Detailed Risk Assessment and Management for the FIFA World Cup Brazil

This report provides a comprehensive analysis of risk management strategies for the FIFA World Cup Brazil project. It identifies three key risk areas: construction, terrorism, and security, emphasizing their criticality for the event's success. The report details the multi-stage risk management process, including risk identification, analysis, evaluation, treatment, and monitoring. A literature review examines various research papers that explore risk management in mega-events, focusing on security, infrastructure, and the impact of terrorism. The report also discusses individual risks and proposes mitigation strategies for each, such as managing construction challenges, addressing terrorism threats through security measures, and ensuring event security through cooperation with international and national intelligence agencies. The report underscores the importance of proactive risk management for the success and positive image of the FIFA World Cup Brazil.

Table of Contents
Three Key risk areas of a FIFA World Cup Brazil Project …………………….……..…1
Multi stage risk management process for FIFA World Cup Brazil. ……… ……………2
Literature Review ………………………………………..……………………………... 3
Four Individual Risks ……………………………………..……………………….……. 7
Mitigation strategies for individual risks. ………………….
…………………………..... 8
References …………………………………………………….
…………………………10
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Risk Management
1. Three Key risk areas of a FIFA World Cup Brazil project.
Risk Management of a mega project specifically FIFA World Cup Brazil is very
important for every host country. Many risk factors associated with every mega project
but some of them required special attention because they are very crucial for the success
of the project. Construction, Terrorism and Security are the main points of current report.
1.1 Construction:
Construction management is always the main concern of the FIFA World Cup Brazil
project because people around the globe waits for the mega event and wants to enjoy the
event. Therefore they travel to the host country from their home country. The host
country has to facilitate these huge numbers of people during the duration of the entire
event. The host country also responsible for the arrangements during every soccer match
to avoid any type of inconvenience. As business executives around the world are
interested to watch the event hence providing them first class services in the stadium are
very crucial. In these services comfort, meal and communication are the most required
services. Business executives always book first class cabins during the soccer matches to
watch soccer matches without any problem. During matches they required fresh and good
meals. The most important requirement is communication because every business
executive is always connected with different people and contacted by different people for
many reasons hence providing them best communication services are the foremost
responsibility of the host country. These all areas are very risky and managing them
during the event is very important Korstanje et all (2014).
1.2 Terrorism:
Terrorism is the second major factor that can cancel or delay the event in the host
country. Thus managing terrorism is also very important. Terrorism can be handling by
managing people behavior, tight precautionary measures and attacks. Managing people
behavior during soccer matches can be possible by imposing strict laws. If any person
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violates law related to behavior then they should be punished with penalty. Through
precautionary measures terrorism can also be controlled. Pre arrangements for visitors
can decrease the chance of terrorism. By managing different groups that can attack to
harm the event will leads to control terrorism. Thus taking strong steps on these points
managers can manage the risk of terrorism during FIFA World Cup Brazil, Korstanje et
all (2014).
1.3 Security:
Threats from different terrorist groups can also disturb the event in the host country. Thus
deploying more persons on security can reduce or eliminate the risk of security. For a
mega project like FIFA World Cup Brazil security risk management is very important
because any violence and terrorist attacks can totally destroy the image of the host
country. Security stakeholders are international and national intelligence agencies. They
can provide useful information regarding the event security because many people around
the globe are travelling to the host country to attend the event thus cooperation from all
countries around the globe can ensure the security of the FIFA World Cup Brazil and this
surety will lead to trust and confidence of the tourist to the host country and as a result
success of the event and image building in the world will achieve. Thus the managers of
the project should properly evaluate it and though corrective measure they can easily
manage security risk Korstanje et all (2014).
2. Multi stage risk management process for FIFA World Cup Brazil.
The following is the multi stage risk management process for FIFA
World Cup Brazil Culp (2002).
2.1) Risk identification.
Many risks are associated with mega events like FIFA World Cup Brazil.
All risks are very important to be controlled but some of them are very
important to be controlled and managed. The following risks always
associated with a mega project Environmental risks, Dependency risks,
Regulatory risks, communicatory risks, Construction risks, Security
risks, Terrorism risks and external risks.
For a mega project like FIFA World Cup Brazil construction risks,
security risks and terrorism risks are very important.
2.2) Risk Analyzing.
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Once relevant risks identified then the second stage is to analyze the
risks. The scope of the risk and association with different factors of the
project is very important. Thus construction risk comes first as
construction risks from different aspects required more attention. On
second number security risk is very important for mega projects like
FIFA World Cup Brazil. On third number terrorism risks is very
important which affect the whole event. Any terrorist activity may
cancel the whole event Culp (2002).
2.3) Evaluation of Risks.
Once different risks identified then every risk categorization on the
bases of its severity is very important. In this case the terrorism risk is
very sever because any terrorist activity may destroy the whole event
and can destroy the image of the host country. Thus totally managing
terrorism risk is very important.
2.4) Treat the risk.
Now after evaluation experts required taking corrective measures
against these risks to control these risks as much as possible. Thus for
construction risks, experts in engineering field, services industry and
telecommunication industry required. For terrorism risk, intelligence
agencies can play their role and for security risk government can
deploy more personnel to control and provide security.
