Detailed Risk Assessment and Management Report: Moomba Festival

This report provides a comprehensive analysis of risk management strategies applied to the Moomba Festival. It begins by defining risk and outlining the risk management process, including framework development, risk identification, analysis, response planning, and review. The report distinguishes between strategic and operational risks, particularly focusing on uncertainties associated with the festival. The report also details various risk management methods such as risk evaluation using a probability and impact matrix, and situation analysis, including PEST and SWOT analyses. It examines how these tools help in identifying political, economic, social, and technological factors that influence the event. The report emphasizes the importance of proactive measures, such as insurance and contingency plans, to mitigate potential negative impacts and ensure the festival's continued success, highlighting the application of these strategies to protect financial, human, and tangible resources.

RISK MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Risk is the potentiality of occurring a factor which may have negative and positive effect
upon an event from meeting its aim and objectives and risk management is taking an appropriate
action in advance to prevent the event from uncertainties. Risk management is a process of
recognition, analysis and acceptation or mitigation of uncertainty in management of finance,
human, tangible and intangible resources. Risk management is a tool that enables management
to take action before occurring situation in organisation (Risk Management, 2018). This essay is
based upon Moomba Festival which is to be held in South Australia in month of March. This
event comprises so many events and conferences related to sections. This fate is 64 years old but
maintains its objective and prosperity. This report is based upon risk management of Moomba
Festival.
TASK
There are two types of risk, one is strategy driver and other is operational risk. Strategic risk
includes market drivers, technologies, regulatory and macro environment risk etc. On the other
hand, operational risk factors are financial, security, people related and business process risk.
Uncertainties which are related to Moomba Festivals are a part of strategical risk (McNeil, Frey
and Embrechts, 2015).
Measurement and management of risk is not an easy task as it contains some specific
steps which are explained as beneath:
(Source: Risk Management, 2018)
In the very first step, a proper framework should be decide so that all future possibilities
could be predicted and managed accordingly. If event manager plans all uncertainties like this
Illustration 1: Risk Management, 2018

festival is getting attraction of many people and becoming popular on year basis then to hamper
all services and facilities could be removed.
Risk Identification is a next step and in this section all factors should be analysed in order
to measure kind of risk that may have some positive and negative influences. For example, future
risk could be recognised by taking past year's data into consideration and probability of
occurring a situation along with its impact upon business Activities of Moomba Festivals.
Once risk is identified then it is to be analysed that what is the type of risk and how it
could be managed by eliminating, reducing, transferring and distributing risk factor. By taking
aid of this evaluation, event manager can find out relevant solutions also according to the type of
risk (Bessis, 2015).
Risk response plan is next phase of risk management process, this stage includes how an
organiser retaliate upon a risk factor and what will be the corrective actions in order to manager
risk in Moomba Festival. For example, if any other event is taking place on the same time and it
has its impact on festival by reducing visitor so response plan for this condition is that how
organisation can make their Activities more attractive in order to fascinate more audiences in
festival.
Other phase is that once association is decided to popularise their Activities then action
plan would be made like addition of some more human activity like additional events of music
like concerts with popular singers etc. Once this plan is ready then it is clear that all actions and
task would get examine so that efficiency could be measure for make some improvisations in
corporation.
After analysing all previous stages, review will be constructed so that all necessary
decision could be made. These reviews could be get from possible and potential audiences whom
are regular visitor of Moomba Festival.
There are some methods that can manage risk factors in events. Evaluation of risk is a
quite prominent actions because this activity takes corrective decision upon a future occurrence
which may have negative effect upon business operations of an event. There is a diagram which
can evaluate risk in most appropriate manner (Cardona, 2013).

Low ProbabilityLow Probability
&&
High ImpactHigh Impact
High ProbabilityHigh Probability
&&
High ImpactHigh Impact
Low ProbabilityLow Probability
&&
Low ImpactLow Impact
High ProbabilityHigh Probability
&&
High ImpactHigh Impact
Above table is illustrates the factors of probability of occurring a situation in market and what
will be its effect in business operations of Moomba event. There are some situations that are
have different possibilities which are explained as beneath:
Probability of occurring a situation is low but its effect is high then it is required from
organisers that they establish efficient forecast tools and then take curable actions in order to
minimise lower effect and to maximise positive effect on a serious note.
When probability of happening an event is high and its impact on operational Activities is
also high then all situations and its negative and possible effects should be measured in advance
so that losses could be eliminated from event happening. This is a most critical format of risk
management where chances of negative effects are also high along with positive impacts.
Other situation is when chances of happening an event is low which may have negative
and positive influences and along with this impact of this situations is also low then organisers of
event can ignore this condition as it contains low risk factor (Hull, 2012).
Last but not the least, other situation is when chances of happening a situation is high but
its impact on association is low then in this type of occurrence, management of event does need
to make any prior decisions.
This tool is applicable in Moomba Festival also because this fate is running from past 64
years and it is a pressurise thing that all prestige and prosperity of event should be maintain for
further success of event. By applying this tools organisers can predict all possible situations
which would have some influences upon Activities of program. When all situations is forecasted
very efficiently then other step is to measure all impacts upon Activities in order to maintain
efficiency of function. When situation is analysed and some possible results is found then event

