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 promoter discovers that a key sponsor's brand has become politically controversial right before a campaign launch. The most appropriate risk response is:
Answer: Assess the morality clause and consult legal counsel before deciding to continue or exit
Reviewing the contract's morality or exit clauses and getting legal advice determines whether the promoter has grounds to exit without penalty.
What is the primary risk of relying exclusively on organic social media reach for a new artist's album launch?
Answer: Algorithm changes can drastically reduce visibility with no warning
Social platform algorithms are frequently updated and can suddenly deprioritize organic content, leaving campaigns without paid backup stranded.
A promoter is considering booking an unproven international act for a 5,000-seat venue. Which risk-reduction strategy is most appropriate?
Answer: Negotiate a smaller guaranty and higher back-end split tied to actual ticket sales
A lower guaranty with a performance-based back-end shifts financial risk to the artist if demand doesn't materialize while preserving upside for both.
Which step is most critical immediately after identifying a new risk in an active music promotion campaign?
Answer: Document it in a risk register and assign an owner and mitigation action
Logging risks in a register with assigned owners and action plans ensures accountability and systematic follow-through on mitigation.
An artist's tour bus breaks down 200 miles from the next venue. Which pre-planned risk mitigation would most directly address this situation?
Answer: A logistics contingency budget and backup transport agreement
A pre-arranged backup transport contract and contingency budget enables rapid response to equipment failures without scrambling for ad hoc solutions.
A promoter's digital ad campaign targets a demographic that turns out to have low purchasing power for the ticket price. This is best classified as:
Answer: Market segmentation risk
Targeting the wrong demographic with mismatched purchasing power is a market segmentation risk that wastes ad spend and depresses sales.
Why is it important to build a cash reserve before launching a large-scale music tour promotion?
Answer: To cover unexpected cost overruns without halting operations or defaulting on contracts
A cash reserve acts as a financial buffer that allows the promotion to absorb unforeseen expenses — like venue damages or cost overruns — without collapsing.