Writing Assignment

MSA668

Venue and Event Management

Belhaven University

Unit 6

Contract Considerations & Risk Management

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Learning Tools

 Class lectures

 Hearing and seeing

 Textbook

 Reading

 Individual homework

 Analyzing

 Discussion forum

 Applying and examining

 Completing all

components is very

important to

accomplish the

objectives of the

course.

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Tips for Success

 Course Page

 Activities

 Individual homework

 Discussion forum

 Weekly discussions

 Media

 Module

 Handouts & links

 Class lectures

 Schedule

 Be attentive to

deadlines.

 The week (unit) begins

on Monday and ends

on Saturday.

 Observe Sabbath

 Manage your time

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MSA668 Chapter 9 – Contract

Considerations (Events)

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Legal Considerations

 Insurance

 These needs are determined by the type and location of

your event.

 Liability insurance is necessary no matter what because

a facility owner will require you to purchase it to protect

their interest in your event.

 Weather

 Cancellation insurance can ultimately save an event from

bankruptcy before it has a chance to happen.

 Cancellations can occur because of weather, power

outages, flu outbreaks, and other unforeseen

circumstances.

Legal Considerations, cont.

 Employment

 Staffing of events is key to providing a safe

environment.

 Hiring adequate supervision and a trained and

competent staff protect the event and facility

managers.

 Employers must comply with federal laws.

 For the most part, sports organizations rely on

volunteers.

 Select the most qualified volunteers because the

success of the event largely falls on their shoulders.

Legal Considerations, cont.

 Regulations, licenses, and permits

 What you offer during your event will dictate the types of

regulations, licenses, and permits you need.

 Common regulations are the use of loudspeakers in

public areas, performing in a public area, and building

permits.

 Food handling

 When food is improperly handled, it leads to illnesses of

guests.

 Hiring a food service manager with experience and

proper training will ensure you have taken the necessary

steps to offer quality food service.

Legal Considerations, cont.

 Liquor

 Event managers face the difficult decision of whether

to serve alcohol.

 Alcohol is a great source of revenue, but if you serve

alcohol, you incur risks.

 Develop a comprehensive alcohol management plan

that is part of your overall risk management plan.

Contract Law 101

 Agreements between events and facilities,

events and vendors, and events and ancillary

contractors must be negotiated and formalized.

 A contract is a promise that requires that an offer

be presented, considered, and accepted and the

parties will enter into a legal relationship.

 Two types of contracts:

 Bilateral involves two parties engaging in a promise.

 Unilateral is one direction; an offer is made but not

accepted.

Contracts

 Offer: The initial promise that one party gives to another

to either do something or not do something. There is

usually a price tag included.

 Acceptance: When the person being offered something

accepts the conditions.

 Consideration: Something of value offered by one

person in exchange for something of value from the

other person.

 Capacity: Being of legal age and mentally capable of

understanding the conditions of the promise.

 Legality: The promise must be based on a legal

transaction.

Types of Contracts

 Facility

 Because most facilities do not put on their events, they

look to lease the use of their facility.

 When renting out a facility, the facility manager and

event manager often have to come to an agreement and

sign a contract.

 Game

 These contracts are formed so there are no

discrepancies in terms of the agreement between the

teams participating.

 The date, time, location, compensation for playing, any

travel reimbursement, rules, and regulations are always

included in the contract.

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Types of Contracts, cont.

 Sponsorship

 Formed to protect the best interests of the parties

involved.

 Expectations, rights, benefits, fees, terms, governing

laws, marks, logo usage, and duties should be

discussed in the contract.

 Waivers and releases

 If the event is participatory (e.g., a sports competition),

use waivers.

 A waiver releases the organization from liability should

the participant become injured during the event.

Federal Legislation

 Events must follow the rules and restrictions of

the facility where they operate.

 Americans with Disabilities Act (ADA)

 Formed in 1990, this act aimed at mainstreaming

people with disabilities into all aspects of society.

 Facilities are required to provide barrier-free

accommodations that could require modifications to

current layouts.

 Everything such as event forms and hotel

accommodations needs to be taken into consideration

by the event planner.

Federal Legislation, cont.

 Occupational Safety and Health Administration

(OSHA)

 The primary goal is to reduce the number of job-

related illnesses, injuries, and deaths in the United

States.

 The tragedy of the Indiana Sate Fair in August 2011 is

an example of why laws like OSHA are needed.

 This shows why event managers must perform due

diligence in hiring qualified staff and subcontractors.

