Risk is the potentiality of occurring a factor which may have negative and positive effect upon an event from meeting its aim and objectives and risk management is taking an appropriate action in advance to prevent the event from uncertainties. Risk management is a process of recognition, analysis and acceptation or mitigation of uncertainty in management of finance, human, tangible and intangible resources. Risk management is a tool that enables management to take action before occurring situation in organisation (Risk Management, 2018). This essay is based upon Moomba Festival which is to be held in South Australia in month of March. This event comprises so many events and conferences related to sections. This fate is 64 years old but maintains its objective and prosperity. This report is based upon risk management of Moomba Festival.
There are two types of risk, one is strategy driver and other is operational risk. Strategic risk includes market drivers, technologies, regulatory and macro environment risk etc. On the other hand, operational risk factors are financial, security, people related and business process risk. Uncertainties which are related to Moomba Festivals are a part of strategical risk (McNeil, Frey and Embrechts, 2015).
Measurement and management of risk is not an easy task as it contains some specific steps which are explained as beneath:
In the very first step, a proper framework should be decide so that all future possibilities could be predicted and managed accordingly. If event manager plans all uncertainties like this festival is getting attraction of many people and becoming popular on year basis then to hamper all services and facilities could be removed.
Risk Identification is a next step and in this section all factors should be analysed in order to measure kind of risk that may have some positive and negative influences. For example, future risk could be recognised by taking past year's data into consideration and probability of occurring a situation along with its impact upon business Activities of Moomba Festivals.
Once risk is identified then it is to be analysed that what is the type of risk and how it could be managed by eliminating, reducing, transferring and distributing risk factor. By taking aid of this evaluation, event manager can find out relevant solutions also according to the type of risk (Bessis, 2015).
Risk response plan is next phase of risk management process, this stage includes how an organiser retaliate upon a risk factor and what will be the corrective actions in order to manager risk in Moomba Festival. For example, if any other event is taking place on the same time and it has its impact on festival by reducing visitor so response plan for this condition is that how organisation can make their Activities more attractive in order to fascinate more audiences in festival.
Other phase is that once association is decided to popularise their Activities then action plan would be made like addition of some more human activity like additional events of music like concerts with popular singers etc. Once this plan is ready then it is clear that all actions and task would get examine so that efficiency could be measure for make some improvisations in corporation.
After analysing all previous stages, review will be constructed so that all necessary decision could be made. These reviews could be get from possible and potential audiences whom are regular visitor of Moomba