TESTING THE PLAN FOR RISK

MANAGEMENT
LESSON 8
Risk management process does not stop with
the identification of a solution to a problem and
training the staff for the execution of the plan
should the event comes.
The risk management plan must be tested to
determine its strengths and weaknesses to make
sure that we could handle the risks and reduce
losses.
There are three phases of risk-based testing which
includes planning, designing, and execution.

The whole process of risk management may occur

twice in the planning and designing stages. It must
be noted however that it is obligatory in the
planning stage but optional in the designing stage.

Risk identification is the listing of all potential risk

that might affect the full execution of the activities
pertinent to the industry of tourism. This is a
collective activity headed by the manager. Risks
identified during this stage are more managerial
that we have to look into at anything that might
affect the whole project schedule, budget, effort,
infrastructure changes and others.
Risk Analysis.
This risk analysis comes next after all the
risks are listed during the collective activity. The
chance of occurrence of the risk and the amount
of loss that might come will be weighed and
determined accordingly.
 The Risk impact analysis table (concert in open field)
Risk Probability Impact
Registration. The determination as to the exact number Medium Medium
of audiences
Venue. Suitability of the venue as to the number of High Medium
confirmed audiences while the planning is still ongoing
Arrangement. The stage and physical arrangement Low Low
taking into consideration the safety of both the
performers and the audiences

Performer’s confirmation. Backup plan/performers if High Medium

the original performer breach its obligation to the
event’s organizer

Security. The ability of the security to hold the bigger High High
crowd as compared to what is expected
Technical difficulties due to the supply of electricity High Medium
Natural disasater Medium High
 Risk Mitigation in risk – based testing is the
process of finding solutions in anticipation of
the problems that may arise in every situation.
The plan may vary based on circumstances
 Risk Probability Impact Mitigation Plan
Registration. The determination as Medium Medium
to the exact number of audiences

Venue. Suitability of the venue as to High Medium

the number of confirmed audiences
while the planning is still ongoing
Arrangement. The stage and physical Low Low
arrangement taking into
consideration the safety of both the
performers and the audiences

Performer’s confirmation. Backup High Medium

plan/performers if the original
performer breach its obligation to
the event’s organizer

Security. The ability of the security High High

to hold the bigger crowd as
compared to what is expected
Technical difficulties due to the High Medium
supply of electricity
Natural disasater Medium High