Risk Management - Essay Example

Thus facility might be owned by local authorities or councils while the event might have a number of service providers such as medical and transport companies. The event must be executed in conformance with agreements signed with them. Next there is the inevitable risk of increasing costs as the project or the event gets under way. It’s financially sacrosanct to control the event’s costs within the budgeted limits. For example in the case of the above sports event the government might sanction limits on spending by local authorities.

If the event management company fails to identify the degree of risk associated with overspending then it’s bound to fail. Similarly insurance costs associated with the event must be controlled. This goal is of very critical significance for the successful implementation of the event. For instance the greater the element of risk associated with an event the greater will be the insurance premium to be paid by the company to the insurer (Bannerman, 2008). For example in times and places where there is tension taking tourists to a site would involve a greater degree of risk.

Thus in order to insure the tour, including the life and property (e.g. the bus) the insurer would demand a higher premium. Thus reducing the risk related premium as far as possible is an objective of the firm. Fifthly reducing over concern with risk is one of the goals in event risk management process (Williams, 1993). For example non-profit organizations have a tendency to reduce the risk element associated with event management by removing the anxiety of stakeholders. A non-profit organization involved in social welfare projects might plan an event like introducing a novel agricultural or farming technique to local farmers.

The anxiety about the degree of risk associated with the adoption of the new technique might in fact increase the level of risk. Sixthly the organization must take into consideration the social