DEFINITION of ‘Risk Management.’
The process of identifying and either acceptance or justification of uncertainty in an event design decision-making. In effect, risk management occurs any time an tent installer or event planner considers to quantify the potential for losses in the event and then takes the appropriate action (or inaction). Insufficient risk management can result in significant financial burdens for companies as well as individuals. For example, the three deaths caused by two tents collapsing last summer could have been avoided by following the evacuation plan during weather related storm warnings
BREAKING DOWN ‘Risk Management.’
Fundamentally, risk management is a two-step process – determining the risks and then developing a plan to minimize those risks. Risk management occurs each time an event is constructed. A potential risk occurs when a tent installer ignores site conditions, weather-related warnings, and failure to follow manufacturers installation guidelines. The event planner has responsibilities of developing standards of reasonable care when designing and deploying a special event theme.
Risk Management is concerned with all loss exposures, not only the ones that can be insured. Insurance is a technique to finance some loss exposures and, therefore, a part of the broader concept of managing risk; not the other way around. Reference Marquet University