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Certified Meeting Professional (CMP) > Lesson 3: Risk Management > Flashcards

Lesson 3: Risk Management Flashcards

Domain C

1
Q

Four basic stages of risk management

A
  1. preparedness
  2. response
  3. recovery
  4. mitigation
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2
Q

Define Risk Management

A

Ongoing process of assessing risks (Possibility that something may occur) and apply appropriate measures to manage the probability and consequences

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3
Q

What examples would be considered “risks”

A

Natural disasters, political unrest, terrorism, power outages, things that threaten people and organizations

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4
Q

Risk Assessment / Risk Identification

A

Identifying the risks specific to the destination, meeting or business event being planned

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5
Q

SWOT Analysis

A

S: Strengths
W: Weaknesses
O: Opportunities
T: Threats

S/W are internal to the meeting or event, including factors about the host organization, the program, participants, and stakeholders.

O/T are external to the meeting or event, including elements related to the destination, venue, to other groups

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6
Q

SWOT Analysis gives you the opportunity to do what?

A

Consider mitigation measures you already have in place

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7
Q

National Fire Protection Association (NFPA) suggests combining threats into three categories for your risk management plan

A

1) Natural disasters (Hurricane, Lightning strike)
2) Human-Cause (arsonist, terrorist)
3) Technological (electrical fire, GDPR)

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8
Q

After identifying and analyzing your risks, you have three choices for each type of risk

A
  1. Accept/Ignore
  2. Manage/Mitigate (Contracts, Insurance)
  3. Avoid the Risk
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9
Q

Define:
1. Accept/Ignore
2. Manage/Mitigate
3. Avoid

A
  1. Accept/Ignore = probability low or consequences minimal (minor injury; illness)
  2. Manage/Mitigate = probability high or potentially high consequences
  3. Avoid = probability high/high consequences
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10
Q

Planner’s time spent should be to manage/mitigate risk as much as possible (Due Diligence)

A
  • Verify that the hotel has done its due diligence (Track record and current status)
  • Manage/mitigate via insurance and contracts
    -presenter’s note: RFPs, RFP responses, and questionnaires can limit your liability
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11
Q

Waivers of Liability

A

-Document signed by activity participant acknowledging and assuming the risk of participation
-Must be carefully written to be enforceable when risks are not made clear to the participant

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12
Q

Insurance: Commercial General Liability / Public Liability

A

Provides protection against claims involving bodily injury and property damage. Protects the business from damage or loss that occurs on business premises.

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13
Q

Insurance: Umbrella Policies

A

To cover gaps under the primary insurance policies

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14
Q

Insurance: Fire Liability

A

Provides protection; event sponsor held responsible for fire damage to the building caused by negligence

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15
Q

Insurance: Medical Liability

A

Reimbursement of medical expenses for injuries that occur at the site

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16
Q

Insurance: Independent Contractor Liability

A

Certificate of insurance showing that event carry works comp and general liability insurance

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17
Q

Insurance: Products Liability / Host and Alcohol liability

A

Food Concession or serving food and drink at a reception or dinner, product liability insurance protects the group against claims such as food poisoning

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18
Q

Insurance: Additional Insured

A

Transportation / Substantial liability exposure for injury to persons and damage to property

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19
Q

Insurance: Valuable paper and records

A

Insurance that is available to pay for the cost of reproducing any paper, pamphlets or records as a result of fire, water, vandalism, etc

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20
Q

Insurance: On-Site Office

A

Insurance that would cover all event equipment that the group owns or rents to use at the event facility

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21
Q

Insurance: Exhibits

A

Exhibitors can insure their exhibit property on-site at the exhibition as well as transit to and from

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22
Q

Insurance: Employers Liability/Workers Comp

A

Convers the employees who work at the event

23
Q

Insurance: Travel

A

To cover travel to and from the meeting and event

24
Q

Insurance: Non-Appearance

A

For Speakers and entertainers, to cover “not have to appear” any losses incurred

25
Q

Insurance: Event Cancellation

A

Protects against loss of revenue if the event is interrupted or cannot be held because of fire, weather, a strike, or other insured hazard

