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Risk Management Case Study of FIFA World Cup in Brazil
1. CASE STUDY - RISK
MANAGEMENT OF THE FIFA
WORLD CUP IN BRAZIL
[DATE]
[COMPANY NAME]
[Company address]
2. 1
Executive Summary
Three primary risks (operational, security, and safety and health) were identified and discussed in
the execution of a FIFA World Cup project by the use of the FIFA case study and personal analysis.
These three risk areas, for example, FIFA, have been thoroughly studied and used in the report to
show how they will impact a world cup project. Besides, a multi-phase risk evaluation process for
the identification, analysis, appraisal, diagnosis, control, and risk mitigation of a FIFA World Cup
project and its related risk management was developed. Four particular risks that are critical to a
project have been outlined, and recommendations have been made accessible about how to reduce
these risks.
3. 2
Table of Contents
Executive Summary........................................................................................................................ 1
Table of Contents............................................................................................................................ 2
Table of Tables ............................................................................................................................... 3
Table of Figures .............................................................................................................................. 3
1.0 Introduction............................................................................................................................... 4
2.0 Risk Management of the FIFA Event ....................................................................................... 5
2.1 Establish the context ............................................................................................................. 6
2.2 Identify Risks........................................................................................................................ 6
2.2.1 Identification and discussion on three key risk areas involving risk management of a
FIFA World Cup project......................................................................................................... 7
3.0 Multi-stage risk management process....................................................................................... 9
4.0 Individual risks evaluation and strategies of Mitigation......................................................... 12
Conclusion .................................................................................................................................... 14
References..................................................................................................................................... 15
4. 3
Table of Tables
Table 1 Probability and impact analysis ....................................................................................... 10
Table 2 Matrix Probability vs. Impact .......................................................................................... 10
Table 3 Security Risk Assessment Matrix.................................................................................... 11
Table 4 Risk Register.................................................................................................................... 12
Table of Figures
Figure 1 Risk management Process as in ISO 31000,2009 ............................................................ 6
Figure 2 Bow tie Diagram............................................................................................................... 7
Figure 3 Multi-stage risk management process .............................................................................. 9
5. 4
1.0 Introduction
The report deals with large-scale project risk control and is, thus, important in project risk
management. Project risk management is the approach to evaluate and respond to any risks
occurring during the life cycle of a project and ensure that the project continues in schedule and
fulfills its purpose (Raftery, 2003). The big challenge for large-scale companies is a product of
constant development in the size and scope of its global presence, coupled with problems
concerning the international political climate and contemporary sports management. The risk may
be specified in conjunction with ISO 31000 as the âeffect of uncertainty on objectivesâ (ISO
31000:2009, 2009). In general, the goal behind risk management is to identify future problems to
organize and develop risk management strategies to mitigate adverse effects on the achievement
of targets as required in a project. At the time it is spent attempting to reach a goal, it does not
consistently produce the desired outcome. If so, it would either yield positive results or harmful
consequences, or both. Reducing risks is also necessary, but to the fullest degree practicable. This
cycle may also be defined as the identification and prioritization of risks followed by the
economical use of resources for tracking, managing, mitigating the consequences of risk-related
incidents, and increasing positive incentives (Liu, et al., 2015).
Risk reduction is also proactive risk control (Mojtahedi & Oo, 2017). Risk assessment is a non-
stop future-oriented mechanism that is an essential part of programs (Mojtahedi & Oo, 2017).
This will fix deficiencies in the arrangement of risk assessment, which may hinder key targets
from being met. A constant process of forecasts for risk evaluations and eliminates risks that have
adverse impacts on operations (Jennings & Lodge, 2012). There are several instances in London
2012 of risk reduction or mitigation programs. In essence, the risks faced by significant companies
and related circumstances (Jennings & Lodge, 2012). The universal recognition of the Olympic
emblem and TV audience will become a common forum for political strife, protest, and jihadist
massacres (Jennings & Lodge, 2012). There is also a range of cautionary tales from the
comprehensive literature analysis of unchecked growth costs associated with megaprojects. While
the London 2012 Building Plan remains on schedule, the complex interdependence and shortage
of contingency ability of Londonâs rail network should be tackled despite elevated costs of places
such as the Aquatics Center (Jennings & Lodge, 2012). The initial London budget of nearly ÂŁ2
6. 5
billion did not contain any political capital investment of almost ÂŁ10 billion in rail networks and
facilities. Politicians and companies believed that such structures should be designed
independently of the Games scene (Jennings & Lodge, 2012).
