Risk Management Flash Cards
An analytical took used to shape the development, production, and evaluation of an event. The process of this is to answer the 5 W's (why is your event occurring, who is coming to your event, when will your event be, who is coming to your event, where will your event be located, and what will be happening at your event). All of the 5 W's have an associated risk with them.
Needs assessment
If your manager asks you to produce an event budget that represents an event's future financial expectations what type of a budget is your manager asking you to develop?
pro forma budget
Legal management is part of what EMBOK domain?
risk domain
All of the following are typical laws and ordinances that are pertinent to events managers except
site and floor plans
Knowing the possible risks and being prepared to compensate for them
Risk resilient
What is an associated risk if the scope definition for an event is incomplete?
Wrong: reduced likelihood of competitive threats
___________ are laws or legal principles developed through judicial case decisions.
common law
____________ includes the acquisition of necessary equipment, development, and implementation of the modes and protocols for on-site briefing and debriefing activities as well as information exchange with internal and external constituents of the event project, including the preparation and incorporation of applicable documentation and contact information into comprehensive and readily accessible format.
communications management
In accordance with the principle of ___________, all workers and event attendees have the right to know the hazards associated with the use of various event related materials, equipment, and conditions that may be involved with a special event. For example, if you have an event that has pyrotechnics planned for a show finale it is your responsibility to make all volunteers and employees aware of potential smoke and fog.
duty to warn
Non-profit organizations that host several special events a year for fundraising purposes must make sure that the organization's _____________ justify all of the event's expenditures, are consistent and comprehensive, and protect an event's assets.
internal controls
The typical communication tools used at and for an event include all of the following except:
non-verbal
The goals of risk management include all of the following except:
transfer liability
A contract is an agreement between at least two parties. All of the following components must be included in a legal binding contract except:
wrong: the parties involved
For proper sanitation and hygiene at an event, a rule of thumb in event management is that a minimum of ______ stalls (toilet plus urinal) per 100 people should be provided for events with less than 6 hours duration.
2 toilets
As the event manager at the Park Plaza Gardens restaurant (a restaurant and event venue located on Park Ave in Winter Park) you decide to not publicly address a recent health violation that resulted in the restaurant/venue being temporarily closed. You think that it is just too embarrassing to bring up or try to resolve through a press release to the media. The health violations include: dead roaches on the premises, employees failing to wash hands, employees touching ready to eat food, live roaches on the premise found, rodent activity present as evidenced by fresh rodent droppings found. You begin to notice that events scheduled to take place at the Plaza begin to cancel. This may be because the public relations management risk associated with a poor health report was more of a(n) _______ than you thought.
Absolute risk
Cause-related and fund raising events are created by or for a charitable or cause related group for the purpose of attracting revenue, support, and or awareness. These types of events typically operate from a very small budget. Therefore, a prominent domain area that event managers might be concerned about for cause-related events is the _________. If this is the case, then event managers for a cause-related event may also be concerned with the ________ domain which includes the management of sponsorship sales that could increase the event budget.
Administration domain/financial management and Marketing domain
The __________ domain in the EMBOK Model includes risks that may be associated with ensuring that the event runs on time and according to the event's production schedule.
Admistration
_______ is the legal limit of occupants in a building or structure that is mandated by the local county fire rescue department for any gathering or event that has 50 people or more in attendance for purposes of dining, drinking, amusement, or awaiting transportation.
Assembly occupancy
A binding legal agreement between two or more parties specifying the benefits and obligations of the agreed upon actions.
Contract
Justin Bieber requires that his concert promoters be allowed to stock his dressing room with mixed nuts, potato chips, herbal teas, some Vitamin Water, deli meats, vegetable and fruit platters as special hospitality requirements. What is this an example of?
Contract rider
The __________ domain in the EMBOK Model includes risks that may be associated with menu design (food and beverage selection) for a gala awards dinner.
Design
You have been hired to plan a "Rhinestone Cowboy" event themed party for the Gainesville, FL Community Alliance (GCA), which is a social membership organization that provides an environment in which gay, lesbian, bisexual, transgendered people, and their friends have opportunities to meet through educational and social activities. Your client, GCA, has stipulated that the theme, the entertainment, the menu design, and the decor for the event must all be of superior quality. Therefore, you know that you must heavily concentrate your attention in the development and risk management of which EMBOK Model domain?
Design ?
______________ is the thorough and objective investigation to determine the accuracy of claims made by parties to a transaction and to evaluate the financial and organizational stability, the conditions that may cause harm and the technical capacity and/or infrastructure necessary to deliver on those claims.
Due Diligence
(Event Management Body of Knowledge) A knowledge framework and descriptive summary of the scope and processes that are used in the management of events.
EMBOK
A public or private planned gathering organized for a particular purpose
Event
The practice of developing, organizing and administering a planned event
Event Management
The use of events or commercial participation in events as a marketing tool
Event Marketing
The invididual responsible for planning and implementing an event
Event Organizer
Travel to a destination for the purpose of attending a public or private event
Event Tourism
The monies spent on and in conjunction with a planned event
Event spend
___________ are events for bringing buyers and sellers together to view and or sell products, services, and other resources to a specific industry, market, or the general public.
Exhibitions, expositions, and fairs
The state of being vulnerable or exposed to the possibility of loss
Exposure
A decision tree and a fault tree analysis follow the same process in order to prevent risks in the hospitality industry.
False
All types of special events are appropriate for commercial sponsorship sales.
False
Although it is not illegal and not a preferred practice in the event industry it is acceptable for an event manager to only offer bottled water for sale at an event and have no other drinking water available for free at the event.
False
Event managers are not responsible to provide free and accessible drinking water at all special events. In other words, it is an acceptable practice to have bottled water only for sale and have no other drinking water available for free at the event.
False
Events that occur in the USA must comply with the Americans Disability Act only if the guest list includes an individual that is disabled.
False
It is not possible for a special event to establish a brand name.
False
Not every special event requires a contingency plan.
False
Public health and safety is a speculative risk in the hospitality industry.
False
Risk management is a function that is carried out after an event has been conceived, designed, and organized
False
T/F Risk management is a function that should be carried out by the event management team after the event has been conceived, designed, and organized.
False
T/F There is no difference between a license, waiver and contract.
False
T/F There is no difference between laws, codes and regulations.
False
The definition of "risk" indicates that a risk only will have unfavorable outcomes.
False
There are no significant differences in different types of event that will influence the scope and types of risks that need to be managed. In other words, every event has basically the same risks.
False
There are some special events that are considered completely risk free.
False
T/F Sponsorship fulfillment and the sales of sponsorships would fall under the EMBOK Model domain of administration.
False (marketing)
On October 9th, 2013, twelve people were stuck for three hours on the Rip Ride Rockit roller coaster at Universal Orlando that malfunctioned in the vertical position (17 stories up in the air). According to the Orlando Fire Department, a technical glitch forced the ride's safety features to lock in place leaving the 12 people suspended in a vertical position on the way up to the top of the roller coaster's first big drop down hill. In order to rescue the people the car was manually moved to a horizontal position at the top of the ride and then passengers were able to use emergency elevators to get them down to the ground. This _______________ is a formal record of agreed procedures and routes for an emergency exodus from a site.
IS NOT Emergency action plan
The Winter Park Sidewalk Art Festival is one of the nation's oldest, largest, and most prestigious outdoor art festivals. As the event risk manager, you are responsible for all related emergency management issues that may occur during the event in order to protect the 350,000 visitors enjoy the show over the course of the weekend. A black suitcase/carrier is reported as being left unattended in the middle of the road. You suspect that it may be an artist's bag that was inadvertently left behind. However, according to your _____________ you must follow the appropriate formal record of agreed emergency management roles, responsibilities, strategies, systems, and arrangements with the local police to ensure that no danger comes to people with a potential explosive in the suitcase.
