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Title: Risk Management: Top Ten Tips of Risk Management Practical Issues and Solutions ICMS Case Study


1
Risk Management Top Ten Tips of Risk
ManagementPractical Issues and SolutionsICMS
Case Study
International Congress Convention Association
  • 45th ICCA Congress Exhibition
  • Date Monday 30th October 1600 - 1730

2
Top Ten Tips of Risk Management
  • Mark Blair Sales and Marketing Manager
  • Insurex Expo-Sure, UK

3
Topics to be covered
  • Introduction
  • UK Industry Survey
  • What is Risk Management?
  • Top Ten Tips
  • Crisis Management

4
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?

5
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

6
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

7
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

8
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

9
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?

10
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

11
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

14
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

15
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

16
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?

17
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

18
ICMS Head Office Melbourne, Australia
19
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

20
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 Management
  • Key Elements are
  • Communicate and consult
  • Establish the context
  • Key Steps are
  • Identify
  • Analyse
  • Evaluate
  • Treat
  • Monitor and Review

21
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

22
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?

23
ICMS STAFF
  • Sarah Markey-Hamm
  • National Manager

24
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
    its clients and stakeholders
  • From the small to the large
  • From the simple to the complex
  • From the obvious to the improbable

25
Step 1 Identify Risks Some Possible Risk
Categories to Consider
  • Risk Categories
  • Financial
  • Economic
  • Political
  • OHS
  • Cultural
  • Human Resources
  • Environmental
  • Legal
  • Duty of Care
  • Stakeholder
  • Venue
  • Equipment

26
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

27
An ICMS Stakeholder
  • Clive Scott
  • General Manager of Sofitel Melbourne

28
An ICMS Stakeholder
  • Frank Mohren
  • Director of Operations
  • Melbourne Exhibition and Convention Centre

29
An ICMS Stakeholder
  • Joel Cooper
  • Exhibitions Manager
  • Harry the Hirer

30
An ICMS Stakeholder
  • Tracey Crosling
  • Sales Manager
  • Victorian Racing Commission

31
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

32
ICMS STAFF
  • Con Papadakis
  • Conference Manager

33
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

34
ICMS STAFF
  • Patty DCruz
  • Conference Manager

35
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

36
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

37
ICMS STAFF
  • Barrie Markey
  • Managing Director

38
ICMS STAFF
  • Mirerva Keogh
  • Sponsorship and Exhibition Co-ordinator

39
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?

40
ICMS STAFF
  • Abigail Krause
  • National Business Development Manager

41
ICMS STAFF
  • Lisa McNaught
  • Business Development Manager

42
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?

43
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

44
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 nights 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
  • Identify
  • Analyse
  • Evaluate
  • Treat
  • Monitor and Review

45
Thank you!
International Congress Convention Association
  • 45th ICCA Congress Exhibition
  • Date Monday 30th October 1600 - 1730
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