Risk Management & Ethical Practices Flashcards

During a pop-up activation, a brand ambassador offers free samples of an alcoholic beverage. What is the most important control to have in place?

Answer: Verifying the age of every participant with valid ID before sampling

Alcohol sampling requires age verification with valid ID to comply with state liquor laws and limit liability.

Which contract clause excuses a party from performing when an unforeseeable event such as a hurricane makes the event impossible?

Answer: Force majeure clause

A force majeure clause releases parties from obligations when extraordinary events beyond their control prevent performance.

An experiential agency is asked by a client to post fake positive reviews from 'attendees' on social media. What is the ethical response?

Answer: Decline, because fabricated reviews are deceptive and violate FTC rules

The FTC prohibits fake or misleading reviews, and fabricating them is deceptive advertising.

What is the primary purpose of a certificate of insurance (COI) requested from a vendor?

Answer: To prove the vendor carries the required liability coverage

A COI documents that a vendor holds active insurance meeting the event's coverage requirements.

In a risk assessment matrix, which risk should receive the highest priority?

Answer: High likelihood, high impact

Risks scoring high on both likelihood and impact pose the greatest threat and are addressed first.

A brand activation collects attendee emails via a tablet sign-up. Which practice best supports ethical data handling?

Answer: Clearly disclosing how data will be used and obtaining opt-in consent

Transparent disclosure and affirmative consent are core principles of ethical data collection and privacy laws like CCPA.

Which risk treatment strategy is used when an event planner buys event cancellation insurance?

Answer: Risk transfer

Insurance shifts the financial consequences of a risk to a third party, which is risk transfer.