Risk management is the term applied to a logical and systematic method of establishing the context, identifying, analyzing, evaluating, treating, monitoring and communicating risks associated with any activity, function or process in a way that will enable organizations to minimize losses and maximize opportunities. (Lecture notes)Risk Management is also described as 'all the things you need to do to make the future sufficiently certain'. (The NZ Society for Risk Management, 2001)
The goal for risk management in the event industry should be to allow maximum range of activities to be enjoyed in a safe environment. The golden rule of risk management is to "approach event risk assessment and risk management from the perspective of audience and participant amenity". (Lecture notes) A successful risk management is one in which risks are continuously identified and analyzed for relative importance. The problems should be prevented before it happens.
The risk management also involves the duty of care. For event managers Duty of care translate to "Taking actions that will prevent any foreseeable risk of injury to the people who are directly affected by, or involved in, the event. (Lecture notes) Thus, Events managers have the responsibility of duty of care when the likelihood of a mishap happens to event staff, volunteers, participants, performers, audiences and even the public in nearby areas that is affected by an event
Before an event being held, the risk management team has to think about the possibilities of the risks, and prepare to handle it on that day. A 1991 USA survey of event managers have identified 10 risk factors at an event. They include sale and consumption of alcohol, size of crowds, over capacity of crowds, inexperienced organizers, poor or un ...