A Study on the Risk-Analysis of a Large-scale Chinese Concert1** Title: Analysis of the risks of large-scale concerts in China **
** abstract: ** This thesis is to analyze the risks of domestic large-scale concerts. With the vigorous development of the domestic entertainment industry, large-scale concerts were increasing day by day, but there were many risk factors that needed to be discussed in depth.
##I. Market and Competition
In recent years, many famous artists had held concerts, such as Jay Chou and Mayday. During a certain period of time, the concert schedule was relatively dense. This intensified the competition between the concerts, and there was a risk of audience diversion. With the overall global economic situation not optimistic, consumers may be more cautious in entertainment spending, leading to uncertainty in concert ticket sales.
##2. Investment risks
###(1) Investigate risks before investment
1. ** Artist-related factors **
- The artiste's acting skills, popularity, and reputation were the key factors. If an artiste had a negative incident or a decline in their professional performance, it might affect the attraction and box office of the concert. For example, if the artist did not perform well at the concert, the singing level did not meet the expectations of the audience, or the artist's image was damaged.
2. ** Elements of the organizer and the operator **
- The operation ability and strength of the organizer and performance organization were crucial to the success of the concert. A lack of relevant qualifications could lead to compliance issues during the concert preparation process; a lack of past success stories could indicate a lack of experience in organizing and coordinating. If they did not have a good understanding of the concert's detailed plan, such as unreasonable arrangements for the performance team, inadequate media publicity, poor selection of the venue, overspending of the event budget or inaccurate revenue forecast, rough production of the stage, imperfect ticketing plan, etc., it would bring risks to the concert.
3. ** Concert-related factors **
- The creativity and novelty of the concert content and the design of the interaction segment were important factors in attracting the audience. The lack of innovative content, outdated performance forms, or poor interaction with the audience may lead to a lack of interest.
4. ** Capital and income allocation factors **
- Whether the investment funds were used for specific purposes and the rules for the distribution of profits were unclear, it was easy to cause conflicts between the investors. For example, the diversion of funds might affect the normal preparations for the concert, and disputes over the distribution of profits might lead to the breakdown of cooperation.
5. ** Partner related factors **
- He also needed to understand the situation of other partners, investors, and sponsors. Poor coordination between partners, the risk of investors withdrawing their funds, and the unmet requirements of sponsors could all have a negative impact on the concert.
###(II) Investment Model Risks
1. ** Principal guaranteed fixed income investment risk **
- Under the capital preservation fixed income investment model, even if the contract agreement is valid, there may be situations where it is impossible to execute the payment. If the investee's business condition is poor or the credit is bad, the investor may face the risk of not being able to recover the principal and income. Although a mortgage or guarantee could be set up, it also depended on the value of the collateral and the ability of the guarantor to fulfill the contract.
2. ** Risk-sharing investment risk **
- The risk-sharing investment model involved multiple parties participating in the entire process of hosting and operating the concert. Due to the complexity of the concert operation process, it involved many links. It was easy for the parties to have differences of opinion and disputes in preparation, planning, implementation, resource integration, external signing, cost accounting, and profit distribution. For example, poor management of investment funds co-management accounts, lack of supervision of financial accounts by investors, unclear agreement on the method and cycle of dividends, lack of agreement on how to deal with insufficient investment principal or surplus, change and termination of contracts, unclear responsibilities for breach of contract, etc., especially in the event of unexpected situations such as lack of personnel, refund of tickets, lack of performance times, performance accidents or accidents, box office inconsistent with the actual situation, etc. If there is no solution agreed in advance, It would cause many problems.
##3. Security risks
A large-scale concert would have a large audience, and the structure of the stands might be risky. For example, a spectator stand with a suspended jump structure would have one end fixed and the other end suspended. When the audience jumped in unison and the frequency was consistent with the natural frequency of the spectator stand, resonance would occur. Resonance would cause the vibration of the structure to increase, which could cause structural fatigue damage. In extreme cases, there would even be the danger of the stands collapsing, which would pose a serious threat to the lives of the audience.
##4. Artist-related risks
Artists 'performances at concerts could also be risky. For example, Andy Liu apologized for dangerous movements at his concert in Shanghai. An artist's accidental injury or performance mistake would not only affect the performance, but it could also cause public opinion to be affected, which would negatively affect the reputation and subsequent development of the concert.
In summary, domestic large-scale concerts faced many risks in terms of market competition, investment, safety, and artist-related risks. During the preparation and hosting of concerts, relevant parties needed to fully understand and actively respond to these risks to ensure the success of the concert.
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