Risk Management

The risk of this project have been evaluated using following three by three matrix:
Severity
High
(major impact on Event Viability or
major Cost Implication)
Medium
(moderate impact on Event Viability or
moderate Cost Implication)
Low
(minor impact on Event Viability or low
Cost Implication)
Likelihood

Risk

Impact

Medium

High

High

Low

Medium

High

Low

Low

Medium

Unlikely

Possible

Probable

Likeliho
od&
Severity

Ratin
g

Avoidance and Mitigating

strategy

1. Financial
Cuts made to
Financial
marketing
support and
campaign/
budget razing
media/PR
activities
Cuts made to
bring less
the Event
money than
Program
was planned Unable to
to run Event.
properly
leverage
additional
support
Cancellation of
the event

Blow out an
expenditure

Event runs at a
loss

Sponsors
Cuts made to
unable to pay
marketing
agreed
campaign/

Possible
High

Unlikely
High

Unlikely
Medium

Keep carefully tracking the

everyday Cash Flow +
Budget Plan and discussing
potential issues beforehand
in order to better money
allocation.
Engage closely to the major
financial sponsors/funds and
High
run faithful and open
communication.
Keep alternative manners for
money razing (through
additional arrangement of
advertising and promotions).
Create and update list of
companies for such
alternatives.
Med Set a clear guidelines for staf
with regards to their
authority to incur
expenditure
Organize weekly and monthly
financial reporting to the
Board
Update re-forecasting and rebudgeting in the monthly
and weekly reports
Low Spread sponsorship
payments through 2015 and
2016 to partly illuminate

sponsorship

media/PR and
the Event
Program
Unable to
properly
leverage
additional
support

Revenue at
the end of the
project will
not meet the
minimum
quote to cover
all subsequent
or postponed
costs

Event runs at a
loss

this risk
Obtain close communication
with sponsors so that their
financial status is well
known

Unlikely
Low

Low

Add to the partnership

contracts part with the
Postponed Payment
Procedure in case of
emergencies or unlikely
happened situations.
Consult with financial
institution about the
possibility of taking out a
loan under a specific
conditions.

2. Event Organization

Number and The economic

quality of
benefits
competitor
expected from
entries does
the event will
not meet
not be
expectations
achieved
Public and
Media
interests less
than targeted
Status of the
festival is
reduced
Quality and
depth of
competitors
does not meet
expectations
Lose sponsors
and partner
companies

Possible
High

High Ensure that event is wellmarketed through other

similar and close format
musical events/festivals in
Portugal.
Invite key competitors to
participate in event in a role
of key guests/supporters
and so on.
Establish direct links with a
local authorities in order to
receive a better support for
event organization.
Establish close relationship
with all potential
participants/signers so that
their personal PR positively
afect the overall status of
the event.
Agreed, in advance, with an
adequate numbers of PR
and Media Companies the
possibility to be involved in
Marketing Campaigns of the
event if required on the
latter stages.
Add to the partnership
contracts part with Possible
Penalties for not meeting
scheduled target audience.

Ticket sales The economic

fail do not
benefits
meet
expected from
expectations
the event will
not be
achieved

Possible
Med

Med Create a draft of on-going

marketing plan to promote
including the list of Media
Partners
Obtain a special ofers plan
for closer to event dates
agreed with the Board

Loss or

burnout of
staf due to
workload or
new
roles/opportun
ities

The
organizational
process runs
with less
efectivities
and
efficiencies
that could
afect
interdependen
t tasks and
bring possible
delays on
diferent
stages
Cut in overall
performance
rate
Delay in event
beginning or
breaking
performance
in the middle
of event

Unlikely
Low

Low

Unlikely

Cuts and/or
changes made
to the event
program
Delay in event
beginning

Unlikely

Med Conduct pre-event

maintenance double check.
Engage a group of
professional technicians onsite and on-call.
Prepare a backup power
supply.
Rent an additional sound
equipment so that the
failure one can be quickly
replaced (approve and
deliver only if the last check
of the original equipment
will go with any issues)
Ensure that all electrical
leads that might exposed
are covered or inaccessible
to public (in the day of
event).
Low Pre-event rehearsal
Arrange transport if
appropriate
Legal contract of services
Use appropriate back up via
agency or local contacts.
Ensure that performers have
insurance to cover their
activities while at event.

Power,

lighting,
sound system
failure

Entertainers
or/and
signers/bands
no show or
late, or injured

High

Medium

Everyday monitor of
workloads
Assist where hot spots
Recruit more support as
and when required
Assign Key area managers
tasks to support delivery
Approve and qualify
candidates for replacement of
the key staf as and when
required

3. Hazard& Emergency& Force majeure

Potential risks
such as
overheating,
crush, electrical
fire

Cut in overall
performance
rate
and/or Event
cancellation

Injury during
the event

Bad weather
condition

Cuts and/or
changes made
to the event
program

Unlikely
Low

Low

Possible
Low

Low

Possible
Low

Low

Qualified electrician on site or

on call
Set up clear guidelines for
the evacuation plan
Specifically marked area to
enable emergency vehicle
immediate access to/from
venue
Provide an adequate medical
support at venue
Medical personnel on site
Use of security guards who
are licensed for crowd
control
Consult emergency services
Create an alternative event
program (possibly with a
shorten time).
Enable the opportunity of fast
and lower-cost venue
reconstruction (canopy
protected from the rain or
sunshade)
Contact the suppliers of
protective rain clothes,
umbrellas and etc. and
provide them with a special
shopping location.