Sports and Entertainment Marketing: Risk Management

Human Risk
Risks that can be explained as human error
Ex. Dishonesty, theft, incompetence
Natural Risk
Weather conditions cannot be avoided
Ex. Tornadoes, hurricanes, floods, ice/snow
Economic Risk
Changes in the business environment and/or economy
Ex. Rising unemployment, investment challenges
Speculative Risk
When something could go really well or really wrong
Ex. A startup company may not perform well; a new band may not gain popularity
Pure Risk
A risk with no possible gain from the event
Ex. A flooded golf course cancels the tournament; there is a loss of business
Controllable Risk
Can be prevented and/or damages reduced
Ex. Putting up a wet floor sign in the store to prevent customers from falling
Uncontrollable Risk
When nothing could have been one to prevent the loss
Ex. Weather cannot be controlled
Insurable Risk
Risks that can be predicted and the replacement cost can be estimated
Ex. If in a car wreck, the car insurance may replace the vehicle

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