CED CED Risk Management & Contingency Planning 1 — Questions and Answers
Question 1: Which document outlines predetermined responses to potential event failures such as power outages or severe weather?
- Contingency plan (Correct answer)
- Marketing brief
- Vendor contract
- Run-of-show
Correct answer: Contingency plan
A contingency plan documents predetermined responses to identified risks so the team can act quickly when disruptions occur.
Question 2: What is the primary purpose of a risk matrix in event planning?
- To prioritize risks by likelihood and impact (Correct answer)
- To list all vendors alphabetically
- To schedule rehearsals
- To track attendee registrations
Correct answer: To prioritize risks by likelihood and impact
A risk matrix plots risks by their probability and potential impact, helping planners prioritize which risks need the most attention.
Question 3: An outdoor ceremony faces sudden heavy rain. Which pre-event action best demonstrates effective risk management?
- Securing a tent or indoor backup venue in advance (Correct answer)
- Canceling the event last minute
- Notifying guests only after rain begins
- Reducing the guest list
Correct answer: Securing a tent or indoor backup venue in advance
Securing a backup venue or tent before the event is the hallmark of proactive risk management for weather-dependent functions.
Question 4: Force majeure clauses in event contracts primarily protect against:
- Unforeseeable events beyond either party's control (Correct answer)
- Vendor price increases
- Attendee no-shows
- Décor damage
Correct answer: Unforeseeable events beyond either party's control
Force majeure clauses excuse contract obligations when extraordinary, unforeseeable circumstances — like natural disasters — prevent performance.
Question 5: Which type of insurance is most essential for protecting an event against third-party bodily injury claims?
- General liability insurance (Correct answer)
- Directors and officers insurance
- Business interruption insurance
- Equipment rental insurance
Correct answer: General liability insurance
General liability insurance covers third-party claims for bodily injury or property damage that occur during the event.
Question 6: When should a CED professional first conduct a formal risk assessment for an event?
- During the initial planning phase (Correct answer)
- One week before the event
- On the day of the event
- After the event debrief
Correct answer: During the initial planning phase
Conducting a risk assessment during the initial planning phase allows sufficient time to implement mitigation strategies before deadlines close in.
CED CED Risk Management & Contingency Planning 1
Which document outlines predetermined responses to potential event failures such as power outages or severe weather?