Risk Management:
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www.iccaworld.com Risk Management: Top Ten Tips of Risk Management Practical Issues and Solutions ICMS Case Study 45 th ICCA Congress & Exhibition Date: Monday 30 th October 1600 - 1730 International Congress & Convention Association
Transcript of Risk Management:
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Risk Management:
Top Ten Tips of Risk Management
Practical Issues and SolutionsICMS Case Study
45th ICCA Congress & ExhibitionDate: Monday 30th October 1600 - 1730
International Congress & Convention Association
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Top Ten Tips of Risk Management
Mark Blair – Sales and Marketing Manager
Insurex Expo-Sure, UK
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Topics to be covered
• Introduction• UK Industry Survey• What is Risk Management?• Top Ten Tips• Crisis Management
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Insurex Expo-Sure
• We are in the meetings / events industry• What do I know?
– 15 years in the insurance industry– Last 6 years working with International
Organisations, Public Sector, Central Government, United Nations agencies, major corporations, charities and a very large air show
– Facilitator not a Practitioner
“How can we help you make your events more successful?”
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UK Industry Survey
• 41% of Organisers have cancelled an event
• 67% of the cancelled events were not insured
• 48% of organisers are not insured
• 51% of organisers buy insurance to protect reputation
• Key concerns
– A key attendee or spokesperson cancelling
– Damage to the venue
– Weather disrupting your event
– Transport problems disrupting your event
– Being sued by someone injured at event
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What is Risk Management?
• Various definitions– The process of identification, measurement, control, and
minimisation of risks to a level commensurate with the value of the assets protected
• Main types of hazard– Physical – fire at venue or terrorist attack– Moral – poor working practices or inadequate training given to
staff – risk is increased for temporary / casual labour
• Risk Management is Best Practice
– Event industry try to share wherever possible
– Common goal rather than competitive advantage
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What is Risk Management?
• When should I start to manage my risk?– When the idea is first thought up!
• What is the objective for holding the event?• What could prevent you from hitting these objectives?• Create a risk register• Think about prioritising these risks
– Frequency versus Severity– Risk Profiling– Three choices – Accept, Reduce or Transfer
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The 4 Quadrants of Risk
• Strategic Risk
– Why are we holding this event?
– Who is responsible for what element of cover / protection?
• Operational Risk
– How do we handle an incident at the event?
– What happens if the venue is not available?
• Financial Risk
– How many attendees do we need to have to make a profit?
• Hazard Risk
– Fire / terrorist incident
– Slip / trip / fall by visitor
– Food poisoning
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Top Ten Tips
1. Talk to each other – agree each party’s action points
2. Consider the Strategic Objectives
• Why is the event being held?
• What could happen to prevent this being held in future years?
3. Make a list of the 10 issues that could affect the success of the exhibition
• Frequency versus Severity
• Prioritise the list
4. Can any of the Top 10 risks be transferred?
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Top Ten Tips
5. Agree a “Risk Management” strategy• Outside consultants needed?
6. Crisis Management Plan needed?• Dovetail in with DRP of the venue
7. Protect the “Brand” of the event• Media communication Plan is essential yet
often forgotten
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Top Ten Tips
8. Test the plan• Desk top walk through at the least
9. Risk Assessments• Make special provision for casual or voluntary
staff
10. Documentation is essential• If it is not written down it did not happen!
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Relationship between Risk Management and Insurance
• You can only look to transfer your risks when you understand what they are
• Rating guide offers Underwriter facility to offer terms between agreed scales– “Why should I reduce my rates?”
• Crisis Management Plans• Structured Training for temporary staff• Health & Safety Assessments• Increased Security
• Majority of events are not insured– Lack of understanding?– Informed decision?
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Crisis Management
• Disaster Recovery Plan is essential– Ensure that this is tested– K.I.S.S.– First 2 hours / next 4 hours / next 12 hours– Chain of command and communication– Phone numbers up to date?– Where is the plan kept?– Media communication essential
• Brand / reputation risk
– Expect the unexpected
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Summary
• It is never too early
– Involve all interested parties / stakeholders at the infancy of the project
• What are my key risks?
– Can they be insured?
• What can prevent the event from going ahead this year / next year?
• Risk Management is Best Practice
– Share it
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Risk ManagementA case study of ICMS
Case Study Overview• Starting Point – a conference business
journey – the five steps• The Conference Environment (micro and
macro)• Stakeholder Analysis: why do we need
to know who is out there?• Financial Return on Investment – how
do you measure risk management as a business tool?
• Institutional/Government compliance requirements
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Risk ManagementA case study of ICMS - overview
• Security, nerves and dealing with the new world terror paradigm – reassuring your client/venue and everyone else!
• Sales and Marketing benefits – the pay off – yes really?
• The Risk Plan – what does it look like?
• Policies and Procedures – how long is a piece of string?
• Pros and Cons – is it black and white?
