Risk Management… when do you call the party off?

It’s been bothering me for a week now… I’ve been polling event people as well as laymen for mixed results.

Here is the case that got me thinking…

It seems one of the banks was recently holding a hospitality event for some the SIBOS delegates (big banking conference). Obviously this event was a chance to make some contacts sell some products, no doubt big money involved. The chance of getting this particular group together again was impossible. The event had obviously been organized a year in advance as they took over the Apex on the 56 th floor of Central Plaza. This perfect space is a luxurious perch directly across from the Convention Center and the two main hotels most of the delegates were staying. Pretty intimate can only fit 60 pax for cocktails, also only has one lift. Guests were invited for 6pm for cocktails.

Enter Typhoon Koppu… Hong Kong Observatory announced it would raise the signal 8 at… 6pm. For those not familiar with Hong Kong Typhoon signals they are based on distances to the territory Signal 1 is a standby signal means one is in the area and be warned it may come this way(weather is hot hot and sticky with a funny haze all around). The next highest is Signal 3 is the strong wind signal means gusts can reach up to 110km/h (generally a bit blustery with rain and a welcome relief after the stifling heat). Then comes Signal 8, during this the stock market closes, transportation shuts down gusts of wind can reach 180km/h. The peak of the Signal 8 is usually around 12 hours after the signal is issued. Most people cheer and head to the video store on their way home (many to the pub for a lock in session). Then comes 9 and 10, means direct hit, both very rare (in my 20 years here only seen a 10 twice (lol, no really)).

So you got 60 VIPs, they got nowhere to go and when it’s finished they just gotta cross the street. You are ready for them, the champagne is cold, besides they will be stuck, they can’t move on to the competition’s party, you can sell em more product!

It is a high end lock in isn’t it? BRING IT ON!!

Well that is obviously what was going through the client’s head…

What was going through the event manager’s head?

What would I have done? Mmmm well here’s a few of the things I would have considered..

The Storm   it doesn’t look that big and this typhoon season has been very calm, heck last several years have been pretty calm.

Venue safety , probably all ok the building used to be the tallest building in Asia (for bout a month) has been around more than 10 years or so has weathered several big storms. Only one lift isn’t good and 56 floors is a long way down.

Timing, the signal 8 is raised at the same time the party starts so when the guests are arriving the storm won’t be too bad yet. It will build during the event making leaving the more dangerous time.

Guests safety, in all likelihood biggest risk is getting blown over as they stumble across the street back to their hotel room, sure something might blow down and land on them but in that area, very unlikely.

Staff Safety , now this is a different story. After clean up and strike staff will be leaving later making the possibility of the storm being stronger. Depending on the size of the set up, lighting décor etc staff could be leaving as the storm gets big. Most of the staff probably live on Kowloon side making the journey quite far, luckily the underground is probably running, so if they live close to an MTR not too bad but not good. The trucks and vans still need to drive through it.

Insurance? Not a chance, all insurance policies will rule “inclement whether/act of god” anything happens the host/client will be screwed. If an employee is injured and you made them stay after a signal 8, not sure here but besides civil liabilities I wouldn’t be surprised if there was a criminal possibility for the employer (i.e. production company screwed).

Other Risks? Big one for me would be reputation. I would not want to see my client splashed on the headlines for “accident in typhoon party”.

So what would I do? I would advise my client of the risks and recommend cancellation. I would be very thankful my contracts all have reschedule clause in case of typhoons. If the client insisted on going ahead… I’d send the crew that didn’t want to spend the night with me home and roll up my sleeves and jump behind the bar. After all sometime the show must go on…

SIBOS Struck by Lightining

BTW the thing that got me thinking…this picture was the front page on the following day.. not Central Plaza, this is The Centre only about a mile up the road.