The process of weighing, measuring, or assessing the unforeseen factors which may hamper wholly or partially achieving the desired goals of the event and designing the strategies to counter possible risk. The strategies designed include transfer the risk to any other party, minimizing effects of risk, avoiding the risk and or accepting the some or all consequences of particular risk factor. The risk management encompasses on risks generation from physical, legal or financial aspects of the event.
The vision of Event Manager to comprehend various risk factors which may have direct or indirect impacts on the flow of the event plays a vital role in developing right strategy for correctly identified risk. An ideal risk management starts with establishing the context, inclusive of the identity and objectives of stakeholders, the basing upon which risks are evaluated and help defining a framework for the process, agenda for recognition and analysis. The next step in process is to pin point potential event risks that once triggered will cause problem or hinder event flow.
Identifying the source of problems or with problem itself can be the other step to register risks visualized. Once the risks are identified, assessed and weighed as to their potential quantum of their effect , loss or probability of occurrence then it is very easy to plan, design method or combination of various techniques to be used during happening of each risk. Each risk must be registered and handled separately and approved by the appropriate management level.
Having done the risk management, recording various plans / decisions to deal with possible risks - the management plan then be reviewed, evaluated and adjusted accordingly.
Risk management is an important element of any successful event but it does consume resources and energies of management team. The allocated resources for risk management may prove more profitability if spent otherwise. Thus allocation of resources for risk management vs. using these for other profitable event activities be weighed, analyzed thoroughly keeping in mind the probability and quantum of negative effect of risks. Mind it! There is a thin line between the positive and negative effects of every risk. Improperly prioritized and assessed risk that are not likely to occur, may cause wastage of time and efforts. Allocating much resources or energies for the risks can prove waste and can prove more fruitful if consumed to deal with other aspects of event management. The experience and vision of professional event manager again can decide the care to be taken for.
Giving high priority to risk management process may prevent organization from completing the event or it may take too long to be profitable. In short, risk management may be kept as simple as possible but diagnosing, quantifying severity and taking keen look at the cost effect will always lead to appropriate risk management solution. Moreover, it is not possible to take care of all risks due to financial bounds and time limitations. In case risks are identified at large, possible solutions are brain stormed well, will help reducing allocation of resources and efforts and even limited allocated resources can be diverted to deal with various risks to minimize the negative effects. The organizations with proven track record of organizing events reduce cost affect by having the ability of handling the problem rightly and effectively thus make the event a success story
Writer: Nasir, MUAR Events International
aminnasir64@gmail.com / nasir@muar-events.com
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