FIFA World Cup first took place in 1930 when the world football government, FIFA, agreed to
create a worldwide menâs football tournament under FIFA President Jules Rimet, who initiated
this initiative (Kim & Chalip, 2004). The original publication, which was published in 1930, was
questioned as the company accepted only 13 classes in its final competition. Since then, the World
Cup has experienced radical changes and systemic reform for the very last 32-group tournament
accompanied by a two-year qualification period of over 200 teams from all around the world
(Preuss, 2007).
2.0 Risk Management of the FIFA Event
Risk Management is characterized in business as the process for detecting, tracking, and potential
mitigating risks to minimize the negative impact that they have on an organization. Examples of
potential risks include infringements of privacy, financial harm, social challenges, network
failures, and natural disasters (Tarantino & Cernauskas, 2009). The risk assessment approach
consists of a series of iterative steps, each with its subprocesses that aid in the overall decision-
making process, which is sequentially carried out (Tarantino & Cernauskas, 2009).
7. 6
Figure 1 Risk management Process as in ISO 31000,2009
2.1 Establish the context
Establishing the context determines the framework for the method of risk management and sets
the parameters for evaluating the risks (Donzelli & Setola, 2007). The scope should be calculated,
considering the strategic priorities of the company.
2.2 Identify Risks
Identifying the companyâs key risks is a crucial phase towards effective and comprehensive risk
management (Carroll, 2016). Unless the possible risk at this point is not established, additional
research may be avoided, which implies that inadequate exposure will be given to a substance
issue. It is essential to recognize the risks of not exploring an incentive in compliance with ISO
31000 (ISO 31000:2009, 2009). Total detection is necessary since, at this stage, an unknown risk
will not be included in further analysis (ISO 31000:2009, 2009).
Many successful risk identification techniques are available, the most common being:
⢠Brainstorming should be extended to the FIFA World Cup in a SWOT study to determine
the organizationâs strengths/weaknesses and opportunities/risks.
⢠Checklists to collect details from past risk evaluations.
⢠Simple project philosophy analysis and restrictions on success on the riskiest programs.
⢠Interviews with core project members to hear about future FIFA World Cup obstacles.
⢠Study and react successfully to related projects undertaken to determine can risks.
Risks are ambiguities which, whether they occur, would have a harmful (risks) or beneficial
(opportunities) impact on the project objectives. Forms like pitch cutting after the championship
match were stopped by a streaker, although the audience has never learned about a LeBron James
Instagram disruption (Klafke & Lages, 2017). Social networking has proved to be an essential tool
to generate an overview of the operating environment in real-time. Perhaps thatâs just the excellent
sharing of information and collaboration within the organizations themselves â an unquestioned
illustration of professional practice in possibly different sporting activities. Local awareness is
essential for understanding the local environment and deciding the magnitude of what is feasible,
especially where the language is a barrier. Qualified protection operators who speak the local
language are ideal for local social environments, can effectively interact with local security
8. 7
officials, and follow a business attitude are challenging to locate, yet their skills are essential.
Together with the experience of significant activities, reliable local information tends to organize
the parts of the puzzle that requires a critical event security activity. A shortage of funding
compounds much of that. Concerns over Brazilâs telecoms networksâ capacity to deal with the
massive influx of foreign tourists to Tweet submit a picture and video alerts daily indicated that
protection teams had to consider numerous alternative forms of communication to ensure
resilience (Franz, et al., 2018).