IS NOT Emergency contingency plan
An outdoor wine festival is cancelled due severe weather conditions (i.e. hurricane warnings). Many of the event attendees pre purchased tickets online through the event website. The fine print in the purchase transaction says that if event cancellation occurs money will be reimbursed for the cost of the ticket. How can the host of this event afford to do this when there are fixed costs associated with the event that must be paid regardless of if the event takes place or not?
Insurance coverage
If an event manager or hospitality manager fails to do something or does something in connection with one's implicit or explicit duties that results in injury or harm to others, that person or entity is open to a civil lawsuit to recover damages or may be subject to criminal prosecution.
Liability
The industry sector including meetings, incentives, conventions and exhibitions
MICE
Creating event promotion ticket sales (e.g. discounts) with the intent to increase event revenues would be a risk associated with which EMBOK Model domain?
Marketing
The __________ domain in the EMBOK Model includes risks that may be associated with advertising to prospective event attendees that are from specific target markets.
Marketing
__________ is the failure to exercise the degree of care, by act or omission, that would be considered appropriate by a reasonable person under given circumstances.
Negligence
The goals of risk management include the protection of assets, legal and financial liabilities, potential loss, manage growth, and to
Operate responsibly
The _________ domain in the EMBOK Model includes risks that may be associated with selection of the appropriate event venue (location) for an event.
Operations
____________ rates risks according their likelihood of occurring and the consequences or impact that could occur.
Probability severity matrix
An uncertain event or condition that, if it occurs, has a positive or negative effect on an event's objectives
Risk
The __________ domain in the EMBOK Model includes risks that may be associated with security and emergency management for a rock concert that has a high chance of a mosh pit (i.e. excessive pushing) occuring at the concert.
Risk
_________ is any condition or occurrence that might affect the outcome of an event or event activity and might expose an event organization to loss measured in terms of probability and consequences.
Risk
The purposeful recognition of and reaction to uncertainties with the explicit objective to minimize liabilities and maximize opportunities
Risk Management
The individual responsible for the assessment, response, selection, monitoring, communication and documentation of risks and control measures for an event.
Risk Manager
The purpose of __________ is to provide the structure for making decisions based on realistic assumptions and accepted methods, incorporating best practices and the lessons learned from previous endeavors to achieve maximum benefits. It may be defined as the development and maintenance of a systematic and continuous approach for identifying evaluating, handling, tracking, documenting and communicating risks.
Risk Planning
_____________ is the process of examining identified risks to determine causes and relationships to other risks, define the risk in terms of probability and consequence, and prioritize the risks to be handled. There are numerous tools and techniques that can be used in this process including: cause/effect analysis, constraint analysis, decision tree analysis, fault tree analysis, etc.
Risk analysis
The event elements or processes that may contribute to bringing about any given result or occurrence
Risk factors
You and your friends decide to treat yourself to a cruise to the Caribbean this upcoming spring break to kick back, relax, enjoy the sun, sand, and sea. One of your friends has anxiety and fear of the ship sinking and there not being enough life boats for all of the passengers (similar to the experience of the Titanic). You tell your friend not to worry because actually after the 1914 Titanic disaster, _____________ was developed as an international maritime safety treaty to help guarantee the safety of cruise line passengers aboard ships.
SOLAS
All people entering the Olympic Games venues are required to pass through one of the "Mag and Bag" security inspection checkpoints. This includes all spectators, athletes, coaches, volunteers, employees, contractors, officials, and dignitaries. This means that all people entering the Olympic Games venues are required to walk through metal detectors and submit their bags and any containers to a physical search to prevent prohibited items from being carried into the venues. All spectator tickets included this information and requirement in its instructions and recorded announcements reinforced this procedure as people approached venue entrances. Which functional area of the EMBOK model does the Mag and Bag process fall under?
Security management
As the director of special events for a prominent golf course in Miami, FL you decide that you would like to sell a "Hole in One" sponsorship for an upcoming celebrity golf tournament. The prize will be $100,000 to the golfer that actually hits a hole in one. The odds are not likely that any golfer will win the hole in one but if you sell a sponsor on the hole the event may benefit at least $10,000 from the sponsorship sale. This is an example of what kind of risk?
