When it comes to incentive events, everyone in the delivery chain bears responsibility for risk management. But there are different levels of severity when it comes to risk. How do you assess the risk levels of certain elements of your program so you can take appropriate action?

John Hooker, managing director of jhcp, uses a mathematical approach. He suggests listing those who may be affected by each risk:

• Event attendees

• Employees

• Contractors

• Performers

• Members of the public

• Disabled persons

• Expectant mothers

• Potential trespassers

• Local residents

• And, of course, the client

Then, perform an easy evaluation using a simple scoring system. Give the harm/severity involved a rating between 1 and 3, and give the probability of it happening a rating between 1 and 3.

Multiply these two values to produce a figure between 1 and 9. That’s your risk factor. The range runs from low risk (1 to 3) to high risk (6 to 9).


For low-risk situations, no action may be necessary. For medium risks, look at methods to reduce the risk of the activity, if possible, and implement controls to minimize the chance for it to occur. For high-risk activities, consider methods to reduce the risk or, if that is not possible, consider eliminating the activity from the program. If you cannot do so, tell the client and participants about the risk, in writing, and implement significant controls to minimize it.

Source: Risk Management/Assessment for Incentive Events white paper, Site International Foundation