Vizjak, Ana and Rudančić- Lugarić, Andreja and Milas, Martina (2011) The importance of risk management as a key component of event organization in tourist destination. In: The 5th International Scientific Conference "Entrepreneurship and Macroeconomic Management: Reflections on the World in Turmoil".
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Sažetak
On a global level, event tourism gains more and more significance. Creativity, innovation, high-level quality and perfection are crucial factors for achieving the event attendees' satisfaction and the success of the event being organized. The organization of an event always includes certain risks, which represent the probability and consequences of planned goals that are not reached. It is of vital importance to identify risks during the organization of event and remove or at least minimize them. This represents a demanding task, which is the area of risk management activities. Risk management has been identified as the priority when "doing" the modern business. The modern business conditions in each market, as well in tourism market, are characterized as a turbulent and permanently changing environment. On the one hand, supply follows the changes of demand's preferences, while on the other, demand's expectations are growing and it is harder and harder to satisfy it. Risk permeates every aspect of event organization, which risk management becomes a high priority activity in this complex process. Effective risk management requires certain steps of identification, evaluation, managing, monitoring and eliminating the risky circumstances as key components in managing the risks related to event organization. With reference to the long-term global supply and demand, event tourism can clearly show its effectiveness in creation of added value to the tourist destination, but which success depends on effective risk management and avoidance of undesirable circumstances in the event's organization. The aim of this paper is to define risk management, and its theoretical framework, present phases and discuss methods in managing the risks in the detailed process of the event's organization. The purpose of the paper is to emphasize the key role of risk management in the strategic management of event tourism. The starting points of the paper are modern world theories and practices.
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