Risk

Risk Management Plan

Executive summary 

The aim of this paper is to develop risk management plan for Olympic in Australia. Additionally, this plan is identified various risk such as security, financial, natural calamity, technology risk etc. these risk impact the Olympic events in a negative manner. So to address these issues, various solutions are also mentioned in the risk management plan. Likewise, budget planning, install ERP system or follow of social sites etc. From this manner, Olympic organizers implemented their every game at right time with successful way.

Introduction

This paper provides the risk management plan for Olympic in Australia. In regards to this, there is various risk is identified which could occur in the implementation of Olympic. At the same time, the plan is prepared in order to reduce the impact of risk (Boyle & Haggerty, 2012). In short, the study gives the brief explanation related to risk management plan for mitigating the negative effects of risk.

Background

Risk management Plan is considered as an important document that is undertaken by the manager to foreseen all risks, estimate impacts of risk and determine the response to issues. The purpose of using the risk management plan is to determine the factors which could influence adversely so to handle such risks by planning certain activities (Bennett & Haggerty, 2014). Thus, it can be stated that the risk management plan is the current necessity for the industries to include whether it is manufacturing or sports games organizers.

 Risk management Plan involving Olympics

Risk management plan is the essential requirement for the Olympics as in these international games, there is certain risk involved such as cyber attack, frauds and illegal betting etc. Other than that, risk related to finances, operations also occurs in the sports events, especially under Olympics games.

So, organizer undertakes the risk management plan to address this foreseen risk in a systematic way. Besides that, Risk management Plan is also involved in Olympic with the reason to find out the best appropriate solution for mitigating the risk effects over the games operation (Schwalbe, 2015).

At the same time, such practices also contribute to decision making towards conducting activities under the Olympic Games. Therefore, it is found that risk management plan is the vital part for Olympic organizers to conduct the events successfully without facing any type of risk in its implementations.

Identify risks associated with Olympics context

The risk is considered as an uncertainty which could happen with every activity and events. Similarly, the risk could also occur with the Olympic event in Australia. The major risk that could arise on the implementation of the event would be the security, financial, operational issues etc.

In case of security risk, it includes various issues such as mega-events (Olympic) always gets the target from threats of terrorism, cyber attacks, fraud, illegal betting etc. Similarly, at the venue of the event, there is a high possibility of natural risk & disasters in the form of athletes injured, transport accidents etc.

Moreover, Olympics games also involve risk related to financial, operational & technology issues. Financial risk is quite a common risk for the Olympic Games as there is a high possibility of capital risk in such events (Schroeder et al., 2013). While operations risk arises in the form of delay in execution of events, limited resources availability is another limitation on the operational risk in Olympic Games. Technology risk includes the failure to bring innovation or adopt the updated version of the technology.

Risk analysis of identified risks

Risk matrix will prepare to analysis the impact of identified risk on the Olympic event in Australia:-

Table 1: Risk Parameters

LEVEL COLOR PRESENTATION LIKELIHOOD OF OCCURRENCE DESCRIPTOR RELATIVE IMPACT
1 Very low Rare Insignificant
2 Low Unlikely Minor
3 Moderate Possible Moderate
4 High Likely Major
5 Very high Certain Catastrophic

Table 2: Risk Matrix

RISKS LIKELIHOOD OF OCCURRENCE DESCRIPTOR RELATIVE IMPACT
Security risk i.e. cyber attack, frauds and illegal betting Moderate Possible Moderate
Operation Risk High Likely Major
Technology failure or old technology Moderate

 

Possible

 

Moderate

 

Financial Risk Very High Certain Catastrophic
Natural calamities Low Unlikely Minor

From the above risk matrix, it can be identified that in Olympic Games, various risks can be possible such as security, economic, natural calamities & technology risk (Webb et al., 2014). Among these risks, financial risk would influence significantly because financial risk has high likelihood of occurrences that also includes the catastrophic impact on Olympic operations.

Risk responses plan for identified risks

Risk response plan will present in order to mitigate risks which could occur in the Olympic. It is mention below:-

Prioritized Risks Solutions Timeline Responsibility
Financial risk Proper financial planning and Budgeting requirement  

5 to 8 months

Finance manager
Operation Risk Install right system such as ERP for resources planning  

3-6 months

HR & IT Team
Technology risk  Include the digital sites and social networking sites for promoting the Olympic event  

6 months

IT Department

Thus, in this manner, the risk will be mitigated and systematically implement the Australia Olympic Games.

Plan for monitoring and controlling identified risks

For monitoring the risk management plan, the Olympic manager should record the actual results and need to report internally & externally. This allows the manager to compare the standards result with the actual result then they easily identified the deviations and accordingly develop the plan.

At the same time, identified actual results will also consider to be effective in regards to review and bring improvement in risk management framework (Hanstad, 2012). Additionally, the efficiency of events should be monitored for determining the deviations in its execution. Based on that, the changes need to be incorporated.

Justification of your proposed risk management Plan

Risk management plan will prove to be effective for the successful execution of Olympic Games in Australia. This plan helps the organizers to identify the risks which would occur at the time of execution (Abul-Haggag & Barakat, 2013). At the same time, it also guides the manager in regards to how to mitigate the effect of risk and how to handle it. Thus, risk management plan contributes helpful for efficient decision making.

Conclusion

From the above discussion, it is concluded that risk management plan provides support to Olympic managers to determine the risks such as finances risk, operations & security etc. furthermore, it also presents the solution of addressing these risk. Therefore, it gives a better understanding to the project manager to perform activities systematically.

References

Abul-Haggag, O. Y., & Barakat, W. (2013) Application of fuzzy logic for risk assessment using risk matrix. International Journal of Emerging Technology and Advanced Engineering, 3(1), pp. 49-54.

Bennett, C. J., & Haggerty, K. (Eds.). (2014) Security games: surveillance and control at mega-events. USA: Routledge.

Boyle, P., & Haggerty, K. D. (2012) Planning for the worst: Risk, uncertainty and the Olympic Games. The British journal of sociology, 63(2), pp. 241-259.

Hanstad, D. V. (2012) Risk management in major sporting events: A participating national Olympic team’s perspective. Event Management, 16(3), pp. 189-201.

Schroeder, A., Pennington-Gray, L., Kaplanidou, K., & Zhan, F. (2013) Destination risk perceptions among US residents for London as the host city of the 2012 Summer Olympic Games. Tourism Management, 38, pp. 107-119.

Schwalbe, K. (2015) Information technology project management. USA: Cengage Learning.

Webb, J., Ahmad, A., Maynard, S. B., & Shanks, G. (2014) A situation awareness model for information security risk management. Computers & security, 44, pp. 1-15.

 

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