The Commonwealth Games brand at 'serious risk'

Australian and UK newspapers reported today that the image of the Commonwealth games could be in pieces in Delhi next year. The Commonwealth Games Federation president, Michael Fennell, has warned that unless the management culture and functioning of the organising committee improved significantly the ”Games will fail from an operational perspective”. He has reported to have written to the Delhi Games organizing committee saying unorganised preparations have put the Commonwealth Games brand at serious risk. Mr Fennell has insisted on an urgent meeting with the Indian Prime Minister, Manmohan Singh, to enroll his help with a ”recovery plan” for the Delhi Games, October 2010.

In the industry of venues, events and sports the most valuable yet most intangible asset is often their brand and reputation. Managing the real risks to brand and reputation should start in the board room long before the tickets for events are put on sale. By applying the principles of risk management to their reputational risks provides executive managers with a framework that can be used within the companies procedures and operations. This enables the company to manage and protect the enterprise from potentially foreseeable and unnecessary risks to their brand and reputation, of which they value so much.

Forklift Safety for Venues and Events

According to the National Occupational Health & Safety Commission, 200 deaths and 70,000 compensation claims involve workplace machinery, tools, appliances and equipment each year in Australia. Mobile equipment includes forklifts, cranes, and elevated work platforms. They require special licensing for operators, registration as mobile plant, and stringent operating procedures when in use. Public venue and event organisers regularly use forklifts for materials handling. This short video helps explain why a high level of safety awareness is important.

Educational Institutions and Reputational Risk

The Australian newspaper recently reported that the Indian student market is showing early signs of collapse, with the recruitment body IDP Education Australia reporting an 80 per cent fall in appointments by students at its 14 Indian offices. A severe fall in applications from Indian students for training diplomas and certificates would lead to widespread closures in the vocational sector of the type seen in Sydney and Melbourne over the past fortnight. IDP chief executive Tony Pollock yesterday conceded that a “head-count” survey conducted late last month had revealed an 80 per cent decline in visits from prospective students to the organisation’s Indian offices. The Indian market is the sector’s biggest growth area but is under threat amid the fall-out from a spate of assaults on Indian students and revelations that students are being exploited by unscrupulous private colleges and fraudulent agents.

These recent revelations demonstrate the implications of reputational risks that can affect educational institutions. Although some areas cannot be mitigated; an appropriate Risk Management approach to their reputational risk can assist a University or College in continuing to attract and retain overseas students.

Council Specific Risk Assessment Approach

As reported by the Age newspaper; a father who drowned trying to save his two young sons from drowning after they fell from a NSW south coast wharf has been recommended for a posthumous bravery award. In addition, the coroner investigating the deaths recommended the local council improve safety at Tathra Wharf, near Bega, in light of community fears another tragedy could occur.

A nearby fisherman, Robert George Brown, risked his life by also jumping into the water after the trio. In a statement tendered to the inquest, Mr Brown said he jumped in because there were no life-saving devices on the wharf. The magistrate’s at the inquest recommendation was that Bega Valley Shire Council be given copies of Mr Brown’s statement, police statements and Surf Life Saving NSW statements and a letters from Mr O’Neill’s family, which all addressed the safety issues on the wharf.

Bega MP Andrew Constance noted that he backed the bravery award recommendation and requested the NSW government to work with Bega Council to ensure a safety upgrade at the wharf. “Given the fact it’s now promoted as a regional tourist icon, all recommendations must be considered … be that railings, be that additional ladders … so that we can avoid any similar tragedy in the future,” he told reporters in Sydney.

As identified by Mr Constance the council owned area is a tourist attraction and should be risk assessed accordingly. Public areas require a risk assessment approach which specifically considers the unique challenges faced by councils.

To Mosh or Not to Mosh? : That is the Question

The risk of injury from moshing and crowd surfing at music festivals and concerts is well documented. Moshing involves close physical contact in the front of house area in front of a band: “the mosh pit.” Participants in the mosh pit push, pull, shove, slam and bounce off one another to the music. Crowd surfing involves passing audience members above the heads of other moshers toward the stage. Since 2000 moshing has been becoming increasingly less popular amongst public venues and music festivals because of its high risk of injury, and not without due cause. A study in 2000 conducted at a 4 day music festival, attended by over 60,000 people found that over 1,500 medical incidents were reported during the festival. The festival encountered numerous incidents resulting from moshing, crowd surfing and stage diving. 37 % of all incidents related directly to moshing. 2.5% of all treatments required hospital transporting, and of those, 74% were mosh pit related. (American Journal of Emergency Medicine 2000;18:62-63).

