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Madrid 2,17 EUR 0,03 (+1,21 %)

INSURANCE | 18.02.2020

Managing the risks of Carnival

Jonson Marques

Technical Director of Companies at MAPFRE

Carnival has become one of the most popular festivals in Brazil. When we look at the figures relating to this event, its cultural and economic importance for the country is clear to see. A survey recently published by the Confederação Nacional do Turismo (Brazilian Tourism Confederation — CNTur) indicates that tourism activities related to this national holiday will this year bring in around 8 billion Brazilian reals and generate 25,400 temporary jobs between January and February.

 Despite the growth in spectators at Carnival in larger cities, the CNTur study suggests that Rio de Janeiro will remain the state capitalizing most from the festival, with 2.32 billion Brazilian reals. Even with these estimates, to ensure that all the agents involved in organizing the events achieve their expected return, it is key that not only do these events take place, but that there is accident prevention, so that unforeseen events do not result in costs that make the desired return impossible. 

 To do this, risk management is the most efficient and essential path. This type of analysis needs to take into account all the variables to which those organizing and participating in the carnival will be exposed. MAPFRE has been the insurer for the Marquês de Sapucaí Sambadrome Carnival for over ten years. This year, 200,000 people are expected to gather at the venue to attend shows and samba school parades.

 Each year we create a policy that is completely tailored to the event. This is because, in addition to taking into account factors that are beyond human control—such as the weather, which can put a stop to the celebrations—and incidents that have already been mapped, we always analyze risks that arise by applying new technologies to the Carnival floats.

 And here is the secret of efficient risk management: think of it as a living process that is constantly evolving. New situations and agents that were not mapped will always arise and it is essential to be fully prepared for them. As a result, whether this plan is being developed for a large event or for a company’s operations, taking into account all the variables and constantly updating the risk map is the way to efficiently reduce risk.