Speculative risk
Using the above information regarding the Olympic Games Mag and Bag security process, what would happen if a spectator who purchased a ticket refused to go through the Mag and Bag security process?
The individual would be asked to leave the venue because the purchase of a ticket is considered a contractual agreement.
When considering an event's intent, extent, and content which of these event aspects would you consider the most critical in identifying potential risks? Explain why you feel this aspect would be the most critical in identifying risks.
The most critical of these three when identifying the potential risks is the content of the event. If you can understand the the event elements and components desired of required to meet the goals and objectives then you can understand what you may need to consider when it comes to potential risks.
__________ a wrong or harm other than breach of contract.
Tort
A commercial sponsorship is a contract between the event organization and the sponsor.
True
Public relations is perceived to be an unbiased communication source for a special event.
True
T/F Music licensing would fall under the EMBOK model domain of the risk domain.
True
T/F One of the most common copyright and licensing issues affecting the event's industry is music licensing. It is the host's responsibility to pay fees not the facility or the entertainer to obtain copyrights for the music used as a performance at an event.
True
T/F There are different forms of legal responsibilities that reference different types of liability.
True
T/F There is a difference between a contract and a waiver.
True
When developing a risk response plan event managers should address all of the following questions except: Will the risk be an absolute or speculative risk? Where does the risk fit into the overall plans and what is its effect on other risks? Who will be responsible for monitoring the risk and implementing the response? What is the definition of the risk, its priority, and what corrective action is to be taken?
Will the risk be an absolute or speculative risk?
You are the lead corporate event director for the upcoming presidential inauguration speech. There are numerous supplies that will need to be outsourced in order for the event to be executed. Every supplier that is hired will need to meet specific requirements including insurance for all types of contracting in order to guarantee that the event has high security. You will need to hire a manager to assist you with ensuring that all suppliers are within the compliance and code that is required by the government, the facility, and public statutes. What type of a manager would you need to help you with these tasks?
Wrong: procurement manager
Recently, a Royal Caribbean cruise ship that arrived to Ft. Lauderdale, FL had one of the largest outbreaks of the norovirus. The norovirus is a virus that results in severe vomiting and diarrhea that is extremely contagious among people. Health inspectors found multiple sanitation violations in the kitchen on the cruise ship. Is this an example of a public health issue?
Yes, because public health legislation seeks to ensure a sanitary environment and the control of infectious disease
You are the promotions and event manager at a night club in downtown Tampa, FL. One of your employees (e.g. bartender) comes to you and complains that she feels like she is developing hearing loss because of the loud music in the night club. You disregard her complaint as being anything serious. You do not feel that the business can be at fault for hearing loss because of loud music - after all, it is a night club and all night clubs have loud music! Could the night club be at fault if the employee gets medical documentation indicating that she was exposed to excessive noise exposure at work?
Yes, under the regulations of the Occupational health and safety standard regulations
You are the event risk manager at Amway Center in Orlando, FL. During an Orlando Magic basketball game you receive communication that the fans are becoming excessively rowdy in section 233 (seats 65-80). You then receive communication that the rowdiness is progressing to aggressive level. No fight has yet broken out in the stands. This is an example of _________.
a crisis
A risk with no possibility of a gain.
absolute risk
In Tegucigalpa, Honduras during a LMFAO's concert an electrical fire broke out during their live stage performance of the hit song, "Party Rock'in". The fire started because of faulty wiring under the stage. Luckily none of the concert attendees suffered major injuries. However, several of the concert attendees were treated for smoke inhalation. What type of risk is this an example of?
absolute risk ?
