For us mere armchair spectators sat at home watching the World Cup from South Africa, it is difficult to even think about the consequences of the what might happen if the World Cup had to be cancelled.
From TV screens going blank during the game, to volcanic ash disrupting travel, terrorist attacks and freak weather conditions, the risk profession plays a key role when it comes to big tournaments, even though they have provided over £6 billion worth of coverage for the month-long event.
Munich Re estimates the broadcasting rights earned FIFA 2.2 billion Euros for the 2002 and 2006 World Cups. If the event is cancelled, FIFA faces substantial claims by companies who have licensed the media coverage.
Swiss Re Group estimate the cancellation of the event is one of the biggest risks insured, and the Olympics and the World Cup are two of the largest events insured for event cancellation coverage. FIFA alone has purchased $650 million in insurance for total cancellation of the World Cup 2010.
Other risks associated with the World Cup are household damage, increased thefts, player injury and even trauma suffered by fans whose teams have underperformed in the games. Surely something that England fans will not have to endure!
This interesting video gives some background to the huge risks and financial costs that must be considered when taking on the responsibility of staging a global event such as the World Cup 2010.
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