RISK MANAGEMENT

Risk Management

Risk Management

Introduction

The FIFA World Cup, soccer's premier event, is taking place in South Africa from June 11th to July 11th. This is the first time that the event has been held in the African continent and is a huge source of pride to both the host nation and the other 5 other African nations taking part. International teams include the US, England, Australia, France, and Germany. Games will take place in Johannesburg, Pretoria, Durban, Cape Town, Port Elizabeth, Bloemfontein, Polokwane, Nelspruit, and Rustenburg.

NELSPRUIT, South Africa (AP)—A battle over the money to build World Cup infrastructure brought down Nelspruit's municipal government and may have even led to the slaying of a politician. And then there were the crowds of angry children throwing rocks at construction workers, tired of waiting in vain for schools to be built after the community provided cheap land for the football stadium.

If Nelspruit, a sleepy stop on the way to the famous Kruger game park, faced extraordinary problems on the road to the World Cup, the fixes typify what it took to get ready across South Africa: determined politicians, persistent nudging from FIFA, help from experienced foreigners and the wisdom to lower expectations when necessary.

South Africa has experience hosting major world sporting events. However, despite huge efforts by the South African government and local metropolitan authorities, there remain considerable concerns about security and problems with infrastructure. For many African participants, the memory of the attack on the Togo team during this year's Africa Cup of Nations will be of considerable concern.( Worthington, 2009, 162)

Discussion

Nelspruit managed to complete its 46,000-seat stadium last year and will be among the nine cities hosting games when the monthlong football tournament opens on June 11 in Johannesburg.

The main event of the world's most popular sport has come to Africa for the first time, its host a developing country plagued by high crime and unemployment, and a widening gap between rich and poor.

If all goes well, it will put South Africa in line for other high profile events, perhaps even the Olympics. And it will give South African leaders and entrepreneurs, particularly in the tourism sector, new visibility and clout.

“I was not ever a skeptic,” said Gillian Saunders, who has tracked South Africa's preparations as a strategist for Grant Thornton South Africa, which provides risk analysis, financial and other services.( Worthington, 2009: 165)

Saunders said some of the estimated 450,000 foreign fans she expects to flock to South Africa may find themselves stuck in traffic after games in a few cities, and that tents and trailers will have to augment hotel rooms. But such concerns must seem minor to organizers reflecting on the early days, when they were repeatedly asked whether they had plans to hold the World Cup elsewhere if South Africa failed to deliver.

While many visitors to the World Cup will be using tour groups with their own logistical support and security, we are updating our clients about key practical issues that may affect employees, families and travelers visiting ...