Towards a More Resilient Festival Industry: An Analysis of the Adoption of Risk Management Models for Sustainability

Katalin Lorincz, Katalin Formadi () and Ildiko Ernszt
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Katalin Lorincz: Faculty of Business and Economics, Institute of Business Sciences, University of Pannonia, 8200 Veszprem, Hungary
Katalin Formadi: Faculty of Business and Economics, Institute of Business Sciences, University of Pannonia, 8200 Veszprem, Hungary
Ildiko Ernszt: Institute of Applied Management Sciences, University of Pannonia Nagykanizsa—University Center for Circular Economy, 8800 Nagykanizsa, Hungary

Risks, 2023, vol. 11, issue 2, 1-18

Abstract: The COVID-19 pandemic has had a significant impact on numerous industries, including the event industry, resulting in widespread disruptions. The widespread cancellations of festivals have been a direct consequence of the pandemic, and, following the reopening, those that have taken place have had to implement changes in response to the new guidelines and regulations created as a result of the pandemic. In this study, we examine the experiences of festivals held in 2021 in the Veszprém–Balaton 2023 European Capital of Culture region (VEB 2023 region). The study aims to adapt the PwC Risk Management Model and identify its four pillars (1: detect; 2: protect; 3: react; 4: restore) in the case of festivals. Our study outlines how festival organizers have faced unprecedented challenges and risks (detect), how they survived in complete uncertainty (protect), what lessons they learned, and what risk management decisions they made as a challenge of the pandemic period from a consumer perspective (react). The present study utilized a qualitative research methodology and involved conducting structured interviews with a total of 19 event organizers from five different events. In addition, to gain a comprehensive understanding of the sustainable consumption habits of festival visitors, a questionnaire survey was administered yielding 1133 responses. The biggest challenges for the organizers during the times of the pandemic were uncertainty and unpredictability, with increased financial, human, and mental risks and burdens. However, the positive benefits of the pandemic period and the future developmental directions of sustainable festivals were also highlighted (e.g., small-scale, family-friendly events). Regarding the future, the aspects of greening aspirations, a need to reflect on the social-environmental criteria of sustainability, and more flexible management decisions to deal with uncertainty have emerged among the festival organizers (restore). The research has revealed that festival visitors themselves will be important allies in the introduction of sustainable measures. The research result helps festival organizers to adapt more effectively to the new socio-economic circumstances caused by the pandemic.

Keywords: economic challenges; risk; uncertainty; PwC Risk Management Model; sustainability of festivals (search for similar items in EconPapers)
JEL-codes: C G0 G1 G2 G3 K2 M2 M4 (search for similar items in EconPapers)
Date: 2023
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