MSA668 Chapter 10 – Risk

Management and Negligence

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What Is Risk Management?

 A process for managing the risks that you can

identify and insuring those you can’t manage.

 There are many definitions but nearly all suggest it is

necessary to aggressively identify potential hazards.

 To spectators, the processes of forming a risk

management plan is often invisible, but that

does not make it any less important.

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Risk Management Process and Plan

 Risk management is not a one-and-done exercise; it’s

a process that uses the various entities involved in the

creation and execution of an event to create the safest

environment for patrons.

 A risk management plan contains all the necessary

elements of a crisis management plan, emergency

action plan, and communication plan.

 The process should happen in the following way:

 Identify risks, project potential issues related to risk, identify

remedies, do what is necessary to prevent injuries, anticipate

the reaction to a crisis, and create a plan for both the crisis

and how it will be communicated to the public.

Steps to a Risk Management Plan

 Identify

 A legal audit allows the identification of deficiencies that

need to be addressed or corrected during the planning

process.

 Assess and classify

 Documentation of previous incidents is a resource when

assessing issues and attempting to classify them.

 Treat and manage

 The four options for treating risks are retain, reduce, avoid,

and transfer.

 Requires generating standard operating procedures

(SOPs).

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DIM Process

 Developing the plan

 During this stage, attempts to determine the potential

risks that could be associated with an event are

expressed. You can collect this information in a variety

of ways, including talking to fans and walking through

the venue.

 Once the risks are identified, they must be classified.

Classification of potential risks places them in a

hierarchical order that provides an understanding of

the frequency and seriousness of the risks.

DIM Process, cont.

 Implementation

 Successful implementation requires all involved to

understand the expectations the plan has established

and their role in ensuring they are maintained.

 A key to the facilitation of a risk management plan is

the effectiveness of the communication plan.

 Handbooks, e-mails, posters, fliers, and other forms of

communication are essential to maintaining

consistency in expectation and open lines of

communication.

Threats to Events

 Medical attention

 Staff should be CPR, first aid, and AED certified.

Event personnel should carry cell phones if they need

to call 911.

 Heat-related illness

 Heat is the most common weather-related killer.

Someone from event management should be

responsible for checking the extended forecast.

 Lightning safety

 Consult the various organizations that address

lightning.

Threats to Events, cont.

 Blood-borne pathogens

 Strict precautions regarding the handling of blood-

borne injuries are specified by OSHA. They provide

guidelines to prevent the spread of diseases through

contact with blood.

 Equipment and supervision

 Equipment is essential in a sport for the protection of

participants.

 Safety inspections need to be performed regularly to

ensure the equipment is maintained and in working

order.

Key Terms of Crowd Management  Crowd expectations

 Patrons expect the environment they are entering has been

prepared for the event and is safe and secure.

 Crowd dynamics and demographics

 Each crowd has unique qualities. Demographics plays a role in

dynamics.

 Movement theory

 How people move in and around a facility relates to pedestrian

traffic.

 Movement theory takes into account the speed at which a crowd

moves multiplied by density and width of a crowd, which indicates

flow.

 Evacuation procedures

 Max exodus of crowds requires that adequate exits be available,

unlocked, and ready to use.

Key Terms of Crowd Management, cont.

 Fan education and alcohol policy

 If the venue decides to sell alcohol, an alcohol policy must be in

place.

 Training

 A properly trained staff is the first and most important ingredient

in a CMP.

 Crowd control

 Crowd control relates to the actions that are implemented once a

crowd begins to act in a way that was not planned.

 Signage

 Adequate signage in and outside the facility is important for

crowd control.

 Two typical signs are directional signs and informational signs.

Maintaining Crowd Control

 Good crowd planning and management

improves the public’s enjoyment of events and

encourages attendance.

 It also reduces crowd-related accidents,

associated liability claims, and the possibility of

more serious and costly incidents.

 Crowd management is the measures taken to

facilitate movement and enjoyment of people.

Crowd Management Plans

 An effective plan addresses these issues:

 Number of people at the venue

 Behavior of spectators

 Layout of the facility

 Managing the movement and activities of guests

 Assisting in emergencies

 Assisting guests with specific concerns related to their

visit to the facility

What’s next?

 Complete the reading assignments

 Complete the writing assignments

 Answer the discussion questions

 Complete the unit quiz

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References

 Greenwell, T. C., Danzy-Bussell, L., & Shonk, D.

J. (2014). Managing sport events (1st ed.).

Chelsea, MI: Sheridan Books

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