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
When a tour is booked across multiple countries, what financial risk must the promoter specifically address that domestic tours do not face?
Answer: Currency exchange rate fluctuation affecting net revenue
International tours expose promoters to exchange rate risk, where local revenue may convert to less home-currency value than projected.
What is the primary role of an escrow arrangement in a large music event contract?
Answer: To hold artist deposits securely until performance obligations are met
Escrow protects both parties by holding funds with a neutral third party until contractual conditions are fulfilled.
A newly signed artist is scheduled for a major press tour. What key risk should the promoter assess before media commitments are made?
Answer: The artist's preparedness and communication skills for high-pressure interviews
An unprepared artist can generate negative press or gaffes that damage the campaign, so readiness must be vetted beforehand.
A promoter launches a crowdfunded album campaign that fails to reach its funding target. Under most crowdfunding platforms' rules, the financial outcome is:
Answer: All pledges are returned to backers and no funds are collected
Most crowdfunding platforms use an all-or-nothing model where funds are only collected if the goal is fully reached, otherwise pledges are refunded.
Which type of risk analysis assigns numerical probability and financial impact values to potential event risks?
Answer: Quantitative risk analysis
Quantitative risk analysis uses numerical data to estimate the likelihood and financial magnitude of identified risks.
A music promotion firm stores all artist contracts on a single unencrypted laptop. What risk does this create?
Answer: Data breach and confidentiality risk
Storing sensitive contracts on an unencrypted device creates serious data breach risk if the device is lost or stolen.
An artist's manager requests that the promoter advance tour expenses before ticket revenue is collected. The prudent risk-management response is to:
Answer: Advance only a capped percentage tied to confirmed ticket sales projections
Capping advances as a proportion of projected revenue limits exposure if ticket sales underperform and the advance cannot be recouped.