Roger Rickard Presentation On Event Risk Management

Risky BusinessRisky BusinessManage risk of your meetings and events!Manage risk of your meetings and events!

© 2009 Roger Rickard, REvent, LLC

Who? Who?

Who needs to know about Risk? Who needs to know about Risk? • The PlannerThe Planner• The SupplierThe Supplier

– HotelierHotelier– CVB – Destination Marketing OrgCVB – Destination Marketing Org– DMCDMC– Transportation OperatorTransportation Operator– Venue ManagerVenue Manager– All suppliersAll suppliers

© 2009 Roger Rickard, REvent, LLC

Roger’s thoughts… Roger’s thoughts…

• There is no one magic formula to mange There is no one magic formula to mange all forms of risk in the tourism and event all forms of risk in the tourism and event industries.industries.

• Risk assessment is an much about asking Risk assessment is an much about asking the right questions as is about getting the the right questions as is about getting the right answers. right answers.

• Much less expense to manage a risk prior Much less expense to manage a risk prior to the event than to deal with the crisis to the event than to deal with the crisis after.after.

© 2009 Roger Rickard, REvent, LLC

Roger’s thoughts… Roger’s thoughts…

• One must face and seek ways to confront One must face and seek ways to confront crises prior to their occurrence.crises prior to their occurrence.

• ““Information overload” - will anyone read Information overload” - will anyone read this information?this information?

• All event risk is “potential.” All event risk is “potential.”

• We may assume that “risk” is a future We may assume that “risk” is a future event that we treat as if it had already event that we treat as if it had already happened.happened.

© 2009 Roger Rickard, REvent, LLC

Risky Business…Risky Business…

What keeps you What keeps you up at night?up at night?

What can go wrong

with the event!

© 2009 Roger Rickard, REvent, LLC

Introduction of RiskIntroduction of Risk

Risk Risk is the effect (positive or negative) of an is the effect (positive or negative) of an incident. incident.

It is computed from the It is computed from the probabilityprobability of the of the incident materializing (become an issue) incident materializing (become an issue) and the and the impactimpact it would have. it would have.

Probability X Impact = RiskProbability X Impact = Risk

© 2009 Roger Rickard, REvent, LLC

Types of RiskTypes of Risk

Avoidance Reduction Transference Retention

Includes not performing an activity that could carry risk.

Reduces the severity or likelihood of loss occurring.

Transfer to another party to accept the risk. May or may not mean insurance.

Accepting the loss when it occurs. Maybe too large or cost too much.

© 2009 Roger Rickard, REvent, LLC

Professional Event Risk ManagementProfessional Event Risk Management

APMC

ASSESS MANAGEPLAN CONTROL

© 2009 Roger Rickard, REvent, LLC

Event RisksEvent Risks

MISC

Health CrimeSafety

Environment

Security

CategoriesCategories

Risk Management

© 2009 Roger Rickard, REvent, LLC

Risk ManagementRisk Management

… is a structured approach to managing uncertainty related to a threat, a sequence of human activities including: risk assessment, strategies development to manage it, and mitigation of risk using managerial resources.

© 2009 Roger Rickard, REvent, LLC

Understanding Risk ManagementUnderstanding Risk Management

• Event: What could happen?

• Probability: How likely is it to happen?

• Impact: How bad will it be if it happens?

• Mitigation: How can you reduce the Probability (and by how much)?

• Contingency: How can you reduce the Impact (and by how much)?

© 2009 Roger Rickard, REvent, LLC

Understanding Risk ManagementUnderstanding Risk Management

Probability: How likely is it to happen?

X

Impact: How bad will it be if it happens?

=

Risk

© 2009 Roger Rickard, REvent, LLC

Risk Management is…Risk Management is…

Probability X Impact = Risk

Mitigation X Contingency = Reduction

Risk – Reduction = Exposure

© 2009 Roger Rickard, REvent, LLC

Best PracticesBest Practices

• Completely understand your corporate travel policy.

• Create an emergency contact list, include; vendors, staff & attendee emergency contact information.

• Ask all vendor/suppliers to identify any potential risk associated with the task they will supply.

© 2009 Roger Rickard, REvent, LLC

Best PracticesBest Practices

• Understand the vendor/suppliers procedures regarding this risk. Ask about potential alternatives and identify back-up options.

• Require all vendor/suppliers to name your company as additionally insured on their insurance policy.

• Understand the chain of command at your hotel/resort in case of an emergency.

© 2009 Roger Rickard, REvent, LLC

Best PracticesBest Practices

• Talk to your staff about your company’s disaster plans. Include emergency preparedness information during staff meetings.

• Two-way communication is central before, during and after a disaster.

• Decide in advance your on-site staff chain of command.

© 2009 Roger Rickard, REvent, LLC

Best PracticesBest Practices

• Know what kinds of emergencies might affect your company both internally and externally.

• Create a list of on-site inventory and equipment, including computer hardware, software and peripherals, for insurance purposes.

© 2009 Roger Rickard, REvent, LLC

Risky Business…Risky Business…

Every planner has to become a Every planner has to become a Risk Manager.Risk Manager.

© 2009 Roger Rickard, REvent, LLC

ContactContact

Roger Rickard

www.rogerrickard.com

916 625-0608

roger@rogerrickard.com