A Detailed Case Study: Risk Management of the FIFA World Cup in Brazil

This case study examines the risk management strategies employed during the 2014 FIFA World Cup in Brazil. It highlights the various challenges faced, including security concerns, infrastructure limitations, and social unrest. The case study emphasizes the importance of early preparation, local expertise, and realistic goal-setting for companies involved in such large-scale events. It also discusses the significance of information sharing and collaboration among organizations. The analysis explores how companies navigated these complexities to ensure a successful tournament, despite potential disruptions. It concludes by underscoring the critical role of effective risk management in mitigating potential crises and achieving desired outcomes in major sporting events.

Case Study – Risk Management of the FIFA World Cup
Big Events, Big Risks: Lessons From Brazil's World Cup
By Jacqueline Day
BRASÍLIA – For a month this past summer, billions of fans around the world stayed
glued to televisions broadcasting the FIFA World Cup from Brazil. Millions more
descended on Brazil to watch the games in person. They came despite the various
warnings about Brazil’s readiness to host and fears of widespread, violent protests.
Yet, as it should be, the tournament will mostly be remembered for the drama that
played out on the pitch: from the Brazilian team’s epic collapse against Germany and
the controversy that erupted when Uruguay’s Luis Suarez (some would say
allegedly) bit an Italian opponent, to the emergence of Colombian star James
Rodriguez.
That the tournament will be remembered first and foremost for the soccer was no
small feat and, frankly, a massive surprise. Thousands of corporate VIPs, celebrities
and world leaders descending upon a country known for its security, logistics and
infrastructure challenges was worrisome enough. Such a backdrop, combined with
the disruptive social unrest that flared unexpectedly in 2013, could have easily
shifted the storyline away from the sporting competition itself. That it did not is a
testament to the hard work and careful preparation of the legions of public and
private sector workers, as well as to the Brazilian people’s devotion to “the beautiful
game.”
The Brazilian security forces deserve plenty of credit. They took active measures to
address lessons learned from the 2013 FIFA Confederations Cup, effectively
managing and containing the smaller-scale protests that did occur, and critically,
avoiding the heavy-handed tactics that only aggravated matters in 2013. They were
helped by two additional factors. First, many Brazilians who had previously engaged
in legitimate and peaceful protest activity during the Confederations Cup were
alienated by the violent tactics of anarchist groups, the so-called Black Blocs, with
whom they did not want to be associated. Second, in keeping with custom, most
Brazilians cared more about watching the matches than taking to the streets. Even
Brazil’s crushing loss to Germany—an event that caused security directors to
collectively hold their breath—failed to galvanize the masses to take back to the
streets.
But for the scores of companies with a role in the World Cup trying to manage the
uncertainty and sheer complexity of the event, a successful tournament required
significant resources and an entirely different dimension of planning driven by worst-
case assumptions.

This is nothing new—similar challenges exist for every major sporting event—but
every country is different, bringing with it unique challenges. Security concerns also
preceded the 2010 World Cup in South Africa and the Winter Olympics in Sochi
earlier this year, but the basic infrastructure and seeming lack of adequate
preparation in Brazil intensified concerns of catastrophic failure.
Lack of infrastructure complicates everything. Concerns over the capacity of Brazil’s
telecommunications networks to handle the massive influx of international visitors
sending out regular updates with photos and videos across the Twitter sphere meant
that companies’ security teams needed to find multiple other ways of communicating
to ensure resilience. Moving people around the country was also quite difficult. Brazil
declined to enlist foreign air carriers in adding capacity for domestic flights, so flights
were expensive and booked up quickly. Yet air travel was the only truly viable means
of moving throughout the country, given the poor and dangerous conditions of
Brazil’s roads and the complete absence of a rail network. Buses were a good option
for budget travellers, but eight-hour bus rides don’t exactly fly with a bank executive
or global music superstar – no matter who is playing that day. Armoured and
executive-class vehicles were completely booked up nearly a full year in advance,
with providers demanding 100% payment in advance in order to secure the contract.
Business-class hotel accommodations were also in extremely short supply, and
organizations that did not book well in advance found themselves out of luck, often
without a safe place to house their people.
Early preparation and planning can overcome many of these obstacles, but when it
gets down to brass tacks, the recipe for success requires major event and local
LOCM +0% expertise. Major event expertise ensures a thorough appreciation of the
uniqueness of the operating space along with the core requirements and
expectations of the business, and above all, the art of managing complexity. Local
expertise is essential for understanding local context and defining the realm of the
possible – particularly when language is a barrier. Finding qualified security
operators who speak the local language, are attuned to local social dynamics, can
liaise effectively with local security agencies and embrace a corporate mindset are
hard to come by, but their capabilities are indispensable. Together with major event
expertise, reliable local expertise helps align the pieces of the jigsaw-puzzle that
comprises a major event security operation.
Ensuring access to timely, accurate information during the World Cup in Brazil was
one of the biggest challenges companies had to overcome. Media broadcasts
deliberately blacked out coverage of certain events, such as a stadium-wide
profanity-laced chant taunting President Dilma Rousseff at the opening match in Sao
Paulo. They cut away from the pitch when a streaker interrupted the final match, and
the world only learned of the disruption thanks to LeBron James’ Instagram feed.
Indeed, social media proved an invaluable source for generating a real-time picture
of the operational environment. But so did the unprecedented level of information-
sharing and collaboration among the companies themselves –now an undisputed
best practice model for future major sporting events.
Even with advance planning, the right experts and a robust intelligence network,
there are limits to what an organization can achieve in and around such a massive
sporting event. For companies participating in the World Cup, the biggest factor for

success was setting realistic goals. Companies that tried to do too much too late
found themselves hamstrung. Those who started with a clear-eyed vision of what
was feasible were better able to get their arms around all the moving parts – and had
a great time… unless they were pulling for the home team to hoist the trophy.
Jacqueline Day is managing director for Crisis and Security Consulting at Control
Risks, the global risk consultancy.
Day, J. (2014) Big Events, Big Risks: Lessons from Brazil’s World Cup Available at
https://www.forbes.com/sites/riskmap/2014/09/29/big-events-big-risks-lessons-from-
brazils-world-cup/#41bdc4b51120 (Accessed 05/09/2017)