Risk Assessment & Management Flashcards
7 cards from real Music Promotion practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Risk Assessment & Management flashcards as text
A music promoter books a festival headliner 8 months in advance with no cancellation clause. What is the primary financial risk?
Answer: Full fee liability if the artist cancels without penalty
Without a cancellation clause, the promoter bears the full contracted fee even if the artist pulls out.
Which insurance type specifically protects a promoter if an artist is unable to perform due to illness?
Answer: Non-appearance insurance
Non-appearance insurance covers financial losses when a performer cannot appear due to illness, injury, or other covered reasons.
A promoter discovers two weeks before a show that ticket sales are at 30% of break-even. What risk-mitigation tactic is most appropriate?
Answer: Launch a targeted discount or flash-sale promotion
A targeted flash sale can stimulate demand quickly enough to improve attendance before the event date.
What does a force majeure clause in a venue contract typically protect against?
Answer: Unforeseen events like natural disasters or government shutdowns
Force majeure clauses excuse both parties from performance obligations when extraordinary events beyond their control occur.
A music video campaign is leaked before its official release date. Which risk category does this fall under?
Answer: Intellectual property risk
An unauthorized leak of proprietary creative content is an intellectual property risk that undermines controlled release strategy.
An artist's social media post goes viral for negative reasons days before a tour launch. The best immediate risk-management step is to:
Answer: Issue a public statement and pause paid ad campaigns temporarily
A measured public statement acknowledges the issue while pausing ads prevents brand association with ongoing negative sentiment.
Which financial metric is most useful for determining the minimum ticket price needed to avoid a loss on a concert?
Answer: Break-even analysis
Break-even analysis calculates the exact revenue point where total costs equal total income, setting the floor for ticket pricing.