What is risk
management?
Risk management is about predictions and prevention and is
the measure of the probability and consequence of not achieving a defined event
goal. It is a logical and systematic method to reduce the risks associated with
any activity, function or process in an event.
Risk management minimises loss and maximises opportunity –
it should be remembered that loss does not only include loss of life or injury
but also loss of property and reputation.
Duty of Care
All existing and proposed South African laws concerning the events industry revolve around
the one Common Law principle of ‘Duty of Care’. Organisers are required to show
that they exercised Duty of Care to participants’ lives, health and property
In the case of loss, Courts essentially ask two questions:
•
Was incident predictable
•
Could it have been prevented
The Judge then applies the ‘Reasonable Man’s’ test and if
the answer is ‘yes’ to the questions, then liability has occurred and the law
takes the view that the event organiser is the one who is liable, as he or she
has been paid by a client for a professional service. If the answer is ‘no’,
then risk management has been successfully applied.
Risk Management
Models
The old model of pressure was for everyone to push
responsibility to the event organiser and the event organiser to take out
insurance. The problem with this was that it assumed that all risks could be
insured; had no understanding of wrongdoing; and worked on the hope of the
ignorance of the public who would not claim against the organisers.
The new model works on consultation with all stakeholders
and a Risk Management plan that uses insurance as only one of the options to
provide risk cover.
Event management
includes risk management
Finding the risks and controlling them is essential in
getting together a safe and successful event. With the complexity of modern
events, the current legal system and the requirements of the event’s
stakeholders, the event manager has to undertake risk management systematically
and make sure that there is documentary proof of every step.
As an event manager, you have already created a process for
running events; now all you have to do is transfer that process to risk
management. Though there is a multi-risk focus, it is only a single process.
Risk management must be considered before the
selection of suppliers, staff and communication, as the risk profile of the
event will dictate these choices. Therefore, risk management results differ for
each event.
5 basic questions
Evaluation begins with answering the five basic question of
events management from a perspective of risk.
•
Who
is coming? Crowds vary in nature and a small gathering should be safer than a large
one, but look at the delegates’ profile in context. In the same stadium,
football crowds could be more unruly than concert goers
•
What is
the event? Corporate dinners carry far less risk than a cup final. Cocktail
parties carry less risk than 3-day exhibitions
•
When is
the event? Does the time of day add traffic stress to the equation? Is this an
outdoor marquee in August (high wind factors)? Will storm conditions alter the
event’s success? If it is very cold, do heating arrangements add a fire risk?
•
Where is
the event being held – the venue can
add risk if it is not geared for high crowds, massive surges, traffics
problems, crime prevention etc. Perhaps the venue is remote – are there toilet
facilities, drinkable water, can trucks access the site for setup, is there
power or does it have to be provided?
•
Why is
the event being held? This relates to risk management around the client’s
requirements and expectations and in turn his or her client’s expectations.
This can include profit from an event, favourable media comment, ticket sales,
happy delegates.
Now you have the how,
the next step is more in-depth risk assessment in Part 3.
If you have any questions, email Teresa@lithacommunications.co.za.
