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Risks to business come in many different forms. Financial risks, such as unforeseen factors that cause decreases in sales or increases in costs, can overwhelm a company’s financial stability. Operational risks, such as health and safety issues and production stoppages, can threaten the viability of a company’s operations. Other risks that companies encounter include reputational, legal, e-commerce, and risks associated with natural disasters. Risk management provides a means to protect companies against many of these risks. In this week’s discussion we will explore and examine risk in the entertainment business, using the film industry as an example.

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Read this article: Nine Hollywood Films Fraught with Risk,, Jared Wade, March 27, 2013.

Discuss all of the following questions:

  • Choose one of the nine movies listed in the article, and summarize what happened during production. Identify the risks that the film company faced prior to, during, and after production.
  • What do you think are some things that can be done to manage the risks in moviemaking?
  • Share your thoughts about what you think the term “risk management” means in relation to businesses within the entertainment industry.
  • Share examples of any other risk management situations in the entertainment business that you have experience with or know of.

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