The Copenhagen Risk Assessment white paper has been developed at the initiative of our partners at the Copenhagen Convention Bureau, due to the pressing need to increase the awareness and knowledge of risk management and risk sharing in the business events industry. The paper focuses on three risk pillars – strategic, financial, and operational – which are key parts of the business events industry. To uncover challenges and explore potential opportunities for change, one-on-one consultations and an online survey were conducted during spring 2023. The findings were integrated with expert analysis and literature review.
Highlights
The paper identifies global megatrends that are leading to uncertain long-term business commitments from buyers around health, safety, Environment, Social and Governance (ESG), cyber security and geopolitical instability.
Changes in buyer delegates' behaviour have resulted in the business-to-business (B2B) supply chain being impacted and are influencing the selection of destinations and suppliers for business events. Buyers are more cautious than ever as fluctuating delegate attendance impacts all parties for the accuracy of revenue and service delivery.
Contractual flexibility is currently the single biggest pain point for both buyers and suppliers and although tension is building, both parties have the same competing risks with opposing solutions. As a result, this is a prime opportunity to identify ways to collaborate to share risk, and some thought starters are outlined in the paper.
The understanding of the scale of risk and who owns it is inconsistent across the industry. The depth and type of risk frameworks vary across buyer and supplier sides, with both parties having some gaps. The paper emphasises that risk ownership is an essential part of effective risk management. By assigning clear responsibilities for risk management, organisations can improve their ability to identify, assess, and mitigate risks.
Risks associated with business events are complex and interconnected. A comprehensive risk management plan that considers all potential risks and includes collaborative efforts between buyers and suppliers can help to mitigate these risks.
Path Forward
The business events ecosystem is complex. It delicately balances overall strategic meeting objectives with delegate interests and engagement, as well as with operational delivery and international relations. The radical uncertainty with shifting market trends and changes in geopolitical, technological, and environmental conditions calls for a movement towards risk-sharing management, so we can stand as strong as possible in our business collaboration and execution.
Findings outlined that many players in the business events industry are uncertain of the benefits of risk sharing. Yet the survey showed that there is great interest in exploring the potential. The paper suggests that risk sharing must be explored as a way forward to support a more resilient industry prepared for current and future risk scenarios. Examples of risk sharing are presented.
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