Figure 2 Bow tie Diagram
2.2.1 Identification and discussion on three key risk areas involving risk management of a
FIFA World Cup project
Operational risk
A deficit is arising from program, processes, or administrative deficiencies in the operating risk
(Kusunoki & Tanino, 2017). Events that interrupt the flow of the case can be used as an operating
risk. There could be an operational risk in many areas concerning a FIFA World Cup project
(Avsar & Unal, 2014). Such areas are stadium buildings that take a long time because of the event
(one of the most critical events in the world). If the audience is estimated to be over thousands, the
stadium will be enough to meet those criteria (Junge, 2010). This would proceed to the work at the
site. Therefore, the resources in the working teams and personnel from various countries should
be given (Junge, 2010). Risks will occur in airports due to the crowd that will be traveling to the
host country. Crowd management plans should, therefore, be efficient, and activity teams should
Causes
New Technology
Skilled security
force
Complexity of the
event
Impact
Security
Infrastructure
Health
Operational
Financial
Political
Social
FIFA World
Cup
Risks
9. 8
develop external relations with other countries to carry out preventive measures (Junge, 2010).
Land transportation would also be ideal for a large number of people who arrive in the country,
and appropriate transport methods are required in the host city to carry tourists to different
locations (Preuss, 2007). Accommodation can, therefore, be a significant obstacle to activities.
Fans from around the world and many people taking part in World Cup competitions will offer
adequate and sufficient accommodation options. A further systemic risk is international media, as
dealing with global news networks can be a particular challenge (Preuss, 2007).
Security and safety risk
It is one of the most critical aspects to remember in the planning of such a significant case. Many
terrorist problems have been facing significant sports competitions in the past, and appropriate
precautions will be put in place to protect the public and the world at large (Svantesson, 2014). In
recent foreign activities such as World Cups and Football, hosted in Sochi and South Africa, health
issues have also arisen (Preuss, 2007). Brazilâs armed services take decisive measures after taking
lessons from the Fifa Confederations Cup, such as the treatment of demonstrations (Preuss, 2007).
The defense measures should rely extensively on mitigating security risks and adequate
contingencies. To effectively implement security plans, international cooperation will be better
(Preuss, 2007). Security and intelligence networks and international practices around the globe
should be regarded. The host countryâs government will intervene as much as possible in security
initiatives, and it would damage the image of developing countries and the tourist industry if
tourists or participants from other nations did it, which in fact would lead to an economic decrease
(Preuss, 2007). This will be a secure place for visitors from numerous locations using protective
precautions in the event regions.
Health risk
Relevant traditionally organized events such as the RIO Olympics pose significant health risks.
Infection risks include zika, dengue, measles, yellow fever, schistosomiasis, and rabies. With such
practices, people entering other nations may face significant risks (Applebey, 2016). Besides,
some people may not be accustomed to environmental patterns in other countries because of
specific skin conditions. Food may also be a significant safety issue because, in certain countries,
some people do not like foodstuffs or may experience allergy conditions from eating g foodstuffs
from specific countries (Applebey, 2016).
10. 9
In contrast, certain countries in large areas where substantial operations may take place could have
poor air quality. Waterborne pathogens can pose a risk for humans if there are insufficient water
control systems in the developing country (Massad, et al., 2016). The organizing parties will be
prepared to offer public safety, insurance services, appropriate treatment resources, and emergency
service resources that could be needed during the case (Massad, et al., 2016). If there are no
hospitals around the areas of the event, it can lead to a failure in the planning of the venue since
people with different diseases can be present (Massad, et al., 2016). The departments will always
also be able to handle individuals and players with in-house physicians and medical services. When
the exhibition is to be conducted in a country such as Doha, the weather will be concerned with as
the mid-year is the hottest season in a city, and it may impact the well-being of people, actors, and
organizers. This may also impact players in general despite the operation of suitable steps,
including heat walls, soothing mists, and hydration schemes (Massad, et al., 2016).
3.0 Multi-stage risk management process
Figure 3 Multi-stage risk management process
Risk Identification - The first move is to recognize the risks at the location at which the incident
is prone. There are also several things to be taken into account before assessing risks. Such risks
may involve international, economic, scientific, contractual, environmental, safety, and safeguard
risks (Aulia & Qurtubi, 2019). It is essential to recognize as many risks as possible before a project
is undertaken, as a particular risk can play an essential role in the entire project. Thus, a project
organization team can determine the success rate of such an initiative and take all necessary
1. Identify the risk
2. Analyze the risk
3. Evaluate the risk
4. Treat the risk
5. Monitor and review the risk
11. 10
measures to remove the risks or mitigate all risks that help it achieve its objectives by identifying
all the risk areas (Aulia & Qurtubi, 2019).
