Week 10: Managing and mitigating risk
• Understand the definitions of risk from various viewpoints
• Explain the impact of risk at events
• examine The perception of risk amongst customers and their tolerances
• Understand culps 5 point risk framework
• DISCUSS The importance of creating a risk analysis and a risk matrix
• identify the differences between mitigation, acceptance, transference and avoidance of risk.
• Examine case studies from real incidents AND IDENTIFY HOW THE RISKS COULD HAVE BEEN
MANAGED.
Risk: THE PROBABILITY THAT HAZARDS DEFINED AS ; OBJECTS, PROPERTIES OF SUBSTANCE,
PHENOMENA OR ACTIVITIES WILL CAUSE ADVERSE AFFECTS (HSE)
AN UNCERTAIN EVENT OR CONDITION THAT IF IT OCCURS, HAS A POSITIVE OR NEGATIVE EFFECT ON
A PROJECT OUTCOME. (SILVERS, 2008)
UNFAMILIAR SEQUENCES OR UNPLANNED OR UNEXPECTED SEQUENCES AND EITHER NOT VISIBLE
OR IMMEDIATELY COMPREHENSIBLE ( JOHANSEN ET AL, 2014)
WHAT IS RISK?
PROBABILITY OF OCCURRENCE
(CHANCE)
VS.
CONSEQUENCE OR SIZE OF LOSS
(IMPACT)
THIS CREATES A TENSION BETWEEN THE INHERENT RISKS FOUND AT EVENTS AND HOW MANAGERS
DEAL WITH THOSE RISKS.
-EMBOK states Risk as one of the key domains within Its’ taxonomy model for practitioners. Event
managers should understand; “HOW SIGNIFICANTLY LESS EXPENSIVE IT IS TO MANAGE RISK, THAN IT
IS TO DEAL WITH THE RISK AFTER AN INCIDENT HAS OCCURRED”. (Silvers, 2008)
-Why should risk be managed? Tarlow identifies two significant risk factors in events;
● The risk of negative occurrence on and off site.
● The negative publicity that comes from such an occurrence.
“RISK CRISES ARE A SOCIAL CANCER THAT EATS AWAY AT THE EVENT INDUSTRY”. Tarlow, 2002.
-The cost of failing to deal with risk before an incident occurs:
• Loss of revenue (Clear up operations, insurance, compensation, future sales)
• Understand the definitions of risk from various viewpoints
• Explain the impact of risk at events
• examine The perception of risk amongst customers and their tolerances
• Understand culps 5 point risk framework
• DISCUSS The importance of creating a risk analysis and a risk matrix
• identify the differences between mitigation, acceptance, transference and avoidance of risk.
• Examine case studies from real incidents AND IDENTIFY HOW THE RISKS COULD HAVE BEEN
MANAGED.
Risk: THE PROBABILITY THAT HAZARDS DEFINED AS ; OBJECTS, PROPERTIES OF SUBSTANCE,
PHENOMENA OR ACTIVITIES WILL CAUSE ADVERSE AFFECTS (HSE)
AN UNCERTAIN EVENT OR CONDITION THAT IF IT OCCURS, HAS A POSITIVE OR NEGATIVE EFFECT ON
A PROJECT OUTCOME. (SILVERS, 2008)
UNFAMILIAR SEQUENCES OR UNPLANNED OR UNEXPECTED SEQUENCES AND EITHER NOT VISIBLE
OR IMMEDIATELY COMPREHENSIBLE ( JOHANSEN ET AL, 2014)
WHAT IS RISK?
PROBABILITY OF OCCURRENCE
(CHANCE)
VS.
CONSEQUENCE OR SIZE OF LOSS
(IMPACT)
THIS CREATES A TENSION BETWEEN THE INHERENT RISKS FOUND AT EVENTS AND HOW MANAGERS
DEAL WITH THOSE RISKS.
-EMBOK states Risk as one of the key domains within Its’ taxonomy model for practitioners. Event
managers should understand; “HOW SIGNIFICANTLY LESS EXPENSIVE IT IS TO MANAGE RISK, THAN IT
IS TO DEAL WITH THE RISK AFTER AN INCIDENT HAS OCCURRED”. (Silvers, 2008)
-Why should risk be managed? Tarlow identifies two significant risk factors in events;
● The risk of negative occurrence on and off site.
● The negative publicity that comes from such an occurrence.
“RISK CRISES ARE A SOCIAL CANCER THAT EATS AWAY AT THE EVENT INDUSTRY”. Tarlow, 2002.
-The cost of failing to deal with risk before an incident occurs:
• Loss of revenue (Clear up operations, insurance, compensation, future sales)
