How can you manage risk in the entertainment industry?

1 Legal risks

One of the most obvious and serious risks in the entertainment industry is the possibility of legal disputes, claims, or lawsuits. These can arise from various sources, such as contracts, copyrights, trademarks, licenses, royalties, defamation, privacy, or personal injury. Legal risks can have significant financial and reputational consequences, and can also delay or derail your projects. To manage legal risks, you need to consult with qualified lawyers, review and negotiate your contracts carefully, secure the necessary permissions and clearances, protect your intellectual property, and comply with the relevant laws and regulations.

2 Financial risks

Another major risk in the entertainment industry is the uncertainty of financial outcomes. The entertainment industry is highly competitive, dynamic, and dependent on consumer preferences, market trends, and external factors. You may face challenges such as budget overruns, revenue shortfalls, cash flow problems, or funding cuts. Financial risks can jeopardize your profitability, sustainability, and growth. To manage financial risks, you need to plan and monitor your budget, forecast and track your revenue, diversify your income sources, secure adequate funding, and manage your expenses and debts.

3 Operational risks

Operational risks are the risks that arise from the execution and delivery of your projects and activities. These include risks such as equipment failure, technical glitches, human errors, accidents, delays, or cancellations. Operational risks can affect your quality, efficiency, and reliability, and can also cause dissatisfaction, complaints, or losses. To manage operational risks, you need to establish and follow standard procedures, protocols, and policies, train and supervise your staff and contractors, maintain and test your equipment and systems, ensure safety and security, and have contingency plans and backup options.

4 Creative risks

Creative risks are the risks that relate to the artistic and aesthetic aspects of your projects and products. These include risks such as creative differences, artistic disputes, plagiarism, criticism, or negative feedback. Creative risks can impact your vision, originality, and reputation, and can also lead to conflicts, disputes, or lawsuits. To manage creative risks, you need to communicate and collaborate with your creative partners, respect and acknowledge your sources and influences, seek and accept constructive feedback, and be open to innovation and experimentation.

5 Ethical risks

Ethical risks are the risks that involve the moral and social implications of your projects and products. These include risks such as ethical dilemmas, controversies, scandals, or backlash. Ethical risks can harm your values, principles, and integrity, and can also trigger boycotts, protests, or sanctions. To manage ethical risks, you need to be aware of and adhere to the ethical standards and codes of conduct of your industry and profession, respect and promote the rights and interests of your stakeholders, address and resolve any ethical issues or concerns, and be transparent and accountable for your actions and decisions.

6 Strategic risks

Strategic risks are the risks that stem from the alignment and adaptation of your projects and products to the changing environment and expectations. These include risks such as strategic misalignment, competitive threats, market shifts, or disruptive changes. Strategic risks can affect your relevance, competitiveness, and sustainability, and can also result in missed opportunities, lost market share, or reduced value. To manage strategic risks, you need to define and communicate your vision, mission, and goals, conduct regular market research and analysis, monitor and evaluate your performance and progress, and adjust and improve your strategies and tactics.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?