Top Ten Tips of Risk Management in the Exhibition Industry

1
Top Ten Tips of Risk Management in the Exhibition
Industry

• UFI Open Summer Seminar - Helsinki
• 27th June 2006
• Mark Blair Sales and Marketing Manager

2
Topics to be covered

• Introduction to Insurex
• UK Industry Survey
• What is Risk Management?
• Top Ten Tips
• Crisis Management
• Summary
• Q As

3
Insurex Expo-Sure

• We are in the exhibition / 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?

4
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

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The Risk Radar Illustrative Risk DriversIn
order to effectively assess and manage risk,
organisations must learn to look at risk as a
whole, and then mitigate and/or finance
internally and externally driven risks.
Externally driven
Market demand
Strategic Risks
Financial Risks
Financial market risks
Future Shows
Ticket sales / breakeven points
Customer/ industry changes
Internally driven
Asset values
Intellectual capital
Alliances
Research development
Credit default
Liquidity, cash flow issues
Channels and networks
Information systems
Food Poisoning
H.R.
Accounting / control systems
Public liability
Regulatory environment
Key managers
Property damage
Employee injury
Supply chain
Brand / reputation
Operational Risks
Hazard Risks
Natural disasters
Business continuation / Disaster Recovery Plans
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Top Ten Tips

• Talk to each other agree each partys action
  points
• Consider the Strategic Objectives
• Why is the event being held?
• What could happen to prevent this being held in
  future years?
• Make a list of the 10 issues that could affect
  the success of the exhibition
• Frequency versus Severity
• Prioritise the list
• Can any of the Top 10 risks be transferred?

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Top Ten Tips

• Agree a Risk Management strategy
• Outside consultants needed?
• Crisis Management Plan needed?
• Dovetail in with DRP of the venue
• Protect the Brand of the event
• Media communication Plan is essential yet often
  forgotten

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Top Ten Tips

• Test the plan
• Desk top walk through at the least
• Risk Assessments
• Make special provision for casual or voluntary
  staff
• Documentation is essential
• If it is not written down it did not happen!

12
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?

13
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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Concerns from Industry Survey

• Key concerns
• A key attendee or spokesperson cancelling
• Contingency planning - Insurable
• Damage to the venue
• Contingency Planning - Insurable
• Weather disrupting your event
• Insurable under Cancellation and Abandonment
• Transport problems disrupting your event
• Insurable under Cancellation and Abandonment
• Being sued by someone injured at event
• Insurable under Public Liability section

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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