RISK

MANAGEMENT

LESSON 13
WHAT IS A RISK?
The dictionary defines risk as the possibility of loss or injury. Thus, risk
management is the assessment of risk and the measures taken to alleviate its
effects.
Recognizing the need and identifying the risks;
Reacting to the need and knowing what can be done to mitigate loss;
Recording or tracking measures and improving on them; and
Relaying or communicating the mitigation plans.
A risk may stem from both man-made and natural disasters, and accidents. What do
we do when such risks do happen?

Fire- Make sure the alarms are working before the event, and emergency
numbers are included in the exhibitors manual and staff guide and posted in the
secretariat.

Bomb Threat- While most most bomb threats are pranks, such threats must be
always be dealt with caution.

Typhoon- It is important to have contingency plans considering typhoons or

heavy rains.
CRISIS COMMUNICATION PLAN
Understand how information should flow in the organization by preparing a
directory with the names and numbers of the staff and authorities for
emergencies.
Know how to immediately respond to a crisis as it occurs. Select a single
spokesperson this must be a real person from your organization and not a
hired public relations(PR) talent.
INSURANCE
A payment guarantee in case this risk indeed happens. An example insurance is a
legal liability protection for organizers of one-off fireworks display, an exhibition,
or even multiple events. Insurance protects organizers from liabilities which may
be caused by accidental injury or damage arising from the event.
CONTRACTS
A binding agreement which the law can enforce. It is entered into by two or
more parties to exchange promises to do, or refrain from doing acts.
MAJOR PARTS OF SIMPLE AGREEMENT
Parties- An agreement usually starts with the identification of the parties who
undertake the promises, what business they are in, and their address.
Background- This section describes on going circumstances to contextualize
the agreement.
Body of the Agreement- This is the working or operational part of the
document which indicates all the details of the promises including the payment
terms.
Integration Clause- This indicates that the agreement is the agreement
between the parties with respect to the matters covered in the agreement.
 Signature- The closing and signature section should mention that the parties
intend to be legally bound by the agreement.
Other clauses which may be important for an event organizer(placed before the
integration clause):
1. Choice of Law- designates the country whose law shall govern.
2. Force Majeure- means greater force, and it excuses a party from liability if
some unforeseen events beyond the control of that party prevent it from
performing its obligations under the contract.