organisers can manage their all human resource like how many staff members are needed and
what will be seating arrangement, how efficient services would be for all those days in which
event would take place. For example, in context of Moomba Festival, all of sudden number of
visitors became high then this situation will lead to sabotage of resources. This is understood
with an accurate example like if expectation of numbers of visitors are one million but crowd has
exceed then all management which is prepared for expected number of visitors but now things
has been changed and it will result into necessity of more resources like human, tangible and
intangible. To protect all these things, it is required from managers that they predict all situations
in most appropriate manner so that this type of hampering could be eliminated.
This tool is applicable in following manner in some extent (Cole and et. al., 2013).
Main objective of applying this situation analysis risk management tools is to prevent
event from uncertainty but if this could not be done then at least risk factor could be reduced. If
risk factor could not be diminish and eliminate then it requires transfer of risk by taking help of
some tools like insurance and outsourcing. In insurance, organisers can take financial protection
against any uncertainty in order to protect and maintain adequacy of program. If there is no
chance left other than accepting risk factor then there are many plans for contingencies for
managing risk so that all resources could not be sabotage or hampered. Rather than this,
predicted uncertainties could be diversified like some actions are allotted to human resource
department for examples keeping all assets of Moomba Festival safe and always keep some extra
asset for dealing over crowd. All services should have some backups so that situation of
mismanagement could not be happen in festival (Christoffersen, 2012).

(Source: Risk Management, 2018)
There are some other methods that can be taken for managing all risk factors and method
is illustrated as beneath:
Situation analysis is an other mode of managing risk. This is a systematic and evaluation
method which analyses past and present technological, political, economical and social factors
which have some major and minor effects upon event happening (Situational Analysi, 2018).
This analysis is done to identify risk factors that are having their impact on event happening.
Main aim of making this analysis is recognition of intrinsic and extrinsic elements which are
having effects upon some resources like financial, human, assets for example tangible and
intangible. Other objective is evaluation of festival's present and future strengthen, weaknesses,
opportunities and threats. This could be done by taking help of PEST/SWOT analysis. There are
various factors which are linked with some risk extent and has capabilities of sabotaging
happiness and prosperity of function and these elements are explained as follows:
Political Factors: If there is any single change in political and governmental factors then
it will effect operations of event in positive or negative manner. If government made some laws
regarding environment like strict regulation upon excess of pollution, discharge of wastage water
in river is could not done then it will hamper clearance of waste material widely.
Economical Factor: If economic condition of any country is not strong then it can not
organise any event or on the other hand if economy of nation is strong then handling a function
capacity is strong (Aebi, Sabato and Schmid, 2012).

Social Factors: This section includes some aspects like lifestyle, income level, traditions,
fashion, taste, preference, beliefs etc. When any changes occurs in these elements then this
section can hamper association's working quality and functionality. Here is change in belief of
population is a risk because it can be change in any time and this situation can lead events to
make some revulsions like theme of event.
Technologies: There are any techniques that are used in term of serving all audiences
whom are using as swings for example, Ali Baba, alpine slide, booster etc. These are instances of
technologies that made happening an event is more enjoyable not only for kids but adults also. If
changes are sudden then it would be consider as risk factor because if these permutations are not
involved in festival then this action will hamper image of Moomba Festival in Australia (Lam,
2014).
As Moomba Festival is very prominent fate in Australia and keep maintaining their
prestige and prosperity by accepting and managing all risk and are able in protecting their
human, financial and intangible & tangible resources. This festival takes place near of a river and
if government made the law that water of river should not be hamper in any case and if it
happens then it will be a chargeable offences for event organisers. Making of this sudden change
in rules and regulation has its impact on accomplishment of Moomba festival. On the other hand,
economic conditions of Australia is quite strong and then government can organise any event and
functions on large scale. If economy gets change and recession will come then this is a hard
situation and this situation effects financial capacity of Moomba Festival. If people are getting
bore with same type of activities then it is requirement of situation that can change theme and
can make some addition and reduction in events. When this situation carries then it will make
some changes in technologies and requirement of techniques will hamper functionality of
Moomba Festivals. Whether more technologies are required or event management need to stop
out some technologies in critical situations of economies.

