Assessing Financial and Organizational Risks in Event Management

This report delves into the complexities of managing risks during event planning, highlighting key areas such as financial, organizational, environmental, and operational challenges. By leveraging data from recent publications, it outlines a comprehensive Risk Action Plan aimed at identifying and mitigating significant risks through strategies like avoidance, mitigation, acceptance, or transfer. The focus is on ensuring safety measures, proper process planning, and emergency preparedness to handle unexpected scenarios such as an increase in guest numbers. It also examines residual risks, offering guidance on preparing for unforeseen demands during large-scale conferences. By incorporating insights from various studies, the report provides actionable recommendations for event managers to improve operational performance and risk management.

Risk Management Plan

Table of Contents
INTRODUCTION...........................................................................................................................1
RISK MANAGEMNT CONTROLS...............................................................................................1
RISK ACTION PLAN.....................................................................................................................5
RESIDUAL RISK............................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
A risk is an occasion or condition that, assuming it happens, could affect the objectives or goals. Risk Management is the most
common way of distinguishing, evaluating, answering, checking, and detailing risks (Allen and et. al., 2022). This Risk Management
Plan characterizes how dangers related with the project will be recognized, examined, and brought down. It frames how risk managing
exercises will be performed, recorded, and observed all through the lifecycle of the project and gives templates and practices to
recording and focusing on risks.
RISK MANAGEMNT CONTROLS
Risk management control will imply the key stakeholders, project partners, teams, and will incorporate an assessment of other
elements, corporate culture and the task the management plans including the vision of project (Brynildsen and Parent, 2021). Cautious
consideration will be given to the venture expectations, suppositions, imperatives, WBS, cost/exertion gauges, asset plan, and other
key task reports.
Event Name: Venue:
Date: PAX: Risk Management Controls for Event
Category
(Risk/
Hazard)
Description Likelihood
Rating
Consequence
Rating
Equals
what level
of risk
Controls to
minimise
risk
Updated
level of
Consequenc
e
Who is
responsible
to Manage/
Monitor
Reputation
Risk
Reputational risk is a
danger or risk to the
great name or remaining
Low chances
due to the
effective
Extremely
high
consequence
Moderate/
Medium
Managing
the activities
of the
Low -
Moderate
Event
manager/
organiser
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of an enterprise or
business. Reputational
chance can happen in
the accompanying ways:
Directly, as the
consequence of the
activities of the
organization. Indirect
ways, because of the
activities of a
representative or
workers.
measures
taken by the
organisation.
as it may
lower down
the brand
image of the
company.
business as
well as
effectively
manage the
activities of
employees.
Financial Monetary risk is a
general classification for
various sorts of risks or
hazards as there is more
than one way a business
or a speculation can lose
finances unnecessarily
(Nadda, Arnott and
Sealy eds., 2020).
High because
Events always
have
uncertainty
regarding the
requirement of
finances.
High chances
of losses or
lower profits.
High Adequacy of
finance,
budget
control,
proper fund
allocation
and
utilisation.
Low Finance
managers
Operational An operational risk in Moderate High losses Moderate Operational Low Operations
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an event is unanimous
incident that has caused
or can possibly make
damages to physical or
intellectual property
with different
occurrences.
Operational risks in the
events are related with
individuals, cycle and
innovation engaged with
their products and
services.
chances to
occur because
of safety and
security
measures
followed.
due to losses
of property
and lives may
occur.
risks can be
minimised
by adequate
safety
measures,
guidelines,
etc.
Managers
and
executives
Physical This is the threat/ risk
that the firm or
association is influenced
or endures misfortune as
consequence of a
physical hazard
influencing a section (or
entire) of the company's
infrastructure or tasks.
Low chances
due to the less
likely
happenings by
humans and
low chances of
natural
disasters to
occur.
High
Consequences
that may
disrupt the
activities of
the company
for long
duration.
Moderate Preparing
for
hazardous
events like
fire safety,
disaster
management
to control
the losses.
Low Event
Manageme
nt
Organisati
on
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The physical event can
occur due to natural or a
man-made consequence
(either purposeful or
coincidental).
Chemical Risky chemical
compounds are
substances that can
cause antagonistic
wellbeing impacts like
food poisoning,
breathing issues,
hypersensitive
responses, allergy, and
other medical conditions
from openness to
chemical risks in the
events (Mair and
Weber, 2019).
Low chances
to occur
because of low
rates of such
issues.
Highly affects
the brand
name,
because it
risks the lives
of people.
Low -
Moderate
Maintaining
food safety
standards,
minimising
the supply of
drinks,
checking
allergens etc.
Low Food
Safety
Manager,
Head Chef
and staff
members
Residual Residual risks are the
gamble that remaining
parts after endeavours to
Low because
there are many
preparations in
High because
it may affect
the activities
Moderate Keeping
sufficient
arrangement
Low Event
manageme
nt
4

