Event risk is defined as future incidents that have a negative impact on the event, or possibilities for the event to fail.
Event specialists are particularly sensitive to risk. In fact, it is very difficult for event organizers to create a perfect event. Because, there are countless possible risks. A single place, big thunder, new staff and volunteers, excitement in general … are potential pitfalls. Event managers abandon their advice on risk prevention as disaster and shorten their careers or the event industry. The rational assessment of potential hazards and preventive action is part of overall risk management. Note that the risk not only affects the main event. In many event materials, risk is the term used in the sense of financial and security risk, but this definition does not take into account issues in other areas of event management. can cause the event to fail. For example, fraud is a risk to be faced at many events. Incorrect introduction to the event by commercial or advertising is also a risk. Each risk can lead to financial and security issues during the event.
Risk management can be defined as the process of identifying issues, assessing and addressing them. It is a systematic, systematic approach that involves establishing context, identifying, analyzing, evaluating, processing, monitoring and sharing related risks with all functions, activities or processes. minimize losses and maximize opportunities.
Risk management and legal issues in event organization
Risk classification in event organization
The risks in the event are plentiful and varied. To better identify the potential risks, risk classification should be conducted.
By project event progression:
Risk can occur at any stage of an event project.
It can be risky at the stage of ideas creation, coordination stage or in the process of organizing the program (suppliers do not deliver on time, technical problems related to equipment operation) or after the event ends.
Dividing by environmental impact:
Risks from the internal environment (internal risk of the organization, for example, inaccurate funding estimates, cost of ownership, lack of professionalism of the project team), and risks from the external environment (environment macro field).
Every aspect of the event has hidden potential risks. Here are the common areas of risk:
Administrative risk or management risk: This is the risk from the personnel involved in the organization, affecting the organization of the event, directly affecting all aspects of the event. Every stage of the event is completed under human influence, so every stage of the event can be affected by the personnel in charge. Accordingly, the determination of organizational structure and office layout should reduce the risk for workers.
Health and Safety Risks: Most risk management concerns this area. The damage prevention plan and safety control plan are an important part of any risk management strategy. Risks related to food hygiene and safety should be given specific attention.
Risk management and legal issues in event organization
Risk Risks: Managing risks arising from the movement of people, selling alcohol and controlling noise.
Security Risks: The security plans for an event involve thinking about how to manage risk.
Marketing and public relations risk: The risk is very likely to involve bad ideas in advertising or misleading advertising. Advertising messages easily exaggerate the positive aspects of the event. That’s why event marketers, trying to present to the press the best ideas about the event. Consequently, attendees are not satisfied, because the event was not exactly what they advertised. Today, it is easy to lead the litigation. Event promoters must be aware of this and need to have a risk management plan. By its very essence, many traders are optimistic about their actions and tend to ignore potential risks. In addition, the risk from marketing can also occur due to the poor planning of communication tools. One example of this is the violent, roadshows of the game called “Heroes of Heroes” by FPT in 2008 met many criticisms, as teenagers The task of promoting this game is to sit on jeeps, dressed in rustic suits, murderous faces and pointing guns at pedestrians such as robbers.
Traffic Risks: Delivery, parking and public transportation contain potential dangers that need to be addressed.
Financial risk: fluctuations in interest rates, exchange rates ….
Risk from natural disasters: earthquakes, floods, storms, floods …….
Other risk: The speaker arrives on time; the contradiction of competitors at the venue to introduce new products of the company; Speakers are reporting suddenly ring the phone and then they answer the phone in the conference room (this risk is quite common in Vietnam); The lack of information and the lack of coordination of the organizers, the participants did not arrive on time (the case of the Egyptian Robocon team in the final Asia Pacific Robocon Final 2013 is a typical example), the host Failure to read the name of the guest or the wrong title invite them to dislodge and leave about …….
Classification by traditional management methods:
Operational risk (computer system failure, supply chain or operational processes fault, lack of speaker support devices, personal microphones, power outages) and strategic risk project, customer risk, industry risk).
Sort by origin:
Risks from the natural environment: Risks related to abnormalities in weather occur unexpectedly, affecting the organization that causes the event to fail (earthquake, tsunami …). It even affects the attendees and attendees.
Risks from the social environment: Due to changes in human values and norms, changes in social structure, family.
Risks from the cultural environment: Risks related to “sensitivity” due to a lack of understanding of the differences in language, customs, beliefs and religions, communication and suspicion etiquette of parties involved in the event). For example, the event in the South Pacific that the term “rotting pig” would offend many cultures.
Risks from legal environment: Regarding legal procedures such as procedures, permits, regulations on customs and habits. For example, the Vietnamese state prohibits the gathering of crowds at public places. This can be considered as a common difficulty in organizing meetings, marches or roadshows.
Risks from the economic environment: Relate to negative changes from the economic environment leading to changes in interest rates, exchange rates, commodity prices.
In addition, W.O ‘Toole and his colleagues listed some of the risks that come from triggers such as:
Employees and suppliers do not know the duties or responsibilities.
Do not report progress, or staff and volunteers lack enthusiasm.
The working intensity of staff and volunteers is too high (over pressure).
Lack of personal responsibility for decision making.
Lack of collaboration from other departments.
Thus, risk can come from every time, everywhere, every field in the process of event management. For this reason, W.O “Took and associates say that the industry has many ups and downs as the event industry, so it must be managed in a continuous and complete manner.
A number of legal papers that the event company has assisted in organizing the program: