Enterprise Risk Management and Mitigation Strategies

The assignment discusses the importance of enterprise risk management in a business setting. It covers risk mitigation strategies, best practices, and modeling techniques to help organizations understand and overcome risks. The provided references are from academic papers, books, and online resources that support the discussion on enterprise risk management.

RISK
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION..............................................................................................................................10
References......................................................................................................................................11

INTRODUCTION
In an organisation, risk management is one of the essential aspects by which risk
associated with activities and functions of business can effectively be measured and minimised.
It refers to the system and practices that are applied by company to integrate all business
activities so that associated risk can be reduced. In the company, there are different kinds of risks
which are needed to be identified by company so as it can easily decrease. The current report
provides the detailed knowledge and understanding about the key risk are involved risk
management of an FIFA world cup project. In addition to this, various potential mitigation
strategies have also been addressed in this report.
MAIN BODY
The function of risk management plays a crucial role within business enterprise by which
various kinds of business risks can be minimised and firm can be able to address its determined
objectives in an effective and efficient manner (Sutton, 2006). It is a great responsibility of
higher authority to use several effective methods and strategies to identify risk and hazard as
well as implement same in business for overcome that risk. In simple words, it can be said that
risk management refers to the process of identifying, assessing and controlling threats to an
organisation's capital and earnings.
As per the given case scenario of FIFA world cup from Brazil, a million of fans around
the world stayed glued to television broadcasting. The tournament will mostly be remembered
for the drama that played out on the pitch.
As per the case study, it has been analysed that lack of infrastructure is the major risk
associated with FIFA world cup in the Brazil. In order to organise a successful tournament and
event in the Brazil, government required sufficient infrastructure and equipment. In addition to
this, proper planning is another risk area at which government should consider in effective
manner. With the help of proper planning and scheduling, event can be organised in an effective
and efficient manner. Another risk is the time in FIFA world club in the Brazil as due to
insufficient time, accurate information during the world cup is the biggest challenge. For
organise tournament in more systematic and effective manner, it is very important for Brazil
government to focus on the several areas where risks and challenges are included.

Following are risk management strategies to overcome the risk areas associated with
FIFA World cup project:
Lack of infrastructure- This is one of the major risks found in the FIFA world cup in the
Brazil. Infrastructure is an important aspect in order to organise the event in an effective manner.
Due to lack of infrastructure, several activities can negatively get influenced (Segal, 2011). As
per the research, it has been found that in Brazil, government has not focused on the
infrastructure in the tournament. This is the major risk which can negatively affect tournament in
the Brazil. If there is no proper infrastructure, then it will affect all activities and results of the
event.
Insufficient time- In order to organise a systematic event in the successful manner, time
is one of the major sources that help to event planner in effective manner. Due to lack of
sufficient time, it is complicated to conduct all activities in an organised manner. As per the
research, it has been found that in the case scenario of FIFA club ensuring access to timely,
accurate information during the world cup in Brazil was one of the biggest challenge companies
had to overcome.
Lack of planning and preparation- This is another one of the major risks associated with
the FIFA world club 2013 by which event can negatively influenced. Event organiser should
develop a systematic planning and scheduling so that each and every activity can effectively be
organised (Rabie and Alsusa, 2015). With the help of proper planning and scheduling, event
organiser can easily identify the future needs and challenges regarding event. It also assists in
overcoming challenges which may be faced in the future.
As per the above discussion, it has been analysed that there are several kinds of risks
associated in FIFA world cup project. In order to overcome these risks, event organiser can focus
on the systematic risk management procedure which is discussed as below-
Risk reporting- In this phase, at first, revealing is finished by determined hazard. In any
case, it is the continuous procedure where particular office disperses the data identified with
hazard. For instance, risk can be identified with over creation and less monetary assets for
organisation At this stage, top management and event organizer of the FIFA world club focuses
on the reporting of risks associated with event activities and functions. In this, they are supposed
to develop a systematic report in which each and every risk is included in a systematic manner.

By the help of this strategy, organizer can easily acknowledge idea and knowledge about risk and
develop effective solution to overcome these risks.
Decision- Decision is taken with incorporation of creation office and every individual
administrator alongside administration. Here, potential arrangement is taken out based upon the
discussion regarding the reason for the issue. It can be identified with poor innovative work
exercises which prompt loss of business (Pickett, 2006.). This is a significant stage on which
event organizer of FIFA world club focuses on taking final decision regarding strategy. Once the
risk report is effectively assessed by organizer, then in the second stage, they have to take the
decision regarding solution of risk. In this stage, event organizer of FIFA club focuses on
strategies and practices overcoming the risks and issues associated with event.
Risk treatment-This is another important stage under which chance is dealt with by
company based on certain control or standards which are set up by group. This encourages to
propose fitting arrangement and empower every related part to take mind that such sort of hazard
are limited as it were. Once the strategies and practices of risk handling is selected by the event
organizer then in the next stage, they are supposed to implement that strategies. As per the case,
it has been analyzed that in the Brazil FIFA world club event, major three kinds of risks have
been identified that is improper infrastructure, lack of time as well as improper planning and
scheduling (Papilaya and Vinck, 2015). These are the major risks associated with FIFA world
club. In order to overcome these risks, event organizer has focus on strategies that are develop
impressive time schedule and planning, finance management, market research, effective
information.
Residual risk reporting- This is another phase under which lingering hazard report is
readied and furthermore given the same to watch over assessment of business and guaranteeing
its moral lead in the commercial center. This increases the chances of compelling administration
and business activities as individual gathering give new rules and control to overcome hazard
and risks This stage helps to event organizer by provide information regarding regulation,
legislation and guidelines regarding risk. FIFA clubbed organizer can acknowledge the idea
about regulations and guidelines regarding the event through which various uncertain risks can
easily be minimized.
Observing- At this stage, constant checking or hazard is finished with the assistance of
formal and inner review (Olson and Wu, 2010). It helps to keep report identified with all

business exercises and likewise, take restorative measure for arrangement of hazard identified
with nature of administrations or over creation related viewpoints. In any case, report of review
deliver result that where FIFA world club need to focus for its better creation or activity.
Monitoring and observing are essential methods in the risk management handling.
Modification- It is the last advance of hazard administration under which adjustment is
done based on survey of review report and other related perspective. This helps organization to
adequately way all task exercises and guarantee ideal usage of restricted assets.
As per the above discussion, it has been analysed that there are several stages along with
risk management process through which company can easily identify risk and obtain solution for
that risk.
 Investigation- It is the initial step of hazard evaluation strategy in which FIFA world
club can break down the interior condition in light of set targets. It should be possible
with the assistance of inside review and taking separate from various divisions. This
encourages to comprehend hazard pervasiveness arrange and likewise take fitting
procedure.
 Identification- It is the subsequent stage of hazard evaluation process in which potential
hazards are identified with achievement of occasion and budgetary administration are
distinguished and afterward particular territories are thought about for applying those
procedures. It helps organization to chip away at similar zones for adequacy of firm.
 Description-This is the third phase of hazard evaluation strategy where group of master
tend to endless supply of hazard zones. It helps partnership to apply suitable measures for
its cure and keeping up higher rate of return of FIFA world club (Mehta, 2010).
 Estimation of control measures-At this stage, control measures are evaluated with
nearness of appropriate staff and representatives. In this, monetary hazards can be
decreased by getting practical wellsprings of back. In the meantime, fund office can be
given over significantly more obligations to make proper move. Essentially, control
measure should likewise be possible with the assistance of combination of all divisions
and centers group working upon hazard administration. (Marchetti, 2011.)
 Evaluation and review-This is the last stage chance appraisal process wherein
assessment is done based on result extricated from portrayal. It is compelling to partners

to get detailed data identified with chance assessment methodology. This encourages
organization to deal with all task exercises in a solid way.
As per the discussion, it has been analysed that there is a systematic procedure and
process of risk management by which FIFA world club can easily analyse risks associated with
various activities and functions of the FIFA world club (Lloyd, 2001). With the help of risk
management process, event organiser can easily assess and overcome risks associated with
activities.
As per the discussion it has been analysed that there is a systematic procedure and process of risk
management by which FIFA world club can easily assess and analyse risk associated in various
activities and function of the FIFA world club. With help of risk management process, event
organiser can easily assess and overcome risk associated with activities (Hillson, 2014.). By
having an upgraded focus on the danger organization approaches the issue can be settled in
needed way. It is vital for business firm to ensure about peril organization process. It suggests the
ID of danger is critical which helps in reasonable change. Overview of relative danger is
moreover worthwhile to consider which help with meeting objectives.
Following are some risk management mitigation strategy that can help to FIFA world club for
overcome and associated risk. Risk mitigation is a very important aspect in the organisation and
any event by which risk can easily identify and assess by the organiser. It is a systematic
procedure that help in reduce adverse effects. There are major four kinds of risk mitigation
strategies which help to event organiser in the IFA world club. These mitigation strategies are
discussed below-
 Risk avoidance- Risk affirmation does not diminish any effects in any case it is up 'til
now contemplated a method. This technique is a run of the mill decision when the cost of
other risk organization choices, for instance, avoidance or limitation may surpass the cost
of the danger itself (Berkowitz, 2001). An association that wouldn't like to spend a lot of
money on avoiding perils that don't have a high credibility of happening will use the risk
affirmation method. This is one of the most significant risk mitigation strategy in the
FIFA world club by which event organiser can easily overcome the risk associated with
business activities and functions. In this aspect, event organisation should conduct the
event in such manner so as risk can automatically avoid and remove. Avoidance and
adjustment in the program can assists in overcome chances of risk in the activities of

FIFA world club. This adjustment could be accommodated by a change in funding,
schedule and technical requirement.
 Risk control- Risk evading is the opposite of peril affirmation. The action avoids any
introduction to the peril whatsoever. Peril avoiding is by and large the most expensive of
all hazard alleviation decisions. Risk evading is the transfer and avoidance of some peril
which tries to reconfigure the wander with the ultimate objective that the danger being
alluded to vanish or is diminished to a satisfactory regard. It is a locale in which chance
assessment is required (Banks, 2013) The possibility of the course of action may
construct, specific, money related, political, or whatever else watches out for the
explanation behind the danger. Regardless, mind should be taken with the objective that
keeping up a vital separation from one known danger does not fast putting it all out there
of significantly more unmistakable result. Peril avoidance is in all probability
underutilized as a system for chance control, however chance trade is over utilized
proprietors will likely consider first how they can pass the risk to someone else rather
than how they can modify the dare to keep up a vital separation from the danger
(Bainbridge, 2009). Risk controlling is another one of the most significant strategy that
help to event organiser of Fifa world club In this strategy, event organiser should
implement action to minimise the impact or likehood of the risk. In this aspect, Organiser
have to focus on the strategies and method through which risk can automatically control
in effective and efficient manner. In this strategy of risk controlling, management of
FIFA world club have to focus on the strategies to improve infrastructure and equipment
condition develop systematic planning and scheduling, conduct proper time management
etc. With help of these strategies, FIFA world club can easily overcome the chances of
risk in the activities and functions.
 Risk acceptance- Risk acceptance is the most broadly perceived peril organization system
used by associations. This technique limits an association's presentation by making some
move. It is an approach using a pinch of peril affirmation close by a dash of risk
avoidance or a typical of both (Awadallah, Milanovic and Jarman, 2015). An instance of
peril imperative would be an association enduring that a plate drive may miss the mark
and keeping up a key separation from a broad extend of disillusionment by having
fortifications. Risk acceptance is another one of the significant aspect in the organisation

by which by event organiser can easily overcome the chances of risk and overcome it in
effective and efficient manner. FIFA world club event organiser should accept the risk
which incurred in the business activities and function by which they can easily overcome
its negative impact upon activities.
 Risk transference-Risk transference is the incorporation of giving threat off to a prepared
pariah. For example, different associations outsource certain assignments, for instance,
customer advantage, back organizations, et cetera (Hampton, 2009). This can be
favourable for an association if a traded danger is certainly not an inside competency of
that association. It can moreover be used so an association can focus more on their
middle abilities Risk transfer can be entirely appropriate when both sides fully understand
the risks compared to the rewards. This strategy may be applied to contractors, sureties,
or insurance firms. The party that assumes the risk does so because it has knowledge,
skills, or other attributes that will reduce the risk (Fraser and Simkins, 2010). It is then
equitable and economically efficient to transfer the risks, as each party believes itself to
be better off after the exchange than before and the net project value is increased by the
risk transfer. Risk transformation is another one of the significant strategy in the risk
management and mitigation by which Fifa world club organiser can easily transfer risk
from one to another. In this aspect, management can reassign organisational
accountability, responsibility and authority to another stakeholder.
Other strategies to minimise risk in the FIFA world Club event
 Proper audit- Regular and proper audit is another one of the strategy through which risk
can automatically overcome. In this strategy, event organiser of FIFA world club should
conduct audit and market research so as they can easily identify and forecast future
challenges and risk associated with it (Duckert, 2010).
 Contingency plan- A systematic planing and scheduling is another one of the important
strategy that help to event organiser of FIFA world club. In this aspect should use
systematic planning and time scheduling so as they can easily reduce the impact of such
event.
 Error handling- Event organiser of FIFA world club should develop effective designing
system through which error are easily handled in a such way by which error can
automatically minimise (Connelly, 2014).

 Infrastructure- Effective infrastructure is very important for the effective management of
risk in the Fifa world club. In this aspect, event organiser should use high quality of
infrastructure and equipment so as event activities and program can organise in more
effective and efficient manner.
CONCLUSION
From this entire report it has been concluded that risk management is a systematic
method and process for overcome risk and hazard within the activities and functions. In the
FIFA world club in the Brazil, there are various kinds of risk have been identified such as lack of
infrastructure, lack of sufficient time, improper planning etc. It has bee also concluded that by
help of risk mitigation strategy, FIFA world club can easily understand and overcome these risks.

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Online
Enterprise Risk Management . 2015. [Online]. Available through:
<http://www.kpmg.com/in/en/services/advisory/risk-compliance/grcs/pages/erm.aspx>.