Transcript Slide 1

International Congress & Convention Association
Risk Management:
Top Ten Tips of Risk Management
Practical Issues and Solutions
ICMS Case Study
45th ICCA Congress & Exhibition
Date: Monday 30th October 1600 - 1730
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Top Ten Tips of Risk Management
Mark Blair – Sales and Marketing Manager
Insurex Expo-Sure, UK
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Topics to be covered
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Introduction
UK Industry Survey
What is Risk Management?
Top Ten Tips
Crisis Management
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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?”
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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
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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
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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
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The 4 Quadrants of Risk
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Strategic Risk
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Why are we holding this event?
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Who is responsible for what element of cover / protection?
Operational Risk
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How do we handle an incident at the event?
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What happens if the venue is not available?
Financial Risk
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How many attendees do we need to have to make a profit?
Hazard Risk
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Fire / terrorist incident
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Slip / trip / fall by visitor
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Food poisoning
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Top Ten Tips
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Talk to each other – agree each party’s action points
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Consider the Strategic Objectives
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Why is the event being held?
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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
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Frequency versus Severity
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Prioritise the list
Can any of the Top 10 risks be transferred?
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Top Ten Tips
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Agree a “Risk Management” strategy
• Outside consultants needed?
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Crisis Management Plan needed?
• Dovetail in with DRP of the venue
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Protect the “Brand” of the event
• Media communication Plan is essential yet
often forgotten
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Top Ten Tips
8.
Test the plan
• Desk top walk through at the least
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Risk Assessments
• Make special provision for casual or voluntary
staff
10. Documentation is essential
• If it is not written down it did not happen!
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Relationship between Risk Management
and Insurance
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You can only look to transfer your risks when you
understand what they are
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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
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Majority of events are not insured
– Lack of understanding?
– Informed decision?
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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
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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
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Risk Management
A 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
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Risk Management
A 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?
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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
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ICMS Head Office Melbourne,
Australia
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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
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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:
1. Identify
2. Analyse
3. Evaluate
4. Treat
5. Monitor and Review
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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
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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?
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ICMS STAFF
Sarah MarkeyHamm
National Manager
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Step 1 Identify Risks
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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 it’s
clients and stakeholders
From the small to the large
From the simple to the complex
From the obvious to the improbable
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Step 1 Identify Risks
Some Possible Risk Categories to Consider
Risk Categories
• Financial
• Economic
• Political
• OH&S
• Cultural
• Human Resources
• Environmental
• Legal
• Duty of Care
• Stakeholder
• Venue
• Equipment
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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
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An ICMS Stakeholder
Clive Scott
• General Manager
of Sofitel
Melbourne
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An ICMS Stakeholder
Frank Mohren
• Director of
Operations
• Melbourne
Exhibition and
Convention
Centre
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An ICMS Stakeholder
Joel Cooper
• Exhibitions
Manager
• Harry the
Hirer
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An ICMS Stakeholder
Tracey Crosling
Sales Manager
Victorian Racing
Commission
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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
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ICMS STAFF
Con Papadakis
Conference
Manager
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Step 4 Treat
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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
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ICMS STAFF
Patty D’Cruz
• Conference
Manager
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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
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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?
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Since 2001 ICMS has seen a steady growth in
business,
A business acquisition (Canberra)
Greater confidence in handling allegations of nonperformance – thus less fear of the litigious
environment
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ICMS STAFF
Barrie Markey
Managing
Director
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ICMS STAFF
Mirerva Keogh
Sponsorship and
Exhibition Coordinator
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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?
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ICMS STAFF
Abigail Krause
• National
Business
Development
Manager
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ICMS STAFF
Lisa McNaught
• Business
Development
Manager
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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?
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Risk Strategy Pros and Cons
Pros
Cons
• 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
• Needs to have total
organizational
commitment
• Needs to be driven
• Should not be ignored
once up and running
• Continually needs
updating and
reviewing
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Discussion Topics and Themes
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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?
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Evaluate last night’s 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:
1. Identify
2. Analyse
3. Evaluate
4. Treat
5. Monitor and Review
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International Congress & Convention Association
Thank you!
45th ICCA Congress & Exhibition
Date: Monday 30th October 1600 - 1730
www.iccaworld.com