26
Q

Insurance: Enforced reduced attendance

A

protects you from lower-than-expected attendance due to certain circumstances beyond your control

27
Q

Insurance: Property Damage

A

To insure your own property that you take onsite to an event

28
Q

Insurance: Money Insurance

A

If the event has a paying public, loss of cash or checks while at the venue or in direct transit to and from the bank

29
Q

Insurance: Third-Party Losses

A

Natural causes if the event is cancelled

30
Q

Emergency Response Plan

A
  • The worst time to make decisions is after an emergency occurs
  • Venue will have a plan of their own; planner should coordinate in advance

Should focus on two main things-
1. getting people out of harm’s way
2. contacting the proper emergency responder

31
Q

Threat Assessment

A
  • Includes Risk Assessment but is more specific to each meeting, destination, venue
    -Threat assessment is the process of assessing threats to people, property, organizations, and meetings overall and other elements identified in risk (identification) assessment.
  • Threats = negative risk-creating aspects
32
Q

Capability Assessment (also part of the risk assessment and analysis)

A
  • Capabilities = positive risk-reducing aspects
  • Capabilities include fire extinguishers, hard-wired sprinklers, AED (automated external defibrillators, security personnel, and other trained staff, e.g., CPR, first aid, crisis management
33
Q

Communications

A
  • One or more modes of communication may become unavailable; plan accordingly
  • Communication of some form must be immediate and available; have several available
    -Types include:
    Landline/house phone, Mobile Phone, E-mail and Text Messaging Hand-held radios, Social media
34
Q

Strategies in risk management when coming to communication should include

A
  • Meeting planner direct access to key hotel personnel
  • Phone numbers, email, and social media sites for planners and key staff
  • Planner access to phone numbers for all sources of first responders
  • Ability to contact all members of an organization, including all attendees
  • Separate radio channels for routine and emergency communications
  • Outgoing voice mail or texting capability
35
Q

Six Types of Security

A
  • Contracted: Provided by an outside company; Uniformed or Non-Uniformed; May or may not carry weapons depending on venue and location.
  • Law Enforcement: On or off-duty, uniformed or plain clothes (undercover)
  • Peer: Trained personnel of similar age and appearance, dressed similarly to attendees but identified as security personnel
  • Personal: AKA “bodyguards,” assigned to one person or a small group
  • Proprietary: Employed or hired by a venue or organization with a defined scope of responsibility
  • Volunteer: Unpaid. Provide general information to attendees, direct traffic, and check credentials at doors. Not responsible for situations involving danger, theft, or physical risk.
36
Q

Security company/Planner Pre-requisites

A
  • Learn enough to know what services should be expected from the security company
  • Use only licensed, bonded, and insured services
  • Check for accreditation and other credentials required by insurance carriers to ensure legitimacy in the jurisdiction.
  • Ask for references and certificate of insurance
  • Allow company to help develop/review response procedures for high-probability and high-consequence occurrences
  • Adapt your procedures if necessary; include venue staff in decisions
  • Know what specific services will be provided, including communications equipment, if any
37
Q

Local Authorities

A
  • Include local authorities in discussions as warranted, especially if your event could draw protesters or create similar public disturbances.
  • Allow them to identify what permits and licenses you may have to comply with local laws, including fire-related permits and regulations.
  • For international meetings, be in contact with the local consular or embassies
  • Encourage U.S. travelers to register their travel with the U.S. Smart Traveler Enrollment Program
38
Q

Incident Reporting

A
  • Develop and have ready an incident reporting form to document various incidents, whether resolved or not, while on-site
  • Use of an incident form with good documentation can be used later if a negligence claim occurs.
39
Q
  1. In a risk management plan mitigation includes which activities?
    Page 64

A. There is no limit or reduction of the consequences if a crisis does occur.
B. Put measures in place to limit or reduce the consequences if a crisis does occur.
C. Reduce the probability of a natural disaster.
D. No measures are in place to prevent the most severe consequences if a crisis does occur.

A

B. Put measures in place to limit or reduce the consequences if a crisis does occur.

40
Q
  1. What are the four basic stages of risk management?
    Page 60
    A. Accept risk, ignore risk, manage risk or avoid risk.
    B. Preparedness, response, recovery, mitigation.
    C. Strength, weaknesses, opportunities, threats.
    D. Indemnification, attrition, cancellation, force majeure.
A

B. Preparedness, response, recovery, mitigation.

41
Q
  1. Which of the following is the primary role of a risk management plan for a meeting or event?
    Page 67

A. To protect the meeting destination.
B. To protect perceptions of the organization.
C. To protect the risk manager.
D. To protect people and property.

A

D. To protect people and property.

42
Q
  1. What does an umbrella policy provide for the host organization of a meeting or event?
    Page 69

A. It provides coverage under additional insured on other entities insurance policies.
B. It is insurance to cover gaps in coverage under the primary insurance policies.
C. It protects everyone against everything.
D. It is the same as general liability insurance.

A

B. It is insurance to cover gaps in coverage under the primary insurance policies

43
Q
  1. Hazardous material spill, explosion and labor dispute would all be examples of:

A. Technological threat
B. Force Majeuer
C. Man Made threat
D. Natural disaster

A

C. Man Made threat

44
Q
  1. Protection against claims involving bodily injury and property damage is also called:
    Page 69
    A. Additionally insured
    B. Umbrella policy
    C. Commercial general liability
    D. Products liability answer
A

C. Commercial general liability

45
Q
  1. The risk management team for a meeting should receive funds, training, and equipment from what source?
    Page 70
    A. The federal government
    B. Potential attendees
    C. Executive management / own organization
    D. The facility is involved in the meeting
A

C. Executive management / own organization

46
Q
  1. Which of the following is one of two categories of risk that should be included in a risk management plan, according to the National Fire Protection Association?
    Page 63

A. Risks caused by natural disasters
B. Risks caused by the facility
C. Risks caused by strikes in the labor force
D. Risks caused by a lack of care

A

A. Risks caused by natural disasters

47
Q
  1. Which of the following items needs to be addressed by the sponsoring organization during a crisis to ensure effective communication?
    Page 73

A. Develop a contact list for media Representatives
B. Use several levels and types of communication- including landlines, help handheld radios and pre-recorded emergency outgoing messages
C. Keep the media informed and let them inform the employees of the sponsoring organization
D. Interview key personnel to assess how well the crisis management plan works

A

B. Use several levels and types of communication- including landlines, help handheld radios and pre-recorded emergency outgoing messages

48
Q
  1. Determining a plan for a change during the event using an activation indicator is a:
    Page 73

A. Continuity Plan
B. Contingency Plan
C. Emergency Response Plan
D. Communication Plan

A

B. Contingency Plan

49
Q
  1. Evaluating the Convention Center by looking at things like AED’s, sprinkler systems, and staff training would be called:
    Page 71

A. Capability Assessment
B. Venue Strategy
C. Risk Transfer
D. SWOT Analysis

A

A. Capability Assessment

50
Q
  1. At your board meeting, the CFO asks for a SWOT analysis for the destination you are considering for the next sales incentive. What is he looking for?
    Page 61

A. A plan for swimming, watersports, ocean sports and tanning
B. Analysis of SouthWest Airlines fares Over TransAir fares
C. An analysis of strengths, weakness, opportunities and threats
D. He’s making it up to make you look stupid in front of the CEO

A

C. An analysis of strengths, weakness, opportunities and threats

51
Q
  1. Using licensed bonded and insured security personnel at your event usually means you are using:
    Page 75
    A. Personal security
    B. Peer Security
    C. Contracted Security
    D. Volunteer Security
A

C. Contracted Security

52
Q
  1. Insurance that protects the group against loss of revenue if the event is interrupted or cannot be held due to weather or fire is called:
    Page 70

A. Third Party Losses insurance
B. Event Cancellation Insurance
C. Enforced Reduced Attendance Insurance
D. Property Damage Insurance

A

B. Event Cancellation Insurance

53
Q
  1. Ensuring that contract clauses such as attrition, force majeure and indemnification are in your hotel contract and well written would be one way to:
    Page 66

A. Avoid risk
B. Mitigate risk
C. Transfer Risk
D. Not get fired

A

C. Transfer Risk

Certified Meeting Professional (CMP) (10 decks)

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