Riverfest: Managing Risk and Measuring Performance at Little Rock's Annual Music and Arts Festival

Abstract

This case is based on the experience of one of the authors as executive director of Riverfest, Arkansas' largest annual music and arts festival, held in Little Rock on Memorial Day weekend. The case provides an opportunity to identify business process risks, evaluate and consider improvements to controls for those risks, and develop ways to measure elements of Riverfest's operations that can help improve or monitor the organization's performance. This case demonstrates how managing business risks and measuring business performance are critical for all types of organizations, including those not driven by profitability objectives. The case centers on Merle Flowers, a CPA who specializes in business process measurement and risk management for major events. Merle has been hired to provide Riverfest with suggestions on how to improve risk management and performance measurement for its key processes, including entertainment, cash management and security, sponsorship arrangements, vendor and beverage arrangements, physical security, and budgeting and reporting. This engagement is a value-added service that Merle is providing Riverfest, which has been successful in the past but is looking for continuous improvement opportunities in the future.