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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.

Initial Post

Read this article: Nine Hollywood Films Fraught with Risk, RMMagazine.com, 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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