Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers.
McNeil, A. J., Frey, R., & Embrechts, P. (2015). Quantitative risk management: Concepts,
techniques and tools. Princeton university press.