(Sources: PEST Analysis, 2018)
Other part of situation analysis is SWOT analysis which is to be considered as an
important tool in which corporation can analyse how much efficiency it has in order to manage
and retaliate risk factor so that working adequacy could not get hamper and main motto of
starting event or company which is profit making could be maintained. SWOT analysis provides
information regarding internal and external situation analysis of given event which is Moomba
Festival. Below are some points which would be included in TOWS matrix.
Strengths are related with core competencies of event like if activities that are taking
place in function are very popular and happening then it will fascinate more number of people as
audience. Providing best quality services along with fun of enjoying various human events are
strength of Moomba festival and people know that attending this festival is a stress buster then it
attracts more visitors (SWOT Analysis and PEST Analysis, 2018). This is a tool which is quite
prominent and is a reason of success of event since past 64 years.
Weakness of Festival organisers are not able in retaliating change that are occurring in
surrounding market of function. For example, if there is a possibility of happening change in any
factor like taste of customers, political policies of country etc. Then all these variations should be
attended and predicted in most appropriate manner so that it should corrective action should be
taken which could reduce, diminish transfer and diversify risk so that positive results could get.
Illustration 3: PEST Analysis, 2018

Opportunities for Moomba festivals are making some extra dose of entertainment so that
not young people but also children and adult population could get attracted towards festival. If
there is any activity which is related with music and concert then age group of 30-50 years can
also take interest into Moomba festival. This action is helpful in fascinating more number of
audiences who will bring more earnings with them and them ultimately efficiency and
attractiveness could be get and then maintain.
Threat for Moomba fate is that if any other event is happening in and Near with Australia
then it will diversify audience whom are having same interest in Moomba fate and other event
that is happening with same time. To reduce this thing, event organiser can make this event more
colourful and joyful and should also starts new activities for all age group people so that
association could manage all risk that are related with clashing of event dates.
Above analysis is based on situations that are occurring in market place and having
prominent impact whether positive or n4egative impact on functionality of event. By taking help
of situation analysis, event manager can monitor all risk factors that are related with functionality
and main objective of doing this to protecting human resource along with providing security to
tangible and intangible assets by making proper decision upon financial analysis (Sodhi, Son and
Tang, 2012).
CONCLUSION
This report is concluded as that risk management is a tool that is done for preventing
future action from uncertain activities so that functionality of operational actions could not get
hamper. To measure and evaluate risk, there is a process that contains some steps which should
be followed for analysis all positive and negative effects of risky factor. There are some tools
that are helpful in analysing and managing risk in corporation like risk evaluation tool along with
situational analysis that is a combination of two parts. One is PEST analysis and other is SWOT
study.

REFERENCES
Books & Journal
Aebi, V., Sabato, G. and Schmid, M., 2012. Risk management, corporate governance, and bank
performance in the financial crisis. Journal of Banking & Finance. 36(12). pp.3213-
3226.
Bessis, J., 2015. Risk management in banking. John Wiley & Sons.
Cardona, O. D., 2013. The need for rethinking the concepts of vulnerability and risk from a
holistic perspective: a necessary review and criticism for effective risk management.
In Mapping vulnerability. (pp. 56-70). Routledge.
Christoffersen, P. F., 2012. Elements of financial risk management. Academic Press.
Cole, S. and et. al., 2013. Barriers to household risk management: Evidence from
India. American Economic Journal: Applied Economics. 5(1). pp.104-35.
Hull, J., 2012. Risk management and financial institutions,+ Web Site (Vol. 733). John Wiley &
Sons.
Lam, J., 2014. Enterprise risk management: from incentives to controls. John Wiley & Sons.
McNeil, A. J., Frey, R. and Embrechts, P., 2015. Quantitative risk management: Concepts,
techniques and tools. Princeton university press.
Sodhi, M.S., Son, B.G. and Tang, C.S., 2012. Researchers' perspectives on supply chain risk
management. Production and operations management. 21(1). pp.1-13.
Online
Risk Management. 2018. [Online]. Available
through:<http://www.gpmfirst.com/books/business-transformation-management-
methodology/risk-management>.
Situational Analysis. 2018. [Online]. Available
through:<http://www.businessdictionary.com/definition/situation-analysis.html>.
SWOT Analysis and PEST Analysis. 2018. [Online]. Available
through:<https://creately.com/blog/diagrams/swot-analysis-vs-pest-analysis/>.