2.5) Monitor and review the risks.
Not all risk can be totally eliminated. Some risks are always present.
Market risks and environmental risks are the two examples of such
risks that always exist. Expert needs to monitor them and on the
occasion if these risks occur they must have proper planning to
manage them. In mega projects like FIFA World Cup Brazil many risk
seems exist but during the event they did not occur due to proper
management and good governance. Thus it is very crucial to manage
every aspect of the event very carefully with deep understanding.
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3. Literature review.
Jenning (2011) explain that a mega event provides the opportunity to
practice risk management. In this paper the author evaluate the
management of security risk for two mega events like the London 2012
Olympic Games and FIFA World Cup Brazil 2006. This paper explains
risk management in two ways. First this paper explains three
theoretical explanations of policy tools or instruments. Second it
express government approaches to conduct direct comparative
analysis of risk management over time of organizational and political
settings. The results explain that both approaches are equally
important for security measures in the risk management process and
very crucial to manage risk of the mega events.
Toohy and Taylor (2011) this paper explain the relationship between
sports events like Federation international Football Association FIFA
World Cup Brazil 2002 and terrorism. This paper explains the terrorism
related factors and their implications on future sports events in
Australia. The author searched for information regarding safety and
responses to security measures for Australia during mega events of
sports. A questionnaire based survey of convenience based sample of
world cup spectators was analyzed and their responses were analyzed
to check how much their motivation level has affected after attack of
terrorist on United States in 9/11, 2001. The results revels that the
terrorist attacks highly effect spectators’ motivation level for a mega
event like FIFA World Cup Brazil, hence high security and safety can
reduce the terrorism and increase spectators’ motivation.
Luskova and Dvorak (2018) they explain the relationship between infrastructure and risk
management. They explain infrastructure is a system. Its destruction effect the whole
event. This research deals with the competence of the state administration to deal with
different types of risk for mega events of sports. The results shows that state
administration can play vital role in the risk management of infrastructure of big sports
events. In addition they express that state administration can provide proper plan for
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infrastructure risk management process and can safely execute that plan. Finally they
conclude that infrastructure risk management can be safely managed by government.
Mitka et all (2017) “this paper explain the association between sports
events like Federation international Football Association FIFA World
Cup Brazil 2002 and terrorism. This paper explains the terrorism
related factors and their implications on future sports events in
Australia. The author searched for information regarding safety and
responses to security measures for Australia during mega events of
sports. A questionnaire based survey of convenience based sample of
world cup spectators was analyzed and their responses were analyzed
to check how much their motivation level has affected after attack of
terrorist on United States in 9/11, 2001. The results revels that the
terrorist attacks highly effect spectators’ motivation level for a mega
event like FIFA World Cup Brazil, hence high security and safety can
reduce the terrorism and increase spectators’ motivation.”
Sullabi et all (2019) the explain the relationship of information security
risk management with respect to mega sports events. Researchers
explain that information security management is very crucial for the
success of any sports event. Without safe delivery of information and
executing data any one can take advantage of the information exist
that can cause failure to the event. Furthermore they explain that
information security risk management creates trust among members
of the team managing the event and as a result good team work
achieved. In addition every mega event like FIFA World Cup Brazil
required proper planning and according to that planning all
arrangements should be done within the specified budget and on time.
Finally they conclude that information security risk management is
highly correlated with the success of every mega event in this era of
information technology.
Moller and Gaffeny (2018) explain the impact of different mega events
like FIFA World Cup Brazil, London Sochi, Rio de Janeiro and Olympic
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Games on cities. The result reveals that there is no negative impact of
different mega events and sports game on cities but a host country
political and economics context influence impact of these events on
cities. Cities in democracies with huge market-led economies are able
to sustain and not more effect by these events and can bitterly use
these events for urban development while cities in less democratic
countries with more state-led economies are mostly affected by these
events. Finally they conclude that none of the cities were able to
eliminate the negative impact of these events on their urban
development.
Cleland (2019) this study explore perception of 1015 sports fans while
attending live mega sports events through an online survey. In survey
questions were based on factors like security, risk and terrorism. These
factors are very important from the risk management perspective.
Some of the respondents were focusing on security while one third of
the survey respondents were focusing on terrorism because according
to their perception fear can also destroy any events success. Finally
the study conclude that the implication of this study as a whole very
important because every factor of the study is considered important
against risk, Hence every factor is related with risk.
Jang Le (2017) “explain that a mega event provides the opportunity to
practice risk management. In this paper the author evaluate the
management of security risk for two mega events like the London 2012
Olympic Games and FIFA World Cup Brazil 2006. This paper explains
risk management in two ways. First this paper explains three
theoretical explanations of policy tools or instruments. Second it
express government approaches to conduct direct comparative
analysis of risk management over time of organizational and political
settings. The results explain that both approaches are equally
important for security measures in the risk management process and
very crucial to manage risk of the mega events.”
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Gong (2017) this paper explain the relationship of operational risk
management and sports events. The study reveals that since Olympic
2008 held in china, after that china managed many sports events.
