Lesson 3: Risk Management Flashcards
Domain C
Four basic stages of risk management
- preparedness
- response
- recovery
- mitigation
Define Risk Management
Ongoing process of assessing risks (Possibility that something may occur) and apply appropriate measures to manage the probability and consequences
What examples would be considered “risks”
Natural disasters, political unrest, terrorism, power outages, things that threaten people and organizations
Risk Assessment / Risk Identification
Identifying the risks specific to the destination, meeting or business event being planned
SWOT Analysis
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
SWOT Analysis gives you the opportunity to do what?
Consider mitigation measures you already have in place
National Fire Protection Association (NFPA) suggests combining threats into three categories for your risk management plan
1) Natural disasters (Hurricane, Lightning strike)
2) Human-Cause (arsonist, terrorist)
3) Technological (electrical fire, GDPR)
After identifying and analyzing your risks, you have three choices for each type of risk
- Accept/Ignore
- Manage/Mitigate (Contracts, Insurance)
- Avoid the Risk
Define:
1. Accept/Ignore
2. Manage/Mitigate
3. Avoid
- Accept/Ignore = probability low or consequences minimal (minor injury; illness)
- Manage/Mitigate = probability high or potentially high consequences
- Avoid = probability high/high consequences
Planner’s time spent should be to manage/mitigate risk as much as possible (Due Diligence)
- 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
Waivers of Liability
-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
Insurance: Commercial General Liability / Public Liability
Provides protection against claims involving bodily injury and property damage. Protects the business from damage or loss that occurs on business premises.
Insurance: Umbrella Policies
To cover gaps under the primary insurance policies
Insurance: Fire Liability
Provides protection; event sponsor held responsible for fire damage to the building caused by negligence
Insurance: Medical Liability
Reimbursement of medical expenses for injuries that occur at the site
Insurance: Independent Contractor Liability
Certificate of insurance showing that event carry works comp and general liability insurance
Insurance: Products Liability / Host and Alcohol liability
Food Concession or serving food and drink at a reception or dinner, product liability insurance protects the group against claims such as food poisoning
Insurance: Additional Insured
Transportation / Substantial liability exposure for injury to persons and damage to property
Insurance: Valuable paper and records
Insurance that is available to pay for the cost of reproducing any paper, pamphlets or records as a result of fire, water, vandalism, etc
Insurance: On-Site Office
Insurance that would cover all event equipment that the group owns or rents to use at the event facility
Insurance: Exhibits
Exhibitors can insure their exhibit property on-site at the exhibition as well as transit to and from
Insurance: Employers Liability/Workers Comp
Convers the employees who work at the event
Insurance: Travel
To cover travel to and from the meeting and event
Insurance: Non-Appearance
For Speakers and entertainers, to cover “not have to appear” any losses incurred
Insurance: Event Cancellation
Protects against loss of revenue if the event is interrupted or cannot be held because of fire, weather, a strike, or other insured hazard
Insurance: Enforced reduced attendance
protects you from lower-than-expected attendance due to certain circumstances beyond your control
Insurance: Property Damage
To insure your own property that you take onsite to an event
Insurance: Money Insurance
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
Insurance: Third-Party Losses
Natural causes if the event is cancelled
Emergency Response Plan
- 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
Threat Assessment
- 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
Capability Assessment (also part of the risk assessment and analysis)
- 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
Communications
- 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
Strategies in risk management when coming to communication should include
- 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
Six Types of Security
- 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.
Security company/Planner Pre-requisites
- 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
Local Authorities
- 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
Incident Reporting
- 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.
- In a risk management plan mitigation includes which activities?
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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.
B. Put measures in place to limit or reduce the consequences if a crisis does occur.
- What are the four basic stages of risk management?
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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.
B. Preparedness, response, recovery, mitigation.
- Which of the following is the primary role of a risk management plan for a meeting or event?
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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.
D. To protect people and property.
- What does an umbrella policy provide for the host organization of a meeting or event?
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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.
B. It is insurance to cover gaps in coverage under the primary insurance policies
- 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
C. Man Made threat
- Protection against claims involving bodily injury and property damage is also called:
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A. Additionally insured
B. Umbrella policy
C. Commercial general liability
D. Products liability answer
C. Commercial general liability
- The risk management team for a meeting should receive funds, training, and equipment from what source?
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A. The federal government
B. Potential attendees
C. Executive management / own organization
D. The facility is involved in the meeting
C. Executive management / own organization
- 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?
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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. Risks caused by natural disasters
- Which of the following items needs to be addressed by the sponsoring organization during a crisis to ensure effective communication?
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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
B. Use several levels and types of communication- including landlines, help handheld radios and pre-recorded emergency outgoing messages
- Determining a plan for a change during the event using an activation indicator is a:
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A. Continuity Plan
B. Contingency Plan
C. Emergency Response Plan
D. Communication Plan
B. Contingency Plan
- Evaluating the Convention Center by looking at things like AED’s, sprinkler systems, and staff training would be called:
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A. Capability Assessment
B. Venue Strategy
C. Risk Transfer
D. SWOT Analysis
A. Capability Assessment
- 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?
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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
C. An analysis of strengths, weakness, opportunities and threats
- Using licensed bonded and insured security personnel at your event usually means you are using:
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A. Personal security
B. Peer Security
C. Contracted Security
D. Volunteer Security
C. Contracted Security
- 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:
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A. Third Party Losses insurance
B. Event Cancellation Insurance
C. Enforced Reduced Attendance Insurance
D. Property Damage Insurance
B. Event Cancellation Insurance
- Ensuring that contract clauses such as attrition, force majeure and indemnification are in your hotel contract and well written would be one way to:
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A. Avoid risk
B. Mitigate risk
C. Transfer Risk
D. Not get fired
C. Transfer Risk
