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2017

Escher Risk
Management
Proposal

M.C.Almanza
May 1, 2017
Kiara L. Music, Venue Owner
1101 E 3rd Street
Long Beach, CA 90802

Dear Ms. Music,


The team here at Escher Risk Management Services
would like congratulate you on your new business and thank
you for considering us for your impending risk management
Escher Risk needs.
Management Escher Risk Management has provided quality
planning and assistance for new businesses, such as yours,
Services since 2012. Our mission strives to protect and support our
Office clients needs by creating risk management plans that
600 E. Broadway, Long consider the unique aspects of your business. Our team
Beach, CA 90802 consist of four risk management specialists with experience
in the fields of event and facility management. Our client list
Phone
includes the City of Long Beach, the Queen Mary, the
(562) 252 - 3781 Museum of Latin American Art, and the Gaslamp restaurant.
Fax Enclosed is the risk management proposal you
(562) 491 - 1210 requested, tailored to your venue needs. Here we will address
the risk management process, the role of the board of
Email directors, areas of operation, risk assessment, your specific
malmanza@escher.com needs, and implementation planning.
Website Thank you for your time. We look forward to your
response.
www.escherservice.com
Partners Cordially,
Mar Almanza
Kassy Riggle Mar C. Almanza, President and CEO
TAna Christiansen
Sarah Banuelos
Overview of the Risk Management Process

The overall risk management process aims to ensure that your program goals will remain
unaltered even as inherent and negligent risks are minimized. While no venue can be completely
risk-free, a proactive approach aids your business in managing potential program and finance
risks. You can protect your venue from reputation, integrity, and morale damages by following
the three main steps of the risk management process: development, implementation, and
management.

1. Development

The beginning of the risk management process calls for you to identify your duty and the
potential risks you may be responsible for in your business. The identification of risks can be
done by way of lists and confiding in your staff for input. The risks you gather from this research
will subsequently be assessed in order to determine their treatment.

2. Implementation

The treatments and techniques gleaned from the risk management development must then be
effectively communicated to all those involved in the business and hold duties to your clients.

3. Management

The effective communication that is vital to the implementation of your risk management plan
must have a proper channel to be conveyed through. This is achieved by appointing a risk
management coordinator and committee with leading authority and responsibilities that are
clearly outlined in a policy statement. The opportunity for constant input of risk management
should be given to employees so that changes to your business do not create new risks that are
missed.

Roles & Responsibilities

The risk management process, as a whole, requires the full participation of all risk
management and general employees. The Board of Directors must manage and inform all
employees about practices that could minimize risks. They must create a risk management plan
that can evolve with business and fit your mission in order to succeed. While they may step in on
handling major risk situations, they must also appoint either a risk management committee or
coordinator to manage general risk issues. One of the risk management coordinator or
committees duties would be to develop the risk management plan that consists of staff
responsibilities, procedures, and policies. Furthermore, they will use this plan to create a staff
guidebook and see that they are trained in identifying, classifying, treating, and documenting
risks. This will encourage general staff to be active in taking the lead on mitigating the day-to-
day risks they encounter as they work. In your business, it is likely that your board of directors
and your risk management committee, if you chose one, will be of moderate size. In any case
each position is vital to ensuring your risk management plan is kept at top priority as they all
have a role in the development and implementation process.

Areas of Operation

In tailoring your risk management plan, we will explore the various areas of your venue
operation. Here you will find a sample of what each area of your operation might consider.

Personnel

Hiring procedures should ensure that qualified employees are hired and discrimination does not
influence the process. Procedures for sexual harassment, complaints, evaluation, and discipline
should also be established, reviewed, and updated as laws do. Training policies should
effectively teach staff members their roles and responsibilities. Waivers, consent for emergency
treatment, and necessary exams should also be utilized as needed.

Facilities

While your venue is a renovated warehouse, it will hold various facilities such as a restroom,
stage, and refreshment area. Each of these areas will require routine inspection with a checklist
that covers its specific maintenance needs. Your venue will further require an emergency
evacuation procedure and emergency evacuation drills for the staff to practice. This would be in
addition to being able to identify the location of the emergency exits and equipment.

