Risk Mitigation & Crisis Management
June through November. It’s that time of year that makes Event Strategists weary of planning a meeting or convention in the coastal Southeast: hurricane season.
Unfortunately, it’s not just this area where destinations are threatened by horrific natural disasters—from hurricanes to tornadoes to wildfires to earthquakes—that affect communities and business events and have led to more insurance claims, including for event cancellation.
But it’s not just environmental impacts that are ever-present at meetings and events. It’s reputational risks, from safety to cyber security. It was the COVID-19 pandemic. That’s why it’s increasingly important for Event Strategists and Destination Organizations to work together on risk mitigation strategies and crisis management and communication plans for business events.
Risk mitigation is pertinent to destinations and incoming business events for multiple reasons, including:
- Ensuring compliance and minimizing risks
- Increasing communication clarity to all involved to allow for quick and efficient decision-making
- Preventing panic or extended damages
- Establishing credibility within the community and outside of the community
- Decreasing misinformation and supporting a quick reaction time
- Protecting people
- Protecting the destination and the organization’s brand
- Enhancing event success and customer satisfaction
Risk Mitigation vs. Crisis Management
In the Association’s Guide to Risk and Crisis Management, ASAE, in collaboration with ASIS International and RIMS, describes risk as an uncertain future outcome that can improve or worsen an organization’s position and risk management as coordinated plans to guide actions and decisions related to the effects of uncertainty.
A crisis, as defined by the Institute for Public Relations, is “a significant threat to operations that can have negative consequences if not handled properly.” According to the Association’s Guide to Risk and Crisis Management, “the ASIS International Business Continuity Management Guideline describes crisis management as a holistic management process that identifies potential impacts that threaten an organization and provides a framework for building resilience, with the capability for an effective response that safeguards the interests of its key stakeholders, reputation, brand and value-creating activities—as well as effectively restoring operation capabilities.” Additionally, the guide states that crisis management involves the management of preparedness, mitigation response, continuity or recovery in the event of an incident—as well as management of the overall program through training and reviews to ensure that plans stay up to date.
The U.S. Federal Emergency Management Agency (FEMA) identified four components of emergency management and response: mitigation, preparedness, response and recovery. While some of these areas align more with risk mitigation and others with crisis management, the concepts overlap.
Risk Mitigation
- This aligns with the mitigation and preparedness areas of the FEMA framework.
- Mitigation includes activities that prevent or reduce the likelihood of an emergency before it occurs.
- Mitigation example: Purchasing insurance.
- Preparedness involves actions to prevent or reduce the impact of disasters.
- Preparedness examples: Developing disaster preparedness plans and practicing the plans through drills and exercises.
Crisis Management
- This aligns with the response and recovery areas of the FEMA framework.
- Response occurs in the immediate aftermath of a disaster when businesses do not function normally, and safety, well-being and the response duration depend on the level of preparedness.
- Response example: Implementing disaster response plans.
- Recovery includes restoration efforts that occur as regular operations resume.
- Recovery examples: Preventing or reducing stress-related illnesses and excessive financial burdens, rebuilding damaged structures and reducing vulnerability to future disasters.
Topics of Consideration Around Risk Mitigation & Crisis Management for Business Events
Destinations International developed a framework for Event Strategists and Destination Organizations to collaboratively consider when evaluating and planning for meeting risks.
Environmental
Workforce
Crime
Physical & Mental Safety
Homelessness
Technological
Financial
The Value of Working with Destination Organizations to Mitigate Risks
By forming a partnership with the host destination that promotes collaboration and open communication, the Event Strategists can mitigate risks more effectively and coordinate plans to minimize disruptions should a crisis occur.
Maximizing Risk Mitigation with the New DBA
The new Destination Booking Agreement (DBA) focuses on protecting both the Event Strategist and the Destination Organization by promoting risk mitigation. Fostering collaboration over cancellation, the DBA increases industry credibility for the Event Strategist by providing clarity of expectation and mitigation of displacement and adding liability protection in the event that the destination displaces the event.
Getting Destination-Specific Insights
ASAE conducted a Risk Management and Safety survey in 2023, analyzing risk and crisis management from the perspective of business events and destinations. The survey found that the top destination selection factors are crime and safety, destination weather and future climate predictions, and health and safety measures.
During the site selection process, the Event Strategist should lean on Destination Organizations to consider the time of year and what is going on leading up to and during your events, like weather patterns or legislative sessions, which could prompt social unrest.
Accessing Crisis Plans
Once the host destination is selected, the Event Strategist should work with the Destination Organization to achieve risk mitigation goals through the creation of a safety and security plan for your meeting. For citywide events, the Destination Organization can help facilitate communication with the convention center, hotels, the DMC and local authorities, including venue-specific efforts. For smaller events, which are often confined to a single property, less public engagement is required to ensure the safety and security of attendees.
You should talk with the Destination Organization about its crisis communications playbook—or pre-planned structured set of guidelines to follow in response to a crisis to minimize damage, safeguard reputation and ensure an efficient response quickly and effectively.
For Destination Organization sales, services, and marketing and communications professionals, additional training can be accessed through the new DI Business Intelligence Training Course.