Risk Management & Compliance Flashcards

A planner is contracting with a destination management company (DMC) in a country with different legal standards. What risk mitigation step is MOST important?

Answer: Specify which country's laws govern the contract and include a dispute resolution clause

Including a governing law and dispute resolution clause in international contracts prevents ambiguity about which legal system applies in a dispute.

Which type of insurance specifically covers financial loss when a keynote speaker cancels at the last minute?

Answer: Event cancellation/interruption insurance

Event cancellation/interruption insurance can cover losses from non-appearance of key speakers or performers when pre-specified in the policy.

When is it appropriate to activate an event's emergency evacuation plan?

Answer: When any threat to life safety is confirmed or credibly suspected

Life safety threats—confirmed or credibly suspected—warrant immediate evacuation activation without waiting for external authorization or client approval.

A meeting professional is planning an event for a pharmaceutical company that involves healthcare provider (HCP) attendees. Which compliance area adds significant complexity?

Answer: Sunshine Act (Open Payments) reporting requirements

The Physician Payments Sunshine Act requires pharmaceutical companies to report and publicly disclose payments or transfers of value to HCPs, creating detailed compliance obligations at events.

An event planner suspects a vendor is engaging in price-fixing with a competitor. What is the MOST appropriate action?

Answer: Report the suspicion to the organization's legal counsel and procurement team

Price-fixing is an antitrust violation; the correct step is to escalate to legal counsel who can investigate and advise on proper legal remedies.

What distinguishes a 'risk transfer' strategy from a 'risk avoidance' strategy in event management?

Answer: Risk transfer shifts financial responsibility to another party; avoidance eliminates the activity causing risk

Risk transfer (e.g., purchasing insurance) shifts the financial burden of a risk; risk avoidance removes the risky activity from the plan entirely.

A planner learns that a proposed event venue does not have an Americans with Disabilities Act (ADA)-compliant restroom on the main event floor. What is the CORRECT response?

Answer: Require the venue to provide ADA-compliant facilities or select a different venue

ADA compliance is a legal requirement for public accommodations; the venue must remedy the deficiency or the planner should select an accessible alternative.