These statistics demonstrate the importance of strictly enforced risk management plans relating to the event and stage floor layout, and close consideration of the type of acts who are performing. It also highlights the importance of carefully planned medical care that is commensurate on the expected injury types and numbers.

Teenager Shot with Nail Gun

As reported by the The Age newspaper today, a teenager attending a trade school in Melbourne was accidentally shot in the back with a nail gun. Paramedics found the 18-year-old youth with a 4.5cm nail lodged into the centre of his back. Apparently, the accident happened as another student was firing the nail gun into a wall in a construction industries class. It was reported by paramedics at the scene that the nail inadvertently went through the wall then all the way into the youths back, at the middle around his spine. The student was taken to The Alfred hospital in a stable condition about 9.30am with the nail still in his back.

This incident raises the question of what Safety Management Systems are appropriate to implement in school venues? There are many precautions and safety procedures required for using powered equipment on construction sites. Given the age and relative inexperience of students, there are arguably even more risks that arise in a school learning venue when using similar equipment. While it is unclear as to the causes of this particular incident, safety procedures of the school should exist for all construction and maintenance equipment, particularly those that are powered. These should address the appropriate level of qualifications and experience of instructing teachers, site awareness, use of personal protective equipment, pre-start checks, instructions on loading and operating the equipment and relevant risks.

Published by Reliance Risk - the Risk Management Consultants

Children at Zoo Taken to Hospital After Chemical Incident

An incident on the 9th June involving school children on excursion to Dubbo’s Western Plains Zoo, highlights the importance of chemical safety and risk assessment for public venues and school excursions. The incident involved over 130 Sydney school children being taken to hospital for treatment after it was alleged rainwater mixed with disinfectants used to clean the students bicycle helmets, washed into their eyes. A spokesperson from the zoo was reported in today’s Sydney Morning Herald website as saying “we’ve used that agent for four years without incident … and we had other groups of children out in the rain this week.” The incident continues to be investigated by the zoo.

All chemicals should be used strictly in accordance with directions provided in the product’s Material Safety Data Sheet (MSDS). Risk assessments for school excursions should consider all foreseeable safety risks and medical response procedures.

Pigs and Crisis Management II

As reported by Department of Health and Aging on 4th June 2009, the total number of confirmed H1N1 09 (Human Swine Flu) cases in Australia has now increased to 633. The state of Victoria has over three-quarters of these confirmed cases and have subsequently raised its pandemic alert level from “contain” to a “modified sustain” phase.

Federal Health Minister Nicola Roxon is reported in the media to have stated that “Victoria is moving to a new level of risk”. Technically, this upgraded alert would enable government bans on public gatherings; such as sports events, entertainment venues, and community programs. However, the good news for the Venues and Events Industry is that the minister is also reported to have stated that the “modified sustain phase will not yet impact on public events and gatherings” She defended the decision not to cancel events, including the recent State of Origin game, confirming that she been advised that mass outdoor public events did not pose any particular risk.

Instead of the ban of events and public gatherings, Victorian authorities identified methods to manage risks appropriately. They have demonstrated this by targeting those people at highest risk such as children and elderly. Media have reported that hundreds of children and teachers who attended the recent State of Origin game in Victoria have been requested to stay home in quarantine for a week. Similar restrictions have already been in place for students and teachers returning from South America, North America and Japan.

To the delight of fans, the State of Origin game continued with appropriate controls which identified high risk patrons. This serves as a timely reminder that the events and venues industry is looking into the face of a crisis situation of a pending pandemic, however until then there are operational controls including provision of information, isolation of high risk groups and appropriately resourced medical response teams.