Analyze the Risk - The second phase in the risk assessment method is the identification of the risk
and prioritization of its practice. This is important to establish the type, existence, and severity of
the risks (Liu, et al., 2015). It will be simpler for project managers to take action to avoid or
mitigate risks by considering such variables (Liu, et al., 2015). This is crucial because such risks
tend to be mixed up with documents and legislation adopting risk reduction approaches such that
it becomes harder to see how much these challenges may be encountered. The risk factors may be
reported with a mixture of chance and degree of certainty for incidence (Liu, et al., 2015). Once
such measures are taken, the Project Director must plan and build plans to decide the first growing
risks should be that, avoided or decreased.
Risk Evaluation - The risk associated with a method is defined, which prioritizes risk with its
magnitude or likelihood (Ergashev, 2008). The usage of these analytical methods is essential to
recognize and take the appropriate steps to resolve risks (Ergashev, 2008). Probability and impact
models of risk factors in this regard should be included. Using this analysis, you can see which
risk is highly likely to occur and has more effect. The team will then determine which risk can be
more concentrated on accomplishing a productive project.
Table 1 Probability and impact analysis
Matrix Probability vs. Impact
Probability
Very High 0.5 0.05 0.1 0.15 0.20 .25
High 0.4 0.04 0.08 0.12 0.16 0.20
Medium 0.3 0.03 0.06 0.09 0.12 0.15
Low 0.2 0.02 0.04 0.06 0.08 0.1
Very Low 0.1 0.01 0.02 0.03 0.04 0.05
0.1 0.2 0.3 0.4 0.5
Very Low Low Medium High V. High
Impact
Table 2 Matrix Probability vs. Impact
Risk Probability Impact
Operational Very High Very High
Security and safety Medium High
Health High High
12. 11
Low Risk Medium Risk High Risk
The following are the Risk Matrix for Security risks. Risk = Likelihood x Consequence
Security risks
Risk Category Likelihood Consequence Overall Risk
Terrorist attack High High High
Political Violence Medium High Medium
Cyber risks Medium High Medium
Robberies Low Medium Medium
Kidnapping Low Low Low
Accidents High Low Medium
Table 3 Security Risk Assessment Matrix
Treat the risk â Risk treatment programs explain how the desired risk control strategy will be
applied. For each risk, the risk action plan should be explicitly defined. After an activity has been
established, the execution roles and timetables will be allocated (Miller, 2011). There are five
standard risk reduction approaches used in programs: to which the most significant risk, which
involves developing another strategy with a larger chance of performance that may involve a
higher cost to implement (Miller, 2011). Users routinely use current and emerging systems
without changing to modern techniques. Third, the probability of risk that may be used to minimize
risk in a project as a fund expenditure. The organizing committee of the FIFA may then purchase
money-rat assurances that the chance of currency exchange-rate volatility. Many strategies are
intended to eliminate the effect of risk by examining the risk implications and taking the
appropriate steps to lower the risk impact and transfer the risk from an initiative to another group
or by recognizing the risks that can be handled because no other approach works to alleviate the
risk.
13. 12
Risk ID Category Description Probability (%) Impact Proximity Risk Owner
1 Security Terrorist attack High High High Security Officer
2 Security Political Violence Medium High Medium Administration team
3 Security Cyber threats Medium High Medium IT Officer
4 Security Robberies Low Medium Medium Security Officer
5 Security Kidnapping Low Low Low Security Officer
6 Security Accidents High Low Medium Security Officer
7 Operational Maintenance Medium Low Medium Maintenance team
8 Operational Development Medium High Medium Engineers
9 Operational Scheduling High High High HR team
10 Operational Accommodation High Medium Medium HR team
11 Operational Transportation Low Low Low Transport Officer
12 Operational Advertising Low Medium Medium Media team
13 Operational Communication Medium High Medium Media team
14 Health Skin Issues Low Medium Medium Health officer
15 Health Food Safety HIgh HIgh High Kitchen team
Table 4 Risk Register
Monitor and review the risk â The outcomes ought to be tracked after the action measures have
been adopted to achieve the desired performance. It is essential to strictly control all risk factors
as all risks can not be eliminated. Since the world is a digital one, all risk factors can be monitored.
Nonetheless, it will require some time to monitor and manage the risks consistently so that the
project advances.
