Introduction
Risk Management involves a systematic way of context establishment, identification, analysis, monitoring as well as communication of any risks that could be associated with processes, functions or activities. It minimizes an organization’s losses while at the same time maximizing its opportunities. It helps in identifying opportunities and mitigating the losses. In event management, each part has its own potential risks.
In order to manage any event effectively, risk management is necessary. There seems to be an increase in the number of events being carried out around the world and governments and other stakeholders are taking it upon themselves to adopt the appropriate risk management measures.
Early preparations and putting the necessary risk management measures in advance seems to be a signifier of competence and professionalism while inadequate preparation is a sign of incompetence (Aaker 1987, p. 44). With the increase in the size and number of events across the globe, risks have equally increased and they have even become more complex. Any shortfall at an event is usually captured immediately by the media and it could result to a negative public image Risks and Consequences
Risks Identified and Their Analysis
In the case study of the Battle of Trafalgar’s anniversary, there are several risks which the event was prone to. The anniversary was prone to administration risks given that there were various stakeholders involved in the preparation of the event.
There were different contracts taken and various goods were supposed to be purchased for the anniversary and different services needed to be hired. All these implied that contracts were to be secured on time, goods, and other facilities bought at the right time and using the right procedures. Licenses and permits for instance had to be secured in time.
They play a big role in accountability and transparency. The relevant authorities were supposed to be informed and permission for the event granted. They also help to minimize fraud and hence saving the management the losses that would occur. Service providers, the suppliers and other participants were supposed to carry out their activities in a particular way. Control measures were elaborate with the suppliers and other participants being required to go through all the required procedures.
The other risks would come from the Public relation/marketing sector. It is common for the promoters of such an event to ignore the consequences of their promotional activities and just focus on optimism. This would be dangerous as they might not take the appropriate risk management measures and the effects might be catastrophic.
There was therefore a need to control the marketing and promotional activities balance between the promotion and the potential risks associated with it. It might also occur that a lot of funds might me channeled towards promotional activities hence causing budget deficits.
Over promotion and marketing of the event would most likely have resulted to excessive attendance as more people were likely to attend than actually budgeted for and the end result would be a strained budget hence leading to budget deficits. The event was supposed to be celebrated with a difference as other nations were involved as well. The implication for this was that the number of attendants was supposed to increase. This would mean that the budget for the event needed to be raised.
The other risk that the event was prone to is that relating to the health and safety. This requires extra attention in the risk management process. The risk management strategy in this case involves plans to prevent loss and take the appropriate safety control measures. The hygiene of the venue for the anniversary was supposed to be improved given that the event was supposed to have so many participants.
Health induction measures were supposed to be taught to the workers and suppliers who would otherwise run their own activities without any formal instructions from other practitioners (Barton 1988). The anniversary was meant to involve several events on land, sea and the air, by the military. The appropriate mechanisms were therefore supposed to be adapted to ensure the safety of those participating in these events as well as the spectators.
The event was also involving vessels that were nuclear powered. Safety measures this would pose very serious health risk in the case of a leakage of nuclear emissions from such vessels or even in the event of an accidental explosion. This therefore meant that the appropriate safety measures were supposed to be adopted and the relevant practitioners involved while dealing with such an emergency.
The event was also prone to security risks. An effective risk management strategy was supposed to be employed so as to ensure that the place is secured. Among the invited were dignitaries from the close allies of the country with Queen Elizabeth II as the guest of honor. This meant that the security risks would be higher. Appropriate security measures were therefore supposed to be adopted. On-the-ground safety officers proved to be of a great importance in such a case.
The ceremony was supposed to commemorate those who died in the battle with very symbolic representations. There was a likelihood of such an event being prone to confusion due to the multiple tasks and activities that were going to take place.
This implied that the activities were supposed to be appropriately structured and ensure that there is order in every part of the ceremony with every activity allocated its own time (Abbey 1983). Given that the many people were expected to attend the ceremony with several dignitaries as well, the venue was supposed to be chosen carefully in order to carter for the many attendants. The standard of the venue was also not supposed to be compromised.