More information can be found at the following linked sites:

Work Cover link:
http://www.workcover.nsw.gov.au/OHS/WorkCoversRoleinOHS/OHSResponsibilities/Pages/influenza_pandemic.aspx

Office of Industrial Relations link:
http://www.industrialrelations.nsw.gov.au/Employers/Employer_responsibilities/Swine_flu_be_ready_to_deal_with_workplace_impacts.html

Department of Health link:
http://www.health.wa.gov.au/swine_flu/home/

Pandemic in Public Venues and Events

The Sydney Morning Herald (SMH) have reported that four more people who arrived on a Qantas flight from LA to Sydney have tested positive for Human Swine Flu (known as Influenza A H1N1). Australia now has a confirmed record of 50 cases of Human Swine Flu, with the figures doubling in the past week.
This total includes the positive test results of two children on board the Pacific Dawn cruise ship that has just arrived in Sydney. It is reported that during this outbreak: 130 other passengers were quarantined; the remaining 1800 disembarking passengers were asked to stay at home or in their hotels for up to seven days; and the ship eventually set sail 7 hours late with a whole new crew.The likelihood of an infectious disease shutting down your business may seem improbable. However, as seen in the recent reports there is the strong potential for businesses to have serious OHS and business continuity implications from such outbreaks.

During the initial Human Swine Flu out-break in Mexico, the Mexican government banned public events, issued advisories against gatherings across the country and closed schools nationwide. This move would have left the Venue Managers scrambling to reschedule and reorganize their events.

If Australia were to experience a Human Swine Flu Pandemic this could trigger the same cancellation of major public events and major public gatherings. The possibility of such measures was foreshadowed in last Saturday’s SMH.

Risks to the events and venues industries from pandemics, other natural disasters or medical incidents should all be included in the organization’s emergency management, crisis management and business continuity plans. An established and well communicated plan will prepare a venue to minimize disruption and resume business as early as possible.

Stay tuned for more risk management news.

NRL Sexual Misconduct Claims – Another example of Reputation Risk in Sport

More allegations of serious sexual misconduct have once again the potential to seriously damage the NRL’s reputation. In a difficult economic environment, allegations of group sex and sexual assault, as made in last night’s ABC TV program, Four Corners, may have serious implications for the game’s brand and de-tract from the value proposition offered to sponsors of the sport. Managing such crisis and events that seriously threaten one’s reputation is always difficult. Reputation is usually gained over time but can be dashed very quickly. Great care will now be needed to minimize the consequential loss resulting from the crisis. Reputational risk management is an area growing in significance in the sport, venues and events industries. When crisis management is poorly executed it can cripple an organization and its goodwill. An organisation’s reputation is arguably its most valuable asset and needs careful nurturing and effective risk management.

Brand, Reputation and Relationship Risk

Ask any CEO of a major venue, event or sport; their organisation’s reputation, its brands and its relationships are some of their most important assets. A loss of these can spell disaster for the business, particularly in a world of shrinking revenue’s, participation rates and market share. So what are these issues and why are they important?A brand is a collection of associations connected with a service, entity or person. The brand is sometimes described by marketers as the personality traits behind a product or service. If we were talking about the personalities of a brand these traits might include:

• Their name, look, hairstyle and clothes, (i.e. a venue’s name, logo and building presentation); and
• Their behaviours like a sense of humour and simple approach, (i.e. a sport that is fun and simple to use)

A reputation is based upon people’s experience in using the brand. (i.e. whether the sport or venue is safe to use).

Our relationships are critical; with our customers who buy tickets, with our suppliers who are reliable, with the media who support us, and our industry who respects us.

Anything that threatens our brand, reputation or relationships is a risk to the business and should be taken seriously. A risk-based approach to image and reputational risk to manage these threats is important to identify and prioritise these threats and direct resources toward limiting the chance of the threat or its impact. This requires the risk management discipline to be applied to marketing and overseen by the organisation’s Executive to understand the risks, and use tools like Enterprise-wide risk management and crisis management planning to help.

Reputational Risk – Important Considerations Linked to Safety

For many safety professionals, safety risk is defined as the level of injury or fatality resulting from a hazardous occurrence. Yet if you asked the public to define safety risk, they may see things quite differently. The safety professionals definition fails to take into account all the factors that invoke an emotional response such as fear, fright or anger which collectively make up factors contributing to a more significant reputational risk through ‘public outrage.’ In a reputational sense some practitioners argue that the following definition exists:

Risk = Hazard + Outrage

The irony is that most safety professionals pay little attention to the outrage when considering risk, and the public often pays less attention to the actual hazard. Bird flu was such an example where the fear created amongst the community, far outweighed the reality of hazard.

Experts in risk perception have identified the following variables as some of the contributing factors to this outrage phenomena:

• Control - The level of control one has over the hazard – e.g. driving the car feels far safer rather than being a passenger
• Fairness - Where there is a perceived level of unfairness in the treatment of one group over another
• Morality – Where there are some risks which are not only unacceptable but perceived as evil – e.g. child molestation
• Trust – Where we feel more empowered and believe as true information about a hazard when it comes from a reputable source

Concerns for these factors are important when making decisions regarding safety hazards and the choices available between alternatives in risk management.

Considerations such as these should be at the forefront of all managers and Executives in high profile public and private organisations, major event organisers and large venue operators in the way they communicate risk with their external stakeholder. Failure to do so can be exceptionally damaging to the brand and the bottom line.

~ Wayne Middleton - Reliance Risk, the Risk management specialists

OHS Harmonisation – National Approach to Safety

In conjunction with Corrs Chambers Westgarth, Reliance Risk is hosting a free after hours seminar in Sydney on the upcoming changes to the OHS legislation in NSW. The changes, due in 2011, will see a national ‘harmonisation’ process across all states to fall under the one regime. Of particular interest to venue managers and event organisers is the increased onus on managing safety risk for all people under their control (including the public) and an emphasis toward Enterprise-wide programs to help manage safety.This seminar will be held on the 24th of March at, Corrs Chambers Westgarth, Level 32, Gover Philip Tower.

If you’d like to attend please RSVP to Renae Lewis, on 02 9210 6896 or renae.lewis@corrs.com.au.

For event risk management consultation, contact Reliance Risk.

Terrorist Attack on Sri Lanken Cricketers – A reminder of the risks

Yesterday’s terrorist attack in Pakistan serves as a stark reminder of the inherent terrorist threat that exists for high profile major sporting events. A total of seven players and coach were hurt in a gun and grenade ambush in the Pakistan city of Lahore which left at least eight other people dead.

Since the 1972 Munich Olympics where 11 Israeli athletes and officials were murdered in a terrorist attack, major sporting events have represented a high profile target for terrorism. This was reinforced again with the 1996 Atlanta City bombing and more recently in Australia with the alleged 2005 plot by home grown groups to attack the Melbourne Cricket Ground for the AFL Grand Final.

Security risk management and for larger major events, anti-terrorism planning, continues to be an important part of any major event’s risk management planning.

Are Slips, Trips and Falls a Problem For Your Venue?

Do slips, trips and falls represent the majority of incidents and injuries reported in your venue? If not, you are either:

1. Lucky

2. Diligent; or

3. Ignorant

From our experience slips, trips and falls represent somewhere between 40%-60% of all injuries and safety incidents for most public venues and events. From research into the Sydney Olympics, 41% of all incidents recorded by SOCOG were slip or trip related with almost half of those requiring medical treatment beyond an initial first aid at the venue.

But this injury category is not limited to public venues and patrons are not the only ones affected.

Frequency and Seriousness

The frequency and seriousness of injuries sustained through slips, trips and falls by employees is also well documented. In 2001 European workplace safety experts noted that inadvertent slipping was responsible for 12% of working accidents in France and 5% of serious accidents for people more than 60 years of age . In 2004, the Liberty Mutual Research Institute for Safety in the US reported slips, trips and falls as the second highest cause of workplace injury costing the US economy approximately US$5.7 billion annually.

According to Workcover in NSW, during 1999-2000 slips, trips and falls represented approximately 20% of all reported non-work-related injuries. In 2006 the UK's national Workcover equivalent, the Health and Safety Executive reported that slips and trips represented 50% of injuries that affect the public, 33% of all major workplaces and 20% of injuries requiring more than three days off work.

