This year's FIFA World Cup soccer tournament opens the doors to a number of risks ranging from terrorism to injury for fans and players alike, according to an analysis released by insurance brokerage firm Aon.
Also touched on in the report are risks for tournament sponsors, uneven insurance coverage for players and terrorism risk outside the stadiums.
The Federation Internationale de Football Association World Cup Germany 2006 is expected to draw hundreds of thousands of fans during the four-week event, beginning June 9. Thirty-two teams from six continents are prepared to compete in 12 stadiums across Germany.
Aon, in its report titled "1st XI Risks World Cup '06," said the tournament can raise a number of risks which promoters, entrepreneurs and participants should take into account and prepare for.
Dennis Mahoney, chairman and chief executive officer of Aon United Kingdom, said in a statement concerning the World Cup: "Risks multiply in scenarios like this where so much is at stake. Intricate planning and preparation, started years in advance, will help to minimize the chances of disruption at the tournament."
He added that businesses need to "think creatively about how they manage employees during the tournament to maintain productivity and morale."
Among some of the risks noted by Aon in its report:
o While some football associations have insurance cover for those individuals playing for their country, many associations can't afford it, leaving an injured player's club to pick up the bill should the worst happen.
o Soft, peripheral targets such as hotels and transport networks may face more risk of terrorist attacks than stadium venues, which will be protected by some of the tightest security measures ever devised.
o Firms with employees who want to attend the World Cup games can avoid reduced productivity and absenteeism from the workplace by arranging special flexible working time, unpaid leave or shift swaps to resolve the issue, Aon advises.
o Businesses supporting the tournament can face a host of risks when sponsoring players, and in a passion-fueled tournament like the World Cup events on and off the field could occur which might lead to embarrassment by association.
o Event cancellation or interruption Aon believes is most likely to be caused by traditional risks like flood, fire or power failure rather than such threats as pandemic influenza or terrorist attack.
Aon said electronic copies of the report are available by contacting Sally Taylor at sally.taylor@aon.co.uk.
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