Risk management is a critical component in China's ability to pull off a successful Olympics, with the country's reputation as a stable and secure business center at stake, according to a risk intelligence expert.

Kevin Liu, head of the Asia Division for Exclusive Analysis in London, which assesses violent risks globally, noted that China's efforts to accommodate protestors during the Olympics could be a positive step toward improving the country's overall business environment.

In addition, he said that visitors to the Olympics will see a renovated city because of massive improvements to Beijing's infrastructure. For example, he noted that airports have been renovated, new railway stations opened up, new roads built and other roads repaired.

David L. Mair, director of client relations for MEDEX Global Group in Baltimore, Md.--who once served as associate director of risk management for the U.S. Olympic Committee, as well as president of the Risk and Insurance Management Society--observed there could also be positive benefits for risk management coming out of the games, including enhancements in security technology.

However, he noted, "clearly the Chinese will not talk about these until after the games are over."

Mr. Mair predicted that there may be advances in areas such as facial recognition software, as well as improvements in personal-scanning technologies--commonly referred to as metal detectors.

"I don't have any direct knowledge of that," Mr. Mair added. "It's wild speculation on my part, based on where the technologies have come from and seem to be going. Certainly the Chinese have an interest in monitoring the movements of certain people."

He noted that "as technology improves in every area, each successive games is able to take advantage of that." He said that security advancements for each Olympics are a "moment in time improvement" that will make their way to general businesses and public entities.

A sound loss control and risk management plan during the hectic Olympic games could reassure investors about the security of doing business there--particularly in Beijing, according to Mr. Liu.

"While investors traditionally have been drawn to other cities, the Olympics will allow them to see the business potential there," he said. "You might see Western companies headquartered in Shanghai and other cities looking to improve access to Beijing's" growing elite and middle class.

Mr. Liu added that the large influx of Olympics attendees also will help accustom the city to outsiders. "The actual integration with local communities has been quite limited up until now," he observed.

Outside of the traditional exposures every major live event faces, risks somewhat unique to the Olympics are terrorism and demonstrations, he explained. Demonstrations could include labor unrest, environmental protests and international human rights issues, he said.

In light of the Chinese government's desire to suppress any potential trouble, Mr. Liu expressed surprise at the government's choice of the location of parks allocated for protestors during the games. Of all the parks that could have been chosen, he said, three within the city of Beijing were designated.

"In a way, it demonstrates the Chinese government's commitment, at least signaling to the rest of the world that it's willing to open up, it's willing to accommodate," he said, adding that other locations easily could have been designated "in a little village somewhere, or in a hamlet 50 miles away. But that certainly would have given a more negative impression of China."

Mr. Liu conceded, too, that his company's sources in China indicate an additional motive for designating certain areas for protestors is so that government can monitor protestors' comings and goings.

Along these lines, the Chinese government is strictly monitoring banners and slogans, he said, "and any other type of inflammatory material being taken into the venues," or "into the whole premises of Olympics Park."

Special Reports /

Olympic Loss Control Success Could Bolster China's Business Potential

Related Stories

Recommended For You