Learning Week. #rethinklw

Transcription

1 Learning Week #rethinklw

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3 THE PANEL Jonathan Orr James Davies Shaun Coyne Alan Norris Chief Financial Officer Ryder Cup Principal Entertainment and Sports Integro Managing Director Hyperion Loss Adjusters Head of Contingency Talbot Underwriting Limited 3

4 SUMMARY An overview of the Ryder Cup. The insurance needs of a major event. Risk management considerations. Underwriting the event and 2010 What happens when things go wrong? 4

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6 RYDER CUP A BRIEF HISTORY Inaugural match played at Worcester, Massachusetts in 1927 GB & Ireland v USA contested Matches 1929, 1933 & 1957 = GB&I victories 1979 Europeans strengthen team 1985 Europe turns the tide 1987 Europe wins in America Since 1979: Europe 10 wins USA 7 wins 1 draw (1989) 5

7 RYDER CUP A GLOBAL EVENT 2014 Gleneagles, Scotland Television Coverage - live, delayed and highlights coverage broadcast to over 375 million homes in 185 countries Digital 4.9 million rydercup.com users, 2.2 million mobile users, 700k app downloads Media Coverage - Over 1,000 journalists, photographers and technical staff from 24 countries Staff - 7,500 people on site every day Legacy 350,000 children introduced to golf at school 6

8 RYDER CUP KEY COMPONENTS Sponsorship o Commercial Partners o Host Country o Venue Gate 240,000 Spectators Media and Digital Merchandising Hospitality -32,000 guests Travel packages Staging facilities 7

9 RISK MANAGEMENT THE OVERALL APPROACH Identify all risks Mitigate all possible risks through effective risk management Transfer risks that cannot be mitigated Insurance 8

10 RISK IDENTIFICATION Develop risk register Legal risks (losses & costs arising from legal actions) Physical risks (injuries to participants and public) Moral and ethical risks (adverse publicity to image/reputation) Financial risks (loss of asset value, replacement costs, loss of revenue etc) 9

11 RISK MITIGATION (EXAMPLES) On site inspection Security Slips and trips (Health and Safety) Temporary structures IT systems Transport routes/parking 10

12 ONLINE RISK REGISTER 11

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16 EVENT CANCELLATION Coverage Any cause beyond the control of the Assured 15

17 EVENT CANCELLATION - PERILS AND THE UNDERWRITING THEREOF Fire or material damage to venue including temporary structures. Adverse Weather. National Mourning. Terrorism threat or actual. Non-Appearance. Collapse of a temporary structure. Strikes. Communicable Disease. Travel disruption e.g. Volcanic Ash. 16

18 EVENT CANCELLATION KEY CONTRACTS Host Agreement Sponsorship Hospitality Ticket Refund Provisions TV 17

19 EVENT CANCELLATION FINANCIAL LOSSES COVERED Expenses Profit Additional Costs To Mitigate 18

20 RYDER CUP WHEN THINGS GO WRONG - THE INSURED S PERSPECTIVE. 11 th September - keep everything on track 14 th to 15 th September - postponement inevitable 16 th September - public announcement Are we fully insured? Week commencing 16 th September - First meeting with the Adjusters September 2001 to September working through the claims process and restaging the event 27th-29th September matches take place Further working through the claims process Legal action regarding recoverability of 2002 insurance premium Sign off 19

21 RYDER CUP STAGING, PARTICIPANTS Players The Belfry Venue Paying public Sponsors Hospitality customers Media Staging Contractors Others! 2005 Ryder Cup 20

22 RYDER CUP STAGING, TECHNICAL Transportation Site preparation Negotiations with police Security Emergency planning Health and Safety 21

23 ASCERTAINED NET LOSS HOW THE CLAIM WAS ADJUSTED! Ascertained Net Loss is defined as: That part of the Expenses which have been irrevocably expended in connection with the Insured Event, less such part of the Gross Revenue received or receivable, less any savings the Assured is able to effect to mitigate such loss. AND The reduction in Profit which the Assured can satisfactorily prove would have been earnt had the Insured Event taken place. Simple to understand?! 22

24 Ryder Cup 2010 Monday 20th September 2010 Pre-Event post build 23

25 Thursday 30th September 2010 Practice Day The 17th Green, where the Ryder Cup was won on Monday 4th October 24

26 Friday 1st October 2010 First Day Public viewing on the 16th Fairway 25

27 Saturday 2nd October 2010 Second Day Outside the International Pavilion in the Public Village 26

28 Sunday 3rd October 2010 Third Day Public viewing walkway on the 16th Fairway 27

29 Monday 4th October 2010 Extra Day Public viewing walkway on the 1st Fairway 28

30 Monday 4th October 2010 Extra Day Public walkway between the 4th and 5th Fairways 29

31 CONCLUSION 30

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33 Learning Week #rethinklw