Every mega event has its operational risks. This study established
performance evaluation index system based on the fishbone diagram
analysis model and explain the assessment in detail. Finally the study
concludes that according to the fishbone analysis model operational
risks are highly correlated with the success of all mega projects.
Clayton et all (2014) they explain the association of terrorism and
tourism for mega events like Brazil FIFA World Cup Brazil 2014. They
gathered the response of many tourists who attend big sports events
in the world. The results show that terrorism has huge impact on the
success of mega sports events like FIFA World Cup Brazil 2014. The
responses of many tourists were negative impact while one fourth was
neutral. Thus the study concludes that terrorism risk management is
highly correlated with the success of any mega sport event like FIFA
World Cup Brazil.
Xiang Lee et all (2016) They explore the relationship of different risks
with FIFA World Cup Brazil and mega sport events like Olympics. They
collected the response of 1900 sport fans through convenience
sampling technique. They have collected responses against
environmental risk, security risk and infrastructure risk. The responses
were analyzed through SPSS. The results reveal that security and
infrastructure risk are highly correlated with the success of mega
sports events like FIFA World Cup Brazil. Furthermore they explain that
environmental risk has less influence on the success of mega events
like FIFA World Cup Brazil. Finally they conclude that all risks
associated with mega events are highly important and managing them
is very important for the success of the project.
JA Lee (2018) this study explore the impact of security risk on FIFA
World Cup Brazil project. The researcher conducted an online survey.
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The results show that security risk management is very important
because without security the tourist may not feel comfortable and the
event may not be successfully carried out. Finally the study concludes
that security risk management is highly correlated with the success of
FIFA World Cup Brazil.
R Nunes (2018) this study explores the association of terrorism and big
events like FIFA World Cup Brazil and Olympic Games. The researcher
conducted interviews of municipality officials and recorded their
responses against terrorist activities during the mega events like FIFA
World Cup Brazil. The respondents most answer in favour of high
security and elimination of terrorism risk by engaging high
municipality. Furthermore the study explain that during mega event
like FIFA World Cup Brazil, business executives from different countries
around the globe are travelling towards the host country if they come
to know that any terrorist activity may occur due to loose security then
for sure they will cancel their visit and will not enjoy the event in the
stadium. Finally the study conclude that terrorism is highly correlated
with big sports events.
4. Four individual risks
There are various types of individual risks but we will discuss only four
types which are mentioned here. These risk are very important
because they effect the life of every individual from different aspects.
4.1) Personnel risk.
All risks that harm any individual directly or indirectly known as
Personnel risk.
These types of risks impact individual personality. These risk may harm
the individual physically or financially Like accident, injury etc.
4.2) Property risk.
All risks those are associated with individual ownership or assets.
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These risks only effect material things of individual. These all material
things are very important for individual life Like building, money,
vehicle etc
4.3) Risk of sickness.
All risks those are associated with individual health.
These risks effect both material and personality of individual. Health is
wealth and different diseases affect human health as a result life
become difficult for a sick person.
4.4) Risk of Unemployment.
All risks those are associated with work or earning to maintain life style
known are unemployment risks.
This type of risks effect life style of individual. Like job loss.
5. Mitigation strategies for individual risks.
There are four types of mitigation strategies for individual risks.
Through these strategies we can control these risks. All strategies may
not applicable to every risk but all risk my be control through any one
of them.
5.1) Avoid Risk.
It means to evaluate the consequences of risk and after evaluation if
the results can bearable than avoid the risk. Which means the risk
cannot harm the individual at high level and level of loss can be bear.
Thus the individual avoid the risk that exist in actual and can harm him
any time but very little. Personal risk can be avoided because it is not
usually occur to every individual. So almost 90 % individuals are not
considering personnel risks. Therefore no one take care for all those
risk that in reality exist and can harm the individual but everyone don’t
know that personal risk will affect him or not.
5.2) Reduce Risk.
It means after evaluation of risk, if the consequences are worst then
try to reduce its effects through corrective measures. Different
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strategies can be avail to reduce the effect of the risk as minimum as
possible. Property risk can be reduce by insuring it and keep it under
strict security. Property includes building, Money, vehicles and many
other tangible and intangible things like patents, goodwill etc. Money
can be deposited in bank to save from robbery. Vehicles can be
registered with trackers to know their location when lost.
5.3) Transfer Risk.
It means after evaluation of risk, if the consequences are not bearable
then the consequences can be transfer to another party or group. Thus
as a result the effect of the risk will be transfer from old party to new
party that can bear the risk. Risk of unemployment can be transfer
from one person to another person. The risk of unemployment can be
transferred by starting new venture through which unemployed person
will become self-employed and will also provide employment to other
people.
5.4) Accept Risk.
It means after evaluation, if the consequences even worse, accepting it
because the impact party may have enough resources to bear the risk
or they may not aware of the results. Risk of sickness we must accept
because none of the human being neither can transfer nor avoid,
hence every human being have to accept it. By accepting risk did not
means that we will not prepare ourselves for the impact. We must
have emergency planes in order to cope with the situation. Thus
proper amount of cash and regular exercise will be good strategy for
accepting the risk.
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