recognize and kill some
or a wide range of
chance have been made.
Residual Risk is
significant in light of
multiple factors. First to
consider is that residual
risk is the gamble "left
finished" after security
controls and handle
enhancements have
been applied.
advance to
imitate such
risks.
adversely. s made for
the people,
workforce
and event
finances.
coordinator
RISK ACTION PLAN
Each significant risk (those falling in the high and moderates) will be doled out to a manager for checking to guarantee that the
risk won't "escape their eyes". For every significant risk, one of the accompanying methodologies will be chosen to address it:
 Avoid: Dispose of the danger by killing the reason (Arnott, 2020)
 Mitigate: Identify ways of diminishing the likelihood or the effect of the gamble
 Accept: Nothing will be finished
 Transfer: Make another party liable for the gamble (purchase protection, re-appropriating, and so on.)
For each risk that will be alleviated, the task group will recognize ways of keeping the risk from happening or decrease its effect
or likelihood of happening. This might incorporate prototyping, adding errands to the task plan, adding assets, and so on. For each
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significant gamble that will be moderated or that is acknowledged, a strategy will be framed for the occasion that the risk emerges to
limit its effect.
Response Strategy Mitigate
Risk Operational Risk
Summary An operational risk in an event is unanimous incident that has caused or can possibly make damages
to physical or intellectual property with different occurrences. Operational risks in the events are
related with individuals, cycle and innovation engaged with their products and services.
Proposed Actions Operational risks can be minimised by adequate safety measures, proper process planning, standard
operations, guidelines, risk alleviation plans, safety and security measures, preparing the workforce
to handle dynamic situations, resolve conflicts etc.
Resources Required Effective and efficient operations processes, assets that supports processes, skilled workforce,
experienced professionals, fire extinguishers to reduce risks, etc.
Person Responsible Operations Manager
Timing One week
Reporting/ Monitoring Employees and the operations managers
Additional Information This mitigation plan could help to identify the causes of issues in the operational performance and
improve them.
RESIDUAL RISK
Residual risk, the risk taken into consideration but can never totally control
Residual Risk Chosen: Extra Guests
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Details of the risk Rise in the number of people for the conference than total estimated count may increase the burden
on the event management teams (Thomas and Stephens, 2022). The proper arrangements of extra
seating space, extra parking areas, food availability and prepared workforce to fulfil the demands of
clients.
Risk identification Preparing for such situations like increase in number of guests may lead to residual risk.
Monitor and prepare Making additional seating space, monitoring food requirements, extra parking space, etc.
Strategies Risk Mitigation
CONCLUSION
The following report has been demonstrating various risks that may occur during an event and the ways these can be alleviated.
The various types of risks have been discussed and it has been obtained that various aspects must be considered for overcoming such
risks or hazards during an event planning.
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REFERENCES
Books and Journals
Allen, J. and et. al., 2022. Festival and special event management. John Wiley & Sons.
Arnott, I., 2020. Risk Managment in Events Management. In Legal, Safety, and Environmental Challenges for Event Management:
Emerging Research and Opportunities (pp. 1-20). IGI Global.
Brynildsen, K.B. and Parent, M.M., 2021. Test Events As Risk Management Tools in the Context of the Olympic Movement's Agenda
2020. Event Management, 25(2), pp.115-133.
Mair, J. and Weber, K., 2019. Event and festival research: A review and research directions. International Journal of Event and
Festival Management.
Nadda, V., Arnott, I. and Sealy, W. eds., 2020. Legal, Safety, and Environmental Challenges for Event Management: Emerging
Research and Opportunities: Emerging Research and Opportunities.
Thomas, K. and Stephens, S., 2022. Understanding the Management Theory in Event Management: A Conceptual
Framework. Available at SSRN 4051469.
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