The event was supposed to pose several logistical coupled with planning challenges. Controlling the large crowds was not going to be anything easy. Vessels were to be transported from various places to the venue of the event and anchored safely and securely at the same time.
This would be an expensive endeavor. The weather would easily inconvenience such an event. Appropriate measures would therefore be needed so as to tackle any climatic challenges. In the event of rain for instance, provisional shelters would be needed. Provisional or extra toilets would also be required so as to carter for the multitude of attendants.
Importance of the human side of risk management
Risk management is very important due to various reasons. The planning and the hardworking that is channeled towards risk management are never in vain. The planning makes it possible for a variety of events to be carried out in a systematic manner and this leads to the satisfaction of the public as well as the guests as it was in the case of the battle anniversary.
It also results in maximum attendance of those invited and other participants, given the fact that the event is marketed appropriately. Appropriate risk management also results in the strengthening of relationships and making of new ones. In the case study of the anniversary of the Trafalgar battle for instance, Britain invited representatives of its allies and other nations as well, some of which were its former foes like Spain and France.
Human Side of Risk Management is also vital in boosting an organization’s, countries or the event manager’s image due to the high media profile of that particular event. A successful event is usually perceived as a sign of professionalism.
Different stakeholders are in a position to achieve their intended personal objectives and each stakeholder will tend to be satisfied with the outcomes as it was in the case of the anniversary (Carlson 1999, p. 55). In the case of a country, a success in an event may boost the country’s profile and this would result in increased tourism within that region and hence earning the country the much desired foreign exchange.
This kind of Risk management also minimizes incidences of risks accidents or injuries. The relevant medical practitioners are consulted and if possible invited so as to deal with any incidences of injuries or accidents during the event. First Aid equipment may also be availed so as to deal with injuries and accidents before the appropriate medical assistance is given to the victims.
Risk management during the anniversary for instance helped in preventing major casualties. It reduces the strain that could be directed towards the health and emergency services within that area. The cost of the health and emergency services is usually included in the event’s budget hence no need to strain local facilities that may even not be in a position to carter for all the people in the event of an extensive disaster. This was the case during the preparation for the event.
It ensures that safety is considered right before the event hence saving money, resources, time and it also saves people from grief as appropriate measures are taken in advance so as to deal with any potential issue that could emerge. Through risk management, the appropriate safety coordinator is appointed depending on the size of the event (Cataldo 2003, p. 43).
He/she is the one that spearheads the safety agenda, the bigger the event, the greater the need to have more specialized personnel. Risk management helps in eliminating the stressful and expensive last minute rush by helping the people to plan ahead.
This kind of Risk Management also helps in vetting the service providers and it helps in downsizing the workforce yet ensuring that the quality of the desired results is not compromised. In the case of the T200 anniversary for instance, the specialist’s activities had to be coordinated, various specialists were needed although their activities were supposed to be filtered and also coordinated.
The contractors were vetted, their taskforce downsized and their activities closely monitored. This help in the efficiency. The risk management helps in ensuring extensive consultation with the stake holders. The relevant civil authorities are consulted within time and hence help in the identification of shared objectives through effective communication.
The process also helps in developing a robust command structure which enhances effective communication and hence the capability to link up with other sources of help from the outside. With a good command structure, the decision making process usually becomes simplified (Davila 2004, p. 200).
It helps in ensuring that the relevant staff is involved at all levels hence ensuring effectiveness and efficiency (Nutt 1986). It helps to ensure that all the possible risks are put into consideration without concentrating on bigger ones and ignoring the smaller ones which are even more likely to happen than the bigger risks.
Other Risks and Their Effect to the Safety
The administrative, marketing and financial areas were also prone to certain risks that could easily trickle into the safety of the event a good example being fraud. Given that the whole process involved various stakeholders, issues of fraud could be eminent in the whole process.
Some of those put in leadership and supervisory positions may for instance involve themselves in fraud dealings like awarding tenders to unqualified suppliers so as to get some financial benefits from the same. This would compromise the safety of the event as some of the safety equipment bought may be of law standard hence putting the participants at a great risk.