Conduct & General Supervisory Practices


Event supervisors should fulfill required responsibilities and qualifications in order to execute
their roles properly. Their supervisory plan that would outline this should also include the
managing of guest and staff behavior, along with accident report writing, care of the injured,
security and access control.

Crisis Management & Emergency Action Plans

Crisis and emergency management plans should include detail descriptions on notifying
authorities and writing accident reports. Emergency trainings should be provided to staff so that
they are equipped with the confidence and knowledge not to hesitate in such a situation.

Insurance Coverage

Insurance should cover your venues foreseeable needs as it will cover you in the possible event
that you are sued for any reason. This is a necessity that cannot be over stated as it could aid you
in the event of other situations such as natural disasters, workers compensation, and more.

Risk Assessment (Reduction/Avoidance Strategies)

Assessing and treatment of risks can be done by the use of a clear and simple risk
treatment matrix that assesses the frequency and severity of risks. Whether the frequency of the
risk is high or low is determined by how often it occurs while the severity is determined by how
damaging the risk is. These two characteristics of the risk in turn determine the treatment of the
risk itself, whether it is the avoidance, reduction, transfer, or retaining the risk.

Avoidance (High Frequency/High Severity)

In the case when a risk is highly damaging and occurs often it is best to consider eliminating the
risk altogether.

Reduction (High Frequency/ Low Severity)

In approaching risks that occur often and have a low severity it is best to reduce the frequency by
establishing safety procedures.

Transfer (Low Frequency/ High Severity)


Risks that are highly damaging and occur rarely are treated best by transferring the responsibility
to either the participants or an independent provider. This transfer of responsibility is often done
by way of waivers and contracts.

Retain (Low Frequency/ Low Severity)

Risks that hardly present themselves and have a low severity are often retained by use of
insurance or indemnification. These treatments aid in defraying expenses.

Event Venue (Specific to Artist Showcase & Performances)

In keeping with our mission to address your venues specific needs we have provided a
few examples of your unique risks and our approaches to treating them.

Long Beach (Geography & Crime)

It is of great importance that you consider the geography surrounding your venue and such
matters relating as the possibility of a tsunami or earthquake. You would want these matters
covered in your insurance along with the possibility of theft.

Alcohol & Food

If you intend to serve alcohol, you will require a liquor license, adequately trained staff, and
safety procedures for guests in the event of alcohol poisoning or the need safe transport home.
Furthermore, you might consider blocking off sections for alcohol and food consumption so that
art displays art not damaged. Food must be properly stored and food prep areas must be cleaned
to the standard for food inspections. Food will also require a separate training and certification.

Crowd Control

With the space you have, you might consider having a door attendant to control the flow of
guests in and out of your venue. This will help prevent overcrowding your venue and violating
fire codes. Depending on the event, you might also consider ushers, ticket takers, and further
security. This will keep guests safe from overheating and art displays safe from being damaged.

Event Insurance

You will want to acquire an event insurance policy that covers physical and financial damage to
your venue, staff, and guests. This should include coverage of instances such as event
nonappearance/cancellation, crimes, and fire.

Implementation Planning

The implementation of your risk management plan will rely heavily on effective
communication. It is of upmost importance that management staff properly conveys the
importance of employee roles in executing and being an active participant in the risk
management process. Our service provides unique trainings that utilize visual, auditory, and
kinesthetic learning styles that engage employees so that they are aware of the power they have
in preventing incidents. Furthermore, we will work with your risk management coordinator or
committee to create concise and helpful manuals to provide to your employees. These guides
will provide information beyond prevention and onto procedures in the event an incident does
occur and must be handled immediately. These procedures would include aspects such as
incident reports, appropriate language, and emergency contact information.

From Escher Risk Management

We would once more like to congratulate you on your new business and thank you for
considering us in aiding you with your risk management planning. We make every effort to
provide personal service and invite you to feel free to contact us with any questions or concerns
you may have. We hope to have the pleasure in providing you with the support and protection to
make your risk management experience as effective and as reassuring as possible. Thank you for
your time and we will hear from you soon.

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