Costs

The serious nature of some slip and fall injuries would suggest that this is an area venue managers should always take an interest in. In NSW in 2004/2005 total direct costs resulting from slip, trip and fall related workers compensation data was approximately $110 million. The average cost per W/C claim was about $18,900. Research from the Sydney Games estimated a total cost of slip and falls for 206 temporary and permanent injuries was approximately AUS $3.4m across the Games period.

Are Slips, Trips and Falls Preventable?

So if you are thinking that people are inherently clumsy and will slip and trip regardless of what you do………think again.

Slips, trips and falls experts claim that many people consider slips and trips as non-preventable incidents and thus give them little risk management attention. In a 2000 study, the CSIRO found that 86% of all slip and trip-related public liability claims were indeed preventable.

If the causes of slips and trips are treated as system failures, then identifying such failures and investigating root causes of slip and trips incidents can improve the effectiveness of pre-event risk assessments and reduce the chance of injuries.

Causes

So to mitigate slip and trip hazards it is useful to understand what they are and what causes them.

A slip is defined as a loss of footing, which results in an unforeseen and out of control slide of the foot. It is the outcome of a lack of friction between foot and surface. A trip could be categorized as a loss of footing resulting from an unforeseen variation to the walking surface. While this may be reasonably self-explanatory, when system causes of loss of friction are considered researchers have identified four factors:

1. An individual's impaired mental or physical condition;

2. A slippery surface area;

3. A flaw in the design of the area; or

4. A foreign body or matter on the walking surface.

Mental and Physical Condition

The profile of staff and patrons with regard to their mental and physical condition should be an important feature of every pre-event risk assessment. Complicating factors may include alcohol consumption, expected footwear and age. Some studies have found that uneven flooring surfaces were the single most significant factor in slip and trip injuries sustained by the elderly.

Slippery Surface

Other studies have identified surface variation and texture, lighting, surface moisture and lack of consistency as key contributory factors. This has obvious implications for selecting venue locations for outdoor events; for the installation of overlay across pedestrian thoroughfares, and for monitoring of cleaning systems during events.

Changes in Thoroughfare Elevation

During the Sydney Games more than 50% of all slip and trip incidents occurred on steps at venues and on kerbs immediately outside venues.

Who's Getting Hurt?

Gender issues:

A post Games medical study after the 1996 Atlanta Olympics reported more injuries sustained by women than by men. From the Sydney Games, approximately 65% of all slip and trip incidents were reported by women. Before jumping to any conclusion you may think I am drawing between women and injuries, the research is inconclusive. This may purely suggest that women are more likely to report injuries than men.

Constituent Groups

Interestingly, from the Sydney Games, the Games workforce (i.e. including staff and volunteers but excluding contractors), sustained more injuries than spectators from slips and trips. This suggests that staff may be as likely, if not more likely, to sustain slip and trip injuries than the public. This has implications for staff induction and ongoing hazard management during both event and non-event times.

What Can you Do?

To manage slips and trips you should:

• Undertake regular physical inspections of pedestrian and staff thoroughfares throughout your venue/s (including all emergency exits);

• Monitor crowd movements during heavy flows and identify locations where high crowd densities and uneven surfaces combine to increase the consequences of a fall during high crowd flows;

• Ensure slips and trips are included in your pre-event risk assessment with special consideration for the crowd profile and their probable mental and physical condition;

• Document the outcomes of this risk assessment. State OHS laws require you to mitigate slip, trip and fall hazards. To prove you have done so should include a documented risk assessment.

• Investigate all incidents. Understand the system failures that led to these incidents and address the cause not the symptom.

• Collect quantifiable data. Understand where trends are occurring and make risk-based decisions based upon system causes of slip and trips.

Legal Action Against Event First Aid Treatment

Current legal action in Victoria sets to shine the spotlight on the level of medical care provided at events.

