RISK MANAGEMENT

London Olympics 2012: Risk Management





London Olympics 2012: Risk Management

Introduction

The much awaited event of this year is approaching fast. Annual Olympics is considered as one of the biggest event in the world. Management of such events is not easy, and it takes preparation of years to manage such events successfully. Risk management is a part of the overall event management. However, it can be considered the most important part of event management. According to speakers of Chartered Insurance Institute, effective risk management will play a significant role in ensuring the success of London Olympics 2012 and Paralympics Games. According to Jonathan Clark, One of the biggest challenges is the multiplicity of venues and events for the event insurers and organizers.

Most of the venues scheduled for staging different games will be used to stage sporting event. Therefore, the event management has planned to undertake stress testing at these venues, said Mr. Jonathan (BBC.co.uk 2011, pp.1). He further said that there will be various events, which will be held at different venues across the UK during the upcoming summer Olympics. This scenario adds to the challenge of managing the summer Olympics. Employer's liability is another major risk facing summer Olympics. There will be a large number of employees including volunteers, hired staff, who will help in staging the event. In order to minimize potential liability exposures and risks, the management will need to provide training to these employees.

He further added that organizers need to analyze anticipated risks to athletes and differing attitudes that participants may have towards risks. For instance, if the athlete fell while running in 100 meters sprint, will he get up and continue running or will he sue the designer of the track? Mr. Jonathan emphasized a balanced approach to managing risk. For instance, an overly track may make the contest of sprint boring. One the major stakes at risk are visitors. The event will be attended by millions of people from across the globe, visiting to support their national heroes. One of the main challenges is the multiplicity of languages spoken by visitors, which will cause difficulty in giving safety instructions.

Cultural context will present a challenge for event organizers. It will be important to take care of cultural backgrounds of visitors. According to Mr. Jonathan, organizers can use various scenarios based on different laws and their possibility for litigation. Large scale catering will also create potential liability required for the Olympics, like food poisoning risk.

According to Paul Maynard, Chief Placement Officer for Willis U.K. & Ireland Ltd, the likelihood of cancelation or postponement of the event is low despite the number of risks associated with the organization of such an event. He further said, “There will be a huge drive to make sure the Olympics goes ahead” (BBC.co.uk 2011, pp.1).

He quoted the examples of Olympic Games in Atlanta in 1996 and Munich in 1972, which persisted in spite of terrorist threats. According to Steve Atkins, chief executive of Pool Reinsurance ...