Nobody saw a global pandemic on the horizon in 2019. The world had dealt with virus outbreaks before, and survived, and recovered. Everyone knew that the threat of a global virus outbreak was possible, but the severity and scale of COVID-19 have presented not many, if any, predicted. So, now we know, and now we can plan accordingly by performing a risk assessment.
Before COVID-19, risk mitigation for the amusement and entertainment industries mainly focused on preventing guest and employee injuries. We concentrated on equipment safety and fire prevention. 2020 has taught us all a lesson in looking outside of what we know and adopting a 360-degree threat assessment approach.
A 360-degree threat assessment approach involves a full team effort. It means fully opening up and welcoming scrutiny and inspection to uncover hidden threats that can impact or even destroy your business. In this article, we will break down what a 360 Degree Threat Assessment looks like as we enter 2021.
Risk assessment checklists
A 360-degree threat assessment doesn’t mean ignoring traditional exposures to loss. Operators must still consider and have a plan for common threats. The primary focus for theme park operators remains the same — managing the risks and hazards to specific rides, including assembly, operating, and dismantling. Other common threats that still include:
- Property Damage
- Guest Injuries
- Employee Injuries
- Employee Theft
Outside of the primary common threats owners face are several financial threats. The economy is unpredictable, and amid a pandemic and a contested transition of presidential power, its stability is more uncertain than in “normal” times. Aside from an unpredictable economy, other financial threats to consider include:
- Cash Flow Management
- Supplier or Subcontractor Financial Stability
- Fair or Festival Financial Stability
- Succession Planning and Company Perpetuation
This category of threats features new threats and types of risk many have not had to navigate in their life until now. We now know that the risk of a global pandemic is real. This year, the chance of civil unrest has reemerged, adding a potentially disastrous threat to the mix. Societal hazards that must be considered include:
- Civil Disobedience
- Flash Mobs
- Government Shutdowns
Planning your 360 Degree Threat Assessment
The above list is not all-encompassing, but it highlights the significant concerns and new threats that must be considered after 2020. At this point, you’re probably ready to take action and make a plan to protect your business.
Now is the time to take an honest deep dive look into your company. After you have evaluated and identified explicit threats, work with your team members and advisors to address each identified risk. Develop a plan that helps avoid, manage, and reduce all risks.
McGowan Allied Specialty Insurance deals with brokers and direct customers in the entertainment and amusement industry. We serve many industries and offer coverages like general liability, property, and more. Learn more.