Risk Management: The Essential Planning Tool for every event manager

As event managers and safety leaders, our primary goal is to create memorable, impactful events that run smoothly from start to finish. However, in the dynamic landscape of event planning, unexpected challenges are inevitable. This is where risk management takes center stage. Risk management, often viewed as only a safety net, is in fact a crucial planning tool that can be used to guide smarter decision-making and better planning, ultimately leading to more successful events.

Risk management is a powerful planning tool because it helps event leaders navigate the intricate process of identifying, assessing, and mitigating potential risks ranging from technical glitches to major security issues. Working through the risk management process early in the events planning cycle allows event managers to integrate strategic risk-reduction plans into the overall event design. This approach can reduce the likelihood that events will experience safety issues that should have been anticipated in advance. 

If you are unfamiliar with risk management, the process is traditionally broken down into the three phases mentioned earlier: identification, assessment, and mitigation. 

• During identification, key members of the event management team will brainstorm a wide range of potential risks, spanning everything from weather events, technology failures, and unreliable vendors to external safety threats.  You may have heard of the SWOT (strengths, weaknesses, opportunities, and threats) analysis which is frequently used during the identification phase. 
• After potential risks are identified, each risk is assessed in order to establish priorities. Risks are evaluated based on criteria such as likelihood and potential impact so that there is a strong understanding of which probabilities require more immediate or extensive planning. The tables below provide a useful way to evaluate the probability and potential severity of risks.

• Once the risks are assessed, mitigation strategies can be identified in order to lower the likelihood of the risk occurring and/or reduce its impact. Mitigation strategies might include contracting with backup vendors, investing in additional security personnel, or expanding current response protocols and training. 

Let’s consider how a severe thunderstorm with the possibility of a power outage is evaluated during the planning of an outdoor event. Using the graphic above, a power outage at this outdoor daytime event has a severity rating of 3 as a disruption to the event is likely to significantly damage the venue’s reputation. However, because the venue is equipped with a generator that can supply power for up to eight hours, a true outage is very unlikely. This places this risk in the green category, meaning that event managers will continue to monitor the situation to ensure that the severity or probability does not increase. In this example, pre-existing mitigation strategies (the generators) reduced the impact and likelihood of disruption due to a power outage during a storm. If generators are not on hand and the location has a history of grid instability during storms, the probability increases to a 3, or “may occur with no provocation.” Combined with the severity rating of 3, this places the risk of a power outage in the yellow zone. In this case, event managers can work towards the possibility of planning for outages or acquiring generators as a potential mitigation strategy. 

This example demonstrates how completing the three phases of risk management places venues in a stronger position to deliver quality events that meet guest and community expectations. However, this example also highlights the value of adding a fourth step to the process: integration of risk management practices into the overall planning framework. It sounds daunting, but strategies for integration could be as simple as expanding team training to emphasize mitigation strategies and risk identification, acquiring insurance to cover emerging concerns, and developing robust communication methods. 

Events should be planned so that risks are monitored continuously during the event which means ensuring that resources, systems, and manpower are available to support this process. By embedding risk management into the DNA of your event planning process, you can navigate the complexities of event management more consistently, leaving a lasting and positive impression. 

Send us a note if you’d like to discuss any of these recommendations or scenarios in greater detail.