4.0 Individual risks evaluation and strategies of Mitigation
Financial risk â The team will aim to cut expenses when the estimated budget spending is
exceeded. One of the most daunting aspects to do is financial pressure because there would be
periods when you decide to fund the project so the team will have to leave the project or search
for donors or sufficient funds to be found (Brookfield & Boussabaine, 2009). And this is the crucial
factor to remember when you start a project because funding is needed at any corner of a project.
There will also be financial challenges when the team exceeds the expected costs for a particular
project. Finding individuals to provide funds will lead to a break when you complete your work,
or if you donât want to, it may lead to a job loss. As per the findings, they already had five reasons
as Brazil established FIFA and created seven more reasons for meeting these conditions (Kim &
Chalip, 2004). It required massive efforts, so much capital was invested, even as Brazil
experienced an economic crisis. Despite all this, Brazil did not have the anticipated profits from
such a scheme (Kim & Chalip, 2004). More arenas with optimized facilities are also quicker to
load than the spectators who attend the matches. That will save a significant deal of money, which
would be used to improve the economy of a developing nation (Kim & Chalip, 2004).
14. 13
Innovative risk - Works that are unpredictable, irrespective of the form, and scale. Project
characteristics such as climate change, how innovative it is, shortcomings, and associated
characteristics may enhance project risk. Therefore, the project manager must consider a win-win
approach to minimize costs and provide adequate money to fulfill the requirements (Florek, 2008).
The approach to minimizing interruptions plays a crucial role in keeping the project on track.
Innovation in the new world required rapid capital quality (Florek, 2008). Outsourcing is
described as an effective method that gives rise to a very realistic concept while raising the risks
involved with redundant project aspects. This has also been developed to overcome emerging
economic ups and downs. Even if a big case exists, modern technology is included (Florek, 2008).
Owing to the current developments continually emerging into the environment, the application of
innovative technology will help to reach goals in nearly all areas of a project. If the organizers are
unable to follow the new noology software, they can skip a ton of content. First, they must discover
and utilize any possible methods of utilizing match broadcasting strategies to track and monitor
matches for the comfort of citizens worldwide (Florek, 2008).
Health risks â Owing to the construction of new structures, the workers of such businesses and the
people of the area will have so many health risks (Jacob & Spaeter, 2016). In reality, because of
the development of new areas, more vehicles (such as trucks) would be available, and thus air
pollution would be impacted. It would minimize climate, water, noise, and heat emissions pollution
by reducing new structures by maximizing the usage of established stadiums / existing facilities
(Jacob & Spaeter, 2016). This pollution can impact citizens in several respects. Many people can
experience serious injuries or severe diseases, which may also lead to cancer due to exposure to
radiation. However, adopting steps to minimize such pollution will lead to the well-being of
healthier citizens and a more significant social commitment of companies (Jacob & Spaeter, 2016).
Terrorist attacks risk â Several incidents have arisen in recent significant events where suicide has
taken place and has caused people to dread these occurrences (Campbell, 2004). In September
2001, there was an increasing fear that the sites for the Olympic Games would be terrorist targets
(Campbell, 2004). At sporting events around the world, 168 terrorist attacks were carried out
(1972-2004). It is also safest for you to step up the protection of all aspects of the case, from
airports to towns (Campbell, 2004). Besides, the host country would obtain further involvement
from government and special task forces to assist in the project so that tourists would have a sense
15. 14
of security when visiting the area, which will also boost the tourism industry and the potential
visitors to the country, thus enhancing the economy.
Conclusion
Three primary issues concerning risk control were described and addressed during the FIFA World
Cup campaign, demonstrating the significant areas of concern during the planning of this project.
Such risks include financial, life and protection hazards and environmental risks. These risks were
explicitly defined in a proposal for the FIFA World Cup with a focus on managing such risks. This
article identifies a multi-stage risk management model using five key processes, such as risk
recognition, risk analysis, risk assessment, risk control, tracking, and risk assessment. This concept
is a perfect solution to a FIFA World Cup project, as it encompasses certain facets of an event such
as these that are challenging to schedule. Finally, a clear explanation of how to effectively mitigate
these risks was provided for four individual risks, including financial risk, environmental /
innovation risk changes, health risk, and terror risk.
16. 15
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