The event was also prone to misrepresentation by promoting or marketing it excessively. Over promoting the event could have resulted in the number of attendants exceeding that budgeted for hence causing a strain to the finances allocated for the event. The promotion also requires a lot of resource allocation for its activities.
Excessive promotion of that event could have resulted to the attraction of many people with different motives some of which could be terrorist attacks or disruption hence jeopardizing the safety and security of the whole event. This would in the end result event’s objectives not being fulfilled. Through risk management, such problems were meant to be spotted and appropriate measures taken to avoid any inconveniences caused by such risks.
The general excitement of the people coupled by the large number of attendants and equipment could as well have been causes of potential hazards and the appropriate measures were to taken to prevent such risks. The food and sanitation at the event was also very vital given that such an event with numerous people was prone to venders selling unhygienic foodstuffs. This might be a potential health hazard.
There was therefore need to ensure that foodstuffs that are not hygienic are not allowed at the event (Davis 1949, p. 333). The toilets and latrines needed to be hygienic and able to accommodate the large number of attendants. The event was also likely to witness noise pollution due to the large number of attendants. Measures were therefore supposed to be taken so us to minimize the problem.
The financial area was also likely to witness some irregularities particularly at several cash points which could be potential attractions for thieves, robbers or fraudsters who may want to benefit from the cash being collected. There was therefore a great need to beef up the security of such points, putting trustworthy and accountable people at the place.
Table Top Excises and Scenarios in Risk Prevention
Risk management is effective when it is accompanied by transparency and accountability so as to fulfill the desired objectives. In the current risk management process, all the activities and endeavors are made formal so as to enhance the transparency and accountability.
The risk management process must be seen working throughout the process (Fennell 1984). In the case of the T200 anniversary risk management process for instance, the process was involved a lot of documentation and verification. Service providers were supposed to verify that they were in position to offer services of the required standard. Even contractors were vetted to ensure that they meet the set standards.
Such transparency and formality helps in reducing cases of fraud and ensuring that only qualified personnel are selected for the appropriate tasks in the risk management process. The screening of contractors and other service providers help in ensuring provision of quality services and acquisition of quality equipment as well.
There are several scenarios, which can be used in the prediction and avoidance of risks. Some risks usually context dependant and they are only unique to certain events. After such a risk has been well understood, the appropriate action is decided upon so as to mitigate it.
Given that the occasion was supposed to involve people from different nationalities and in large numbers, there could be a potential terrorist attack. This is also owed to the fact that terrorist activities are usually eminent in populated areas and surprisingly most of them are usually aimed at western countries (Kelman 1989, p.100). The security was therefore supposed to be beefed up and using weapon detectors at the entrances to the venue of the event.
In such an event with various parties from different countries, there could be conflicting interests, which if not well handled could lead to confusion and dispute. The end result could be disagreement and disruption of the flow of events during the occasion. The objectives of the event might then not be met given that most of the time would be used in unending arguments. There was a need therefore to employ a conflict resolution taskforce to be on the standby and come in when such a situation arises.
The issue of the Master of ceremony (MC) is also crucial in such gatherings. A Master of Ceremony who might be inexperienced, impolite, illiterate, untidy, and excessively dominant could be a disaster in such a gathering (Ferlie 2005, p. 99). There have been some cases where the Master of Ceremony fails to turn up hence leading to confusion in the event.
In such a case, the appropriate persons should be consulted on time and screened to ensure that they can perform. There needs to be several qualified M.C.s so that in the event that one fails to turn up or fails to meet the expectations then, the other one should be able to take over.
Such an event is also prone to problems of fund collection. The fund collection activity is likely to be prone to fraud and cases of theft. There is therefore a great need to put an effective fund collection procedure which can be effectively accounted for. Only trustworthy staff members should be put in charge of the whole activity. The collection point should also be staffed with the relevant security personnel so as to tackle the cases of burglary.