The host committee for a large fund raising event is given the pro forma budget that includes all expected financial projections. The committee is also in charge of acquiring local sponsors to increase the amount of money that is raised for a non-profit agency. The host committee does not understand its financial limits and continues to enter into contracts and make purchases that extend beyond the projected event expenses. The committee over spends by 15%. What risk domain was not properly managed?
administrative
You are the event risk manager at Amway Center in Orlando, FL. During an Orlando Magic basketball game you receive communication that a child is choking in the stands. A medical team arrives to the child and performs the heimlich maneuver to save the child's life. This is an example of ________
an emergency
A ___________ is an agreement between two parties, specifying what will be done or given (the offer), what will paid or given in return (consideration), and the acceptance of the terms and conditions set forth in the agreement.
contract
On October 9th, 2013, twelve people were stuck for three hours on the Rip Ride Rockit roller coaster at Universal Orlando that malfunctioned in the vertical position (17 stories up in the air). According to the Orlando Fire Department, a technical glitch forced the ride's safety features to lock in place leaving the 12 people suspended in a vertical position on the way up to the top of the roller coaster's first big drop down hill. In order to rescue the people the car was manually moved to a horizontal position at the top of the ride and then passengers were able to use emergency elevators to get them down to the ground. This _______________ is a formal record of agreed procedures and routes for an emergency exodus from a site.
evacuation plan
You are the concert/event manager for Mardi Gras at Universal Studios. You witness a guest trip and fall over a curbside in a crowd of people. You immediately stop to ask if the person is okay. They tell you that they are fine; however, you suspect that they may actually be slightly injured with a sprained ankle. They decline medical attention. You notice while talking to the guest that their speech is slurred, they are having a hard time walking straight and smell of alcohol. In order to avoid a potential claim or lawsuit later from the guest seeking medical expense coverage you complete a(n) ___________.
incident report
In order to determine an event's scope it is important to first determine what is the event's _______, ________, and _________.
intent, extent, content
A meeting planner that is in breach of a contract with a hotel for not meeting the required minimum amount of room night sales (i.e. meeting attendees staying over night in the hotel) may be required to pay ____________. These are negotiated financial penalties to be paid in the event of a breach of contract which includes attrition clauses.
liquidated damages
An event's schedule should consider the flow of crowds. This means that flow planning should be used which considers peak flow periods in the agenda of activities. This minimizes crowd congestion. Which domain and functional area would this be a part of?
operations domain, attendee management
MegaCon, short for Mega Convention, is a large multi-genre convention that caters to the comic book, sci-fi , anime, fantasy, and gaming communities, occurring between late February and early March at the Orange County Convention Center in Orlando, FL, USA. The event typically attracts more than 70,000 attendants. Due to the large size of the convention it is recognized as a citywide event. This means that the event passes a certain threshold of significance for the city and therefore the Orlando Orange County Conventions Visitors Bureau (OOCVB) takes a public interest stake in the convention. In this situation, what would the OOCVB be referred to as?
secondary stakeholder
A risk with the possibility of loss and a possibility of a gain
speculative risk
Assume that you are the marketing director for this year's Super Bowl Campaign, one of the largest mega events that occurs on a worldwide scale. You and your marketing team have been exploring opportunities for new potential market growth through acquiring/penetrating new market segments. One of the new market segments that you have forecasted to be profitable is that of "women." You anticipate that women who are football lovers are just as likely to buy Super Bowl tickets as men who are football lovers. You also anticipate that women who buy Super Bowl tickets are more likely to buy merchandise at the game than men thereby making women a profitable market segment. However, because there is an associated cost with creating event promotions that will stimulate the interest from a new market segment (i.e. women who love football) to buy game day tickets there is a risk if your marketing team is wrong. What type of a risk is this an example of?
speculative risk ?
Daytona Beach residents have recently began to complain that they are unhappy with the amount of tourists and visitors that come to the Daytona area for special events such as Speed Week, Bike Week, and Spring break all within a short period (two month time interval). An issue like this can be addressed by event professionals through ___________.
stakeholder management
When considering the cleanliness and hygiene of a special event site it is important to consider the sanitary facilities (toilets) in terms of the sufficient numbers to accommodate the event attendees. As the event manager, you should consider all of the following as factors in deciding how many toilets you need except
the season of the year
A critical factor to consider when developing crowd management strategies for an entertainment and leisure event is ___________.
