Welcome to the world of event risk management! At Tecna UK, we understand the importance of ensuring the safety and success of your events, which is why we have partnered with a leading event risk expert with some helpful guidance on the various areas to consider when managing your own event risks.
It's a little nerve wracking to ensure you have considered and taken the appropriate steps to cover the simple stuff such as food poisoning, event staff injuries and other safety procedures let alone thinking about other events and their impact such as natural disasters, political unrest, terrorist attacks and the impact on your team and your wider guests. Most important to remember is to make sure you have informed and involved the relevant event decision-makers so they are aware of the wider risks so everyone is on the same page.
In this blog we talk to Paul Cook, an event insurance expert for over 20 years and the founder of Planet Planit Ltd, a specialist content consultancy and he's provided us with his top tips on event risk assessment to make sure you are fully up to speed.
Before we go into detail, let's cover the basics:
What is event risk management?
Risk management is an invisible key component when it comes to producing a successful event and the right safety measures are considered. Event risk management is the process of identifying, assessing, and controlling risks associated with events, such as festivals, conferences, and exhibitions. The goal of event risk management is to minimise the impact of potential threats and risks on the success of the event, and ensure the safety and well-being of attendees, staff, and the public.
Probability, in the context of event risk management, refers to the likelihood that a particular risk will occur. This is a crucial factor in determining the priority of risks and the measures that need to be taken to mitigate them. For example, a high probability risk, such as adverse weather conditions, may require more extensive contingency planning and preparation than a low probability risk, such as a terrorist attack. By considering likelihood of these risks and the circumstances at a given location and date, event organisers can prioritize their risk management efforts and allocate resources effectively, as well as reduce risk of harm.
What could happen if there are not event risk assessments in place?
There are several significant risks associated with not having event risk assessments in place, including:
- Legal and regulatory compliance: Failure to conduct event risk assessments can result in non-compliance with legal and regulatory requirements, leading to potential fines and legal action.
- Health and safety risks: Not conducting event risk assessments can result in inadequate planning and preparation, leading to increased risks of accidents and injury to attendees, staff, and the public.
- Reputation damage: Incidents that occur as a result of inadequate risk management can have a negative impact on the reputation of the event organizer, as well as the venue and sponsors.
- Financial loss: Events that are not properly planned and managed can result in financial losses, including costs associated with cancellations, insurance claims, and compensation for injuries and damages.
- Missed opportunities: Poor risk management can lead to missed opportunities for growth and expansion, as well as reduced opportunities for future events and collaborations.
By conducting comprehensive event risk assessments and implementing effective risk management strategies, event organizers can minimize these risks and ensure the success and safety of their events.
To ensure that everything runs as smoothly as possible, here are 3 key areas that deserve your attention. These are the risks to People, Property and Finance.
1. People
You need to make sure that you are taking care of the people that will come. It is not just the delegates but everyone else that connects with your event. Think of speakers, press, exhibitors, sub-contractors and more.
One of the ways in which you can protect people coming to your event, is to think of their user journey. For example, put yourself in the place of your delegates and go through their ‘event delegate journey’ – this will ensure that you understand exactly what you are asking them to do. Is there anything dangerous in there? A ‘trust fall’ as part of a training exercise could seem harmless enough, but is it? If in any doubt always let your insurers know what you are doing?
You can apply the same thinking for the user journeys of your exhibitors, stand contractors etc.
This will highlight any common ‘risk’ hot spots and enable you to take measures to mitigate.
And don’t forget to tell your insurance company or broker about anything hazardous as they will need to know.
2. Property
Check if you have responsibility for the equipment of the venue that you are using? Is it your Responsibility? Always check your position. Ask the venue. If they expect you to insure the kit, you will need to act. However, the kit may be insured by the venue as part of your contract with them.
Again, be clear on the position if you need to hire kit in for your event. Equipment hire companies usually want to see evidence of insurance before they release any kit. Remember also that you may need to insure the kit for the travel to and from the venue from the hire company.
Double check the equipment hire contract, especially the small print. What would happen for example if the kit you hired was damaged or stolen whilst in your control? How much money could you have to pay out if that were to happen? Find out at the outset and make sure you understand all the contract conditions.
3. Finance
This brings us neatly onto the issue of money and your wider financial commitments. When you sign a contract, especially the venue one make sure that you understand what you are accepting responsibility for. What you need to look at is the overall amount payable, not just the deposit, that you have agreed to. In addition to the venue costs, you would need to add in everything else from other suppliers (audio visual, speakers, caterers, security, registration suppliers etc) and then establish what overall event costs you have.
Have a look at the figure (overall event costs) and make the calculation as to whether you can comfortably pay this from your own funds if you need to. If you cannot then you might want to consider taking out a Cancellation Insurance policy (seek specialist advice from an insurance broker, advisor, or company).
The (Cancellation insurance) money cover will help you, but it is not there as a financial guarantee. For example, if you don’t have enough people attending your event the insurance policy will not make up any shortfall in monies you have to pay to suppliers. Keep the big money picture in mind, to keep focused to help you reduce your overall risk exposure.
Our expert today, Paul Cook concludes:
"In conclusion, effective event risk management involves considering a range of factors, from security and health and safety to logistics and communications. By working with an expert, you can be confident that your events will be planned and executed with the utmost care and attention to detail, ensuring that your guests have a safe and enjoyable experience."
Who is our contributor, Paul Cook