Given that such an event involves very many attendants, it might not be easy to approximate the number of attendants. It is possible for the number of attendants to supersede the approximated number hence causing a strain to the budget. A deficit in the budget may be a hindrance to some of the events activities being carried out.
Prevention and Contingency Plan
A Possible major risk in this event would be that of a fatal accident. A plan that is detailed and contingent needed to be developed so as to deal with the same.Using the SWOT analysis, the risk of a fatal accident could be curtailed using the appropriate measures.
The SWOT Analysis
The SWOT analysis could be very relevant in dealing with the possibility of a fatal accident. In this kind of analysis, several aspects are analyzed in relation to the possibility a fatal accident occurring. The strategy aims at looking at the Strengths, the Weaknesses, Opportunities and Threats that could emerge in the process while trying to mitigate the possible risks of the event.
Strengths
The some of the strengths would include the availability of the right personnel to deal with the possibility of a fatal accident, availability of high quality equipment that would be of great help in dealing with the possibility of such an accident and the following of the right procedures in mitigating the problem. The venue was also strategically placed for ease in mitigation.
Weaknesses
Some of the possible weaknesses would be the negative publicity of the event by the media, particularly those of the countries that are Britain’s adversaries hence increasing the possibility of a terror attack. The event is other weakness would be fraud particularly in the acquisition of the required equipment and tendering which would lead to poor quality services and equipment. The excessive promotion of the event could be another weakness with its own disadvantages.
Opportunity
Some of the opportunities available include advancement in technological innovations and their inclusion in making the event a success. The other opportunity includes the possibility of increasing the number of the countries allies hence making the event more successful especially in the provision of first aid services and equipment as well as services.
Threats
Some of the possible threats for the event would include the possibility of terror attacks. Given that the event was over marketed, the event was likely to witness an excess in the number of attendants and in the event of a fatal accident, the number of casualties would be more than that planned for hence causing a strain on the budget as well as the medical facilities and services available.
The table below gives a SWOT analysis for the event
There needed to be a comprehensive plan or workable alternatives to be integrated in prevention or minimization of the possible risks that would occur. This comes after risk analysis. The appropriate contingency plan containing the appropriate response to the risk’s impact would involve procedures of decision making, an effective chain of command as well as coupled with appropriate cause of action.
There was supposed to be effectiveness in the decision making and organization of the event. Control needed to be exercised on the people, the transport system both for the public and air space. The service providers needed to be qualified and the services and other suppliers were supposed to meet the set standards. Tendering and contracting processes demanded that the contactors produce not only the health but also the safety plan. These issues were dealt with in advance.
The tasks to be handled were enormous and complex. The safety personnel on the ground were supposed to ensure the safety of the participants, guests and spectators and their coordination was very vital.
Cooperation between the local authorities and the relevant international practitioners was very vital in ensuring the safety and success of the whole event. The planning was carried out at all levels and the relevant staff and contractors were involved at these levels. Potential risks like typhoons, and terror attacks were planned for in advance (Baum 2001:88).
A safety-working group was supposed to be established so as to coordinate the health and safety issues. Specialists from particular subject areas were involved in the task and they were from various disciplines. This enhanced the division of labor as every group concentrated on its own activities.
The safety working group enhanced the coordination of the planning group as they enabled the exchange of ideas to be easy. The group enhanced a relaxed working environment. They briefed the major staff members on various aspects of their duties and did the analysis evaluation of the respective groups.
Recommendations
Such an event poses a big threat not only to the participants and attendants but also to the entire nation. As such, several recommendations should be considered for future events. Planning for such kind of an event should involve top security personnel both at the local and international level.
Thus will help detect and counter potential threats. A rehearsal should be done well in time to allow the planners enough time to incorporate necessary changes. Planning for the even should star well in advance and should incorporate a thorough training of all personnel involved in the execution process.
Training should also involve training the planers themselves. Recruitment of personnel is a crucial matter. For such a magnanimous event, the planners should consider recruiting people who have been involved in planning and execution of big pubic events. Marketing should be controlled in such a way that it would be possible to arrive at a rough estimate on the number of people that might attend and thus avoid budget constrains in the event of an over attendance.
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