the target market's characteristics (e.g. demographics and pyschographics)
A ____________ is defined as the intent or capacity to cause loss of life or create harmful consequences to human welfare, endanger the supply of essential services and supplies, cause severe damage to property or the environment, or jeopardize national or personal security.
threat
Not all special events are appropriate for sponsorship.
true
Insufficient promotion, market saturation, lack of media coverage, publicity stunts, and craze marketing are all examples of __________.
typical marketing risks for an event
Overtime labor costs, cleaning fees, gratuities, mileage reimbursements, unforeseen equipment rentals are all examples of _______________.
unanticipated costs
How many functional areas does an event or hospitality manager have to consider as potential areas that risk could occur in business operations?
wrong: 5
Many event planners have adopted radio frequency identification technology (RFID) to provide them with information regarding the people who attend their events. RFID technology uses chips (tags) encoded with information that corresponds with an attendee's registration file. The technology gets event attendees through the entrance gates/admission process faster, collects extensive data on attendees concerning their purchases made with credit cards at an event, collects contact information of attendees, and allows vendors to have a deeper marketing analysis of the event attendees. What liability issues might this form of technology present for event planners?
wrong: Compliance management
A clause pertaining to ____________ should be in all contracts specifying under what conditions either party may cancel the contract without liability.
wrong: Force majeure
Even after all necessary prevention tactics and risk control strategies are developed and used to protect an event's assets it is still possible that financial loss could occur. This is an example of a(n) __________________.
wrong: absolute risk
Public relations activities focus on image building, awareness, and issue management issues. Therefore, it is important for the event management team to develop governmental, community, and public affairs relations in order to determine issues and trends that may effect the event objectives from materializing. This indicates that there is an overlap between public relations strategies and _____________.
wrong: administrative management
A parasailing company that takes two teenage girls up in flight right before a storm hits thinking they can get the girls' sail in before the storm and make extra revenue but then the girls get hit by a gust of wind resulting in the line snapping and causing severe injuries to the girls is most closely related to which EMBOK model functional area going wrong?
wrong: decision management
Public relations activities focus on image building, awareness, and issue management issues. Therefore, it is important for the event management team to develop governmental, community, and public affairs relations in order to determine issues and trends that may effect the event objectives from materializing. This indicates that there is an overlap between public relations strategies and _____________.
wrong: human resource management
According to the Sports Business Journal, McDonald's, paid close to $200 million for the eight-year, four-Olympics sponsorship deal that included the Sochi Games. The chain is one of 10 exclusive partners in The Olympic Partner (TOP) program. This means that McDonald's is the official restaurant sponsor of the Olympic Games. Subway ran an ad campaign using Olympic athletes (i.e. swimmer Michael Phelps, boxer Mike Lee, gymnast Nastia Liuken, speed skater Apolo Ohno standing in front of a Zamboni, an anonymous snowboarder above a mountaintop half-pipe, a pair of figure skaters, and then Australian snowboarder Torah Bright standing in a lodge somewhere). Through use of Olympic athletes in Subway's commercials, Subway managed to create an association with the Olympic Games without paying millions of dollars to purchase a sponsorship. What is this an example of?
wrong: market affinity
Many street festivals/block parties require the event organizer to obtain licenses and/or permits in order to hold any activities on a public street. Licenses and permits are considered an important part of _____________ in risk management.
wrong: procurement management
You are the lead corporate event director for the upcoming presidential inauguration speech. There are numerous supplies that will need to be outsourced in order for the event to be executed. Every supplier that is hired will need to meet specific requirements including insurance for all types of contracting in order to guarantee that the event has high security. You will need to hire a manager to assist you with ensuring that all suppliers are within the compliance and code that is required by the government, the facility, and public statutes. What type of a manager would you need to help you with these tasks?
wrong: risk manager
You are the event manager for Anthrocon, which is the world's largest convention for those fascinated with anthropomorphics, which are humanlike furry animal characters. You would like to play popular music from today's top 40 hits at your event. Do you need to obtain a music license to play today's most popular hits?
yes