In the Victorian County Court, a woman is suing Surf Lifesaving Australia and the Lorne Surf Life Saving Club for damages resulting from injuries allegedly sustained while receiving treatment from St John Ambulance volunteers. The woman was competing in several events during an international surf lifesaving championship at Lorne, Victoria in 2006 when she was treated by volunteer first aid officers for a shoulder dislocation. The writ claims this treatment provided by volunteer first aid officers exacerbated her injury, was beyond their capabilities and constituted unlawful assault and battery. This case emphasizes the need for all event organisers to:

1. Conduct a thorough event risk assessment prior to the event
2. Match the capabilities of medical services and first aid with foreseeable injuries likely to occur at the event; and
3. Ensure medical and first aid staff have clear protocols for dealing with injuries that are beyond their trained level of competency

For more news on risk management, visit our website.

Safety Risk Culture

A positive safety culture leads to both improved health, safety and event risk outcomes. Studies have identified nine broad staff behaviours (referred to as culture actions) as vital to the development of a positive safety culture. As a consequence, safety competency is characterised as an ability to undertake the nine identified culture actions as part of the effective completion of relevant safety and risk management tasks.

The culture actions that foster strong safety culture should be demonstrated by senior managers and the Executive. These include:

1. Communicating your organisation’s values
2. Demonstrating leadership
3. Clarifying required and expected behaviours amongst staff as it relates to risk and safety
4. Personalise safety outcomes so that people see the human cost
5. Developing positive safety attitudes so it is seen as adding value rather than as a burden
6. Engaging and owning safety responsibilities and accountabilities and linking to performance management
7. Increasing hazard/risk awareness and preventive behaviours
8. Improving team member’s understanding and effective implementation of safety management systems
9. Monitor, review and reflect on personal effectiveness of senior managers

Without leading by example and walking the talk, safety and risk management will not get embedded into normal business.

For more information on Risk Management Pracitces please click Here

Victorian Bushfires Highlights Emergency Services Duty of Care

As the Victorian Government announces a Royal Commission into the bushfires that have devastated large areas across Victoria, a 2006 NSW Workcover prosecution of that state’s police handling of the Redfern riots, serves as a reminder of the level of care expected under OH&S laws for emergency services in hazardous environments. In that case, of the 217 police that attended the disturbance, 42 police sustained injuries ranging from psychological trauma to various levels of musculoskeletal injury.

The Industrial Court of NSW found that the NSW Police Service had failed in its duty of care to make the workplace that they controlled, safe and without risk. This is undoubtedly a difficult condition to achieve during civil disorder but still a responsibility under OH&S laws. The Court found that the risk of injury (not just resulting from injuries but the risk of injury), was great. It found that the personal protective equipment provided to some police was inadequate and the level of training provided in use of that equipment varied and was in some cases insufficient. The Court did not however find an absence of relevant policies and procedures for dealing with civil disturbances but rather that those policies and procedures were in some cases inadequate. The Service was fined $100,000 for its breach and poor risk assessment.

While the proposed Royal Commission in Victoria will undoubtedly look at all relevant preventative and preparedness measures taken by emergency services relating to the Victorian bushfires, given that this natural disaster is unprecedented in Australia’s history, it has stretched many of the human resources available to emergency services across the state. It will be with interest we watch the response of the Victorian Worksafe Authority in the disaster’s aftermath, given the precedent that was set from the Redfern riots in NSW.

Visit the Reliance Risk website for updates on risk management and assessment in Australia.

Evenst risk management - Reliance Risk

Major events are unlike any other business. They attract considerable media attention; draw sizeable investment from Government and/or the private sector; involve a mass gathering of participants; contain a non-negotiable start date; and are one-off, without the benefit of continuous improvement.

All this means that major events are exposed to a unique set of risks involving safety, security, legal, financial, environmental, project-based and, most importantly, reputational risk.
Preparation is essential

Risk management for major events must start early. This ensures that all essential event risk management criteria are set in place. Considerations include budget allocation, contract details, management systems, governance, risk, compliance and accountability structures.
Reliance Risk provides event specific services to assist major event organisers:

* Event Risk Management Plans - covering event context, risk registers, roles and responsibilities and insurance certificates.
* Event Safety Plans - including risk assessments, contractor safety and emergency management.
* Event Operating Plans - including detailing venue relationships, event team organisational structures, functional area suppliers, and event delivery plans.
* Event Risk Officers - provision of an event safety and risk on-site auditor and post incident loss investigator for events.
* Operational readiness - scenario planning, readiness inspections, desk-top exercises and simulations.
* Verification - audit of event risk management or crowd management plans.
* Crowd capacity estimates - we work with venues to establish appropriate crowd capacity estimates.

