What is the sale price of an item that is $ and is 15% off? Sit in your ASSIGNED seats.

$ * 15% (0.15) = $  $27.00 $ $27.00 = $$152.99

Bell Ringer / Attendance / Housekeeping Discuss weekly schedule Risk Management Lecture and Discussion Take Notes (YELLOW STARRED SLIDES ARE IMPORTANT) Left-Hand Side Activity

Define risk and describe the categories and classifications of risk. Name and describe four strategies for risk management.

The possibility of financial gain or loss or personal injury. Financial loss can occur if a business does not make a profit and has to close, resulting in the loss of all of the money the owners and investors have used to start the business. Personal injury can occur if a business does not take the appropriate safety precautions.

Natural Economic Human

Risks that are a result from natural causes such as the weather. Hurricane Katrina resulted in New Orleans population to decrease by 80%

Risks that occur from changes in overall business conditions. When many people are without jobs, they spend less money on sporting and entertainment goods. The sporting and entertainment industry has the risk of not selling merchandise or tickets.

Risks caused by human mistakes as well as by the unpredictability of customers, employees, or the work environment.

Pure Risk  risks when there is a possibility of a loss, but no chance to gain from the event. Flood closes a golf resort Speculative Risk  risks that occur when gains or losses are possible. NBA team comes to Louisville

Controllable Risk  risks that can be prevented or reduced in frequency. Sprinklers to reduce fire damage Uncontrollable Risk  events that keep a business from continuing such as the weather. Tornado blows away a dome

Insurable Risk  pure risks that could exist for a large number of businesses, includes those for which the probability and amount of loss is predictable. Fire Insurance Uninsurable Risk  risks that occur when the chances of risk cannot be predicted or when the amount of loss cannot be estimated. Louisville Bat’s have a losing season and fans do not come out to watch.

There are no methods to completely safeguard a business from risk; however, marketers must develop risk management strategies to ensure all probable risk are addressed. Risk Management  a strategy to offset business risks. Risk management is a systematic process of managing an organization’s risk exposure to achieve objectives in a manner consistent with public interest, human safety, environmental factors, and the law.

Avoiding risky situation takes planning on the part of sports and entertainment marketers. A business could be successfully sued if it has not taken steps to ensure compliance with safety laws that limit the liability for injury. Liable  the business is legally responsible for damages and might have to pay for the medical costs and other losses suffered by the injured person.

Businesses can handle risk by different methods: Purchasing insurance Property, Liability, Theft Risk Transfer Transferring risk to another company or the consumer Hires a company to host a firework display, include a disclaimer at the bottom of tickets Implement employee training / background checks Product warranties Risk retention Setting aside funds to use in case of a loss

Indiana State Fair – Payout Indiana State FairPayout Fan Falls at Turner Field – Video Fan Falls at Turner Field–Video Man Falls at RiverFront Stadium Amusement Park Injuries The Station Nightclub

ROis ROis

Ticket Prices Rise as Attendance Drops Dolphins Attendance

What risks do NFL teams have to prepare for during the season?

Not drafting good players – low ticket sales Safety Concerns (Escalators, Steep Seats, Appropriate Railing) Low ticket sales due to the economy Lockout (Ref or Players) Weather if you do not have a dome

Age Distribution Graph

According to Disney spokesperson Kim Prunty, “The warning signs indicate that ‘Mission: Space’ is not for every guest.” Epcot brochures available in English, German, and other languages warn visitors that riders of ‘Mission: Space’ and ‘Test Track’ should be in good health and free from high blood pressure, heart, back or neck problems, motion sickness, or other conditions that could be aggravated by this adventure.” There were 13 signs in the ‘Mission: Space’ cue that warn guests of certain medical conditions to not ride. A four-year-old boy died in June 2005 and a 49 year-old German tourist suffered a stroke and late died in April 2006 after riding ‘Mission: Space’ While two have died almost 9 million people have ridden since its 2003 opening. What risk do people assume when they board a ride at a theme park. What responsibility does the theme park have to the riders?

List four steps a sports venue could take to avoid risk injury to fans attending games?