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Starting Point – a conference business journey – the five steps
• ICMS – in business for 40 years– Offices in Melbourne, Sydney,
Brisbane, Canberra• 31 full time employees• 15 casual employees• Specializes in conference
management• Barrie Markey – Managing Director
• Sarah Markey-Hamm – National Manager
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ICMS Head Office Melbourne, Australia
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Starting Point – a conference business journey – the five steps
• In early 2001 management decided to pursue risk management as part of its overall business strategy
• I was asked to develop a risk strategy that would include the following:– Risk policy– Risk procedures– Risk plan template– Staff Training– Ongoing monitoring and
communication back to management and staff
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Starting Point – a conference business journey – the five steps
• The risk model chosen to be applied to ICMS was based on the Australian and New Zealand Standard
• A/NZS4360 2004 Risk ManagementKey Elements are• Communicate and consult• Establish the contextKey Steps are:1. Identify2. Analyse3. Evaluate4. Treat5. Monitor and Review
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The Conference Environment (micro and macro) Element 1 Communicate and Consult
• The timeline for the implementation of the risk plan was 18 months which consisted of:– 6 months to develop the policies and
procedures– 6 months to train staff and implement
the plan– 6 months for monitoring, reviewing and
fine tuning
• Critical to the success of the plan were the two elements of:– Communication and consultation to all
relevant stakeholders
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The Conference Environment (micro and macro) Element 2 Establish the Context
• The micro conference environment – ICMS’ offices– Dealing with employees from all positions
and responsibilities – engagement, understanding, acceptance, empowerment
• The macro conference environment – what are the tasks, processes, work, jobs that ICMS is involved in and where are they done?– Who are the external relationships that
ICMS has in its conference life cycle?
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ICMS STAFF
Sarah Markey-Hamm
National Manager
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Step 1 Identify Risks
• Brainstorming with colleagues• Talking with industry• Reviewing past conferences• Listing what products and services ICMS offer
clients• Examining ICMS’ documents, templates, budget
spreadsheets, reporting tools• Internal and external communication methods
used at ICMS
• This leads to a long list of potential and real risks that impact on ICMS’ ability to deliver to it’s clients and stakeholders
• From the small to the large• From the simple to the complex• From the obvious to the improbable
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Step 1 Identify Risks Some Possible Risk Categories to Consider
Risk Categories• Financial• Economic• Political• OH&S• Cultural• Human Resources• Environmental• Legal• Duty of Care• Stakeholder• Venue• Equipment
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Step 2 Analyse all the businesses risks
• ICMS Stakeholder analysis: why do we need to know who is out there?
• Probability and Impact - what if? – how bad?
• Likelihood and Consequence
• Business Continuity modeling
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An ICMS Stakeholder
Clive Scott• General Manager
of Sofitel Melbourne
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An ICMS Stakeholder
Frank Mohren• Director of
Operations• Melbourne
Exhibition and Convention Centre
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An ICMS Stakeholder
Joel Cooper• Exhibitions
Manager• Harry the
Hirer
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An ICMS Stakeholder
Tracey CroslingSales ManagerVictorian Racing
Commission
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Step 3 Evaluate the Risks
• Apply a rating, scoring method
• Catastrophic, Extreme, very high, high, medium, low, miniscule
• Always, very often, often, occasionally, rarely
• Eventual risk rating based on the likelihood, impact analysis
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ICMS STAFF
Con PapadakisConference
Manager
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Step 4 Treat
• Apply controls• Use experts• More training• Remove risk• Change the scope, objectives, aims of
the conference• Take out more insurance• Add more staff/Different staff• Ensure full stakeholder input –
ownership - responsibility• Cancel conference
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ICMS STAFF
Patty D’Cruz• Conference
Manager
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Step 5 Monitor and Review
• Meet to discuss the conference using the risk plan as a working document
• Have the aims, objectives and scope of the conference remained the same?
• Are timeframes and schedules on track?
• Checklist used to monitor the conference in conjunction with the risk plan
• From the above points, information was communicated to relevant personnel
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Financial Return on Investment – how do you measure risk management as a business tool?
Some Questions to consider• Insurance premiums reduced or increased?• Are you spending less time in court?• Has the business reputation remained unsullied,
intact and respected?• Have new and returned business levels increased?• Has staff turnover changed?• Any offers to buy your business?
• Since 2001 ICMS has seen a steady growth in business,
• A business acquisition (Canberra)• Greater confidence in handling allegations of non-
performance – thus less fear of the litigious environment
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ICMS STAFF
Barrie MarkeyManaging
Director
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ICMS STAFF
Mirerva KeoghSponsorship and
Exhibition Co-ordinator
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Other Considerations and Themes
• Institutional/Government compliance requirements
• Security, nerves and dealing with the new world terror paradigm – reassuring your client/venue and everyone else!
• Sales and Marketing benefits – the pay off – yes really?
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ICMS STAFF
Abigail Krause• National
Business Development Manager
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ICMS STAFF
Lisa McNaught• Business
Development Manager
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Other Considerations and Themes
• The Risk Plan – what does it look like?
• Policies and Procedures – how long is a piece of string?
• Pros and Cons – is it black and white?
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Risk Strategy Pros and Cons
Pros• A good marketing
tool• A helpful legal aid• An excellent
training and educational tool
• Ensures a better understanding of the business
• Keeps staff in touch with the industry and related fields
• Disciplines staff
Cons• Needs to have total
organizational commitment
• Needs to be driven• Should not be ignored
once up and running• Continually needs
updating and reviewing
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Discussion Topics and Themes
• Do you need to have a risk management plan or is what you are doing sufficient to meet business continuity and quality process management?
• Do the benefits outweigh the costs of risk management for your business?
• How will risk management change over the next five years for our business environment?
• Should there be an industry standard for risk management on an international level?
• Evaluate last night’s event at the Rhodes fortress from a risk management perspective. As a starting point you can apply the five steps discussed in the case study
Key Steps are:1. Identify2. Analyse3. Evaluate4. Treat5. Monitor and Review
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Thank you!45th ICCA Congress & ExhibitionDate: Monday 30th October 1600 - 1730
International Congress & Convention Association