Reliance Risk Projects

Reliance Risk has a wealth of experience in major event planning in both risk, safety, security and operations, providing the right skills set to suit each client’s needs.

* Ocean Swims - Event Risk Assessment for the 2008 Cole Classic at Manly.
* Public Arts Exhibitions - Event Risk Management Framework and Operational Readiness Inspections; Sculpture by the Sea Bondi (2007) and Cottesloe (2008).
* Australian Tennis Open (2008) - Verification audits of Event Risk Management Plans.

Confusion over Risk Terminology

Often people in the sporting, venues and events industries confuse risk management terminology. Some commonly confused terms include:

* safety with risk – risks associated with personal injury (safety risks) often get confused with risks which are threats to achieving objectives in terms of likelihood and consequence.

* hazards with risks – hazards are typically the cause of a risk. In safety they may be a form of latent energy source causing injury. They get confused with the chance (likelihood) of a particular consequence occurring.

* risk management with risk assessment – the whole process of establishing the process, risk identification, analysis, selection of controls, monitoring, consultation and communication can get confused with the assessment phase of risk management which includes only risk identification, analysis and selection of controls

* risk assessment with risk analysis –risk assessment is the identification, assessment and selection of controls being confused with only the phase that establishes the likelihood and consequence of risk and compares the result against an acceptability criteria

* inherent risks with residual risk – inherent risks reflect the level of risk before controls are finally implemented. They get confused with the level of risk after controls are implemented. Technically, there can be three levels of risk:

1. inherent risk – the level of risk with no controls
2. gross residual risk – the level of risk with current controls
3. net residual risk – the level of risk once additional controls are implemented

* preventative controls with preparedness controls – preventative controls tend to prevent a risk from occurring, while preparedness controls tend to mitigate a risk’s impact

* most foreseeable risks with worst case scenario risks – most foreseeable risks are that are more likely to occur and that usually have lower consequences, rather than worst case risks which are, by their nature, rare events with catastrophic consequences

From our experience many of these terms get used interchangeably by different people within the same organisation. When there is no consistent agreed terminology, the subsequent confusion can detract from efforts to implement risk management across the company and negatively influence the risk culture. To address this, some organisations develop a Risk Management Framework. Such a document helps to define terms, methods, processes, policies, structures, roles and responsibilities. By doing so, this clarifies to the entire organisation how risk is to be managed and communicated effectively across the business.

~ Reliance Risk,Event Risk Management specialists

Risks to Events and Venues from the Current Economic Crisis

So how will the current financial crisis impact upon venues and major events industry in Australia? Clearly the current situation represents one of the most significant emerging risks to these industries experienced in recent times.

Revenues
Firstly, the falling exchange rate will make it less attractive for major US and European artists to tour Australia if our currency continues its current rapid slide. Sponsors of major events and public venues will become more selective in terms of their marketing spend and this will flow on to a reduction in revenues for sponsored entities. If the economic downturn continues towards a global recession, unemployment will increase and the public will have less disposable income to spend on discretionary items such as concert and major event tickets.

Expenses
As the credit crisis worsens across the financial sector, more of the insurance industry is likely to be affected. The loss of one of America’s largest insurers, AIG, shows the potential that the crisis presents to the insurance sector. As insurer profits diminish, insurance premiums will likely increase, given the current point in the insurance cycle.

Risk-Based Approach
The instinct for sports, venues and event organisers may be to batten down the hatches and cut costs. It is in fact, a time to review the organisation’s risk profile and manage risk effectively. Your organisation may have to take on more risk in a market that is shrinking. That is, assessing and mitigating the organisation’s financial exposures and liabilities while maximising opportunities presented by the changing economy. All this while maintaining compliance standards and continuing to differentiate your organisation’s brand and reputation from competitors. A tough ask but an important one!

In this environment, all businesses must fight harder to win every dollar and make a more concerted effort to keep every dollar that they have. Prudent risk management practices are the key.

For more information on Risk please visit Reliance Risk