CED CED Risk Management & Contingency Planning 2 — Questions and Answers
Question 1: A speaker cancels 24 hours before a conference. The best contingency response is to:
- Activate a pre-identified backup speaker or adjust the agenda (Correct answer)
- Refund all attendees immediately
- Cancel the entire session
- Announce the cancellation via social media only
Correct answer: Activate a pre-identified backup speaker or adjust the agenda
Having a pre-identified backup speaker or a flexible agenda allows the event to continue smoothly despite last-minute cancellations.
Question 2: Which method helps quantify the financial exposure of a specific event risk?
- Risk impact analysis (Correct answer)
- SWOT analysis
- Gantt chart review
- Vendor scorecard
Correct answer: Risk impact analysis
A risk impact analysis assigns monetary or resource values to potential risks so planners can make informed decisions about mitigation spending.
Question 3: In risk terminology, 'risk transfer' for event planners most commonly refers to:
- Purchasing insurance or including liability clauses in vendor contracts (Correct answer)
- Moving an event to a safer location
- Delegating all planning tasks to a third party
- Shifting the event date to avoid a known hazard
Correct answer: Purchasing insurance or including liability clauses in vendor contracts
Risk transfer shifts the financial burden of a risk to another party, most commonly through insurance policies or contractual liability clauses.
Question 4: A venue's maximum occupancy limit is primarily a consideration for which type of event risk?
- Safety and compliance risk (Correct answer)
- Reputational risk
- Financial risk
- Supply chain risk
Correct answer: Safety and compliance risk
Exceeding occupancy limits violates fire codes and safety regulations, making this a safety and compliance risk that can result in event shutdown or legal liability.
Question 5: Which communication tool is most effective for informing all staff simultaneously during an on-site emergency?
- Two-way radio or walkie-talkie system (Correct answer)
- Email blast
- Printed memos distributed backstage
- Social media post
Correct answer: Two-way radio or walkie-talkie system
Two-way radios allow instant, simultaneous communication across all staff teams, which is critical for coordinating rapid responses during on-site emergencies.
Question 6: An event planner discovers a key AV vendor cannot deliver equipment on time. The FIRST step should be to:
- Consult the contingency plan for alternate AV vendors (Correct answer)
- Terminate the vendor contract immediately
- Notify attendees of potential AV problems
- Reduce the scope of AV requirements
Correct answer: Consult the contingency plan for alternate AV vendors
Consulting the contingency plan first ensures the planner follows the pre-established escalation path and contacts vetted backup vendors without delay.
CED CED Risk Management & Contingency Planning 2
A speaker cancels 24 hours before a conference.
The best contingency response is to: