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Introduction
The Federation Internationale de Football Association (FIFA) is an association founded in 1904 with a goal dedicated to the constant improvement of football. Based in Zurich Switzerland, FIFA is governed by Swiss law. The organisational structure of FIFA is made up of a Legislative Body (Congress), an Executive Body (Executive Committee), an Administrative Secretariat (Administrative Body) and Committees that assist the Executive Committee. FIFA employs about 310 people from over 35 nations and has been served by 8 presidents since its conception in 1904 (FIFA.com)
Overview of the FIFA World Cup
The FIFA World Cup is a men’s football sporting event of global proportion held every four years and organised by FIFA to unite and build a better future for the world through the power and popularity of football; which is an integrated part of society. The inaugural FIFA World Cup was held by Uruguay in 1930 and the tournament has been on for about eight decades with the 19th World Cup held in 2010 and hosted by South Africa. (FIFA.com)
Referring to Jennings (2009), the FIFA World Cup is considered to be a mega event as it is suggested to involve extensive preparation and planning, exceptional scale and scope and long term resource commitment, particularly with regards to construction of infrastructure, budgetary planning and operations. This analysis therefore categorises the FIFA World Cup as a high risk mega event as it presents a site for operational, technological, social and political failures, some of which are caused by internal factors while others arise from the external environment.

Situation Analysis
FIFA has emerged unscathed from the turbulence in the financial markets and the global economic recession. It is even emerges stronger from this crisis. Compared to the previous period, the turnover and profit continues to grow in 2010 due to increased revenue from marketing rights particularly in the areas television.
Findings from the financial report of FIFA suggest that the worlds football governing body was able to start 2010 with a positive result. The balance sheet of FIFA for 2010, indicated revenues of USD 1.291 billion and expenditure of USD 1.089 billion, and a surplus of USD 292 million.
The financial position of FIFA remains strong and in a good position. Compared to previous years, revenue continued to grow in 2010. At the same time, expenditures (charges) have increased due to a higher overall budget for the cycle of World Cup 2007-2010. FIFA has reached for the FIFA World Cup total proceeds of USD 3 655 million which excludes ticket sales. To oppose this total expenses of USD 1 298 million. Total revenue is positive and amounts to USD 526 million.
The most common use of the term 'gearing' is to describe the level of a company's net debt which is net of cash or cash equivalents, compared with its equity capital. It is usually expressed as a percentage. The gearing must be as small as possible to say that the company has little debt.Debt levels higher than 80% means that the company is already highly indebted and therefore dependent.
. As we can see in the table 1 the gearing of FIFA is very low and reduced, we can explain that because this is an Association and not a Business.
The forecasting approach presented in this section is the Mayer method It forecasts the Balance Turnover, Profit, liquidity and gearing by assuming most of the accounts to maintain a fixed proportion. | Historical Trend | Actual Trend | Future Trends | | 2 008 | | 2 009 | | 2 010 | % | 2 011 | % | 2 012 | % | 2 013 | % | 2 014 | Turnover | 957 | 9.63 | 1059 | 17.97 | 1291 | 10.11 | 1436.33 | 12.38 | 1639.44 | 9.12 | 1804.04 | 9.54 | 1994.31 | Profit | 184 | 6.12 | 196 | 2.97 | 202 | 3.98 | 210.39 | 2.93 | 216.76 | 3.33 | 224.24 | 2.88 | 230.89 | Liquidity | 706 | 51.21 | 1447 | 10.12 | 1610 | 23.5 | 2104.65 | 11.21 | 2370.47 | 14.79 | 2781.79 | 10.09 | 3094.16 | Gearing | 4.76 | -266 | 1.3 | 70.18 | 4.36 | -119 | 1.99 | 15.31 | 2.35 | -235.71 | 0.70 | -150 | 0.28 |

Risks Facing The Company
Controlling the appetite for risk is of the most importance to every organisation. Too much risk can result in critical failure of the business and too little risk can reduce competitiveness. Risk is the effect of uncertainty on objectives which have both positive and negative effects. According to the ISO/IEC Guide 73, risks are the combination of the probability of an event and its consequences which have the potential for benefits (upside) if managed effectively, or the threat of success (downside) as a result of poor assessment and management. Risks are a central part of any organisation’s strategic management; it is suggested that the greater the risk involved, the higher the return. However, this can only be managed by effective identification and treatment of all perceivable risks. Risk management is a process that is supported by a set of principles and structures that are appropriate to the organisation and its external environment and requires a balance between the level of the risk in relation to the size, nature and complexity of the organisation.
The Debate for Goal Line Technology and Referee Assistance: The case of Frank Lampard, Did the ball cross the line?
According to an article in the Telegraph (2010) the world’s football governing body FIFA was again under much criticism during the South Africa 2010 World cup. In a match played between England and Germany at the Free State stadium, Frank Lampard’s 38th minute shot that crossed the German line was ruled out despite as a goal, despite unambiguous evidence of its legitimacy, the problem; human error. This brought to light the debate for goal line technology.
Also another issue is the case of bias and discrepancies in referee’s decision. According to The Guardian (2010) Luis Fabiano’s second goal for Brazil against Cote d’ Ivoire was a double handball play and there was evidence to suggest that the referee, Stephane Lannoy smiled about it with the player afterwards. Also, in 2009, Ireland was robbed of a world cup place after French striker Thierry Henry handled the ball in the build up to William Gallas’ decisive extra time goal, earning a 1-1 draw on the night (bbc.com).
In 2011, Mohammed Bin Hammam and Jack Warner, two of FIFA’s most powerful men were investigated for corruption on chargers that both men sort to buy votes relating to the body’s presidential election.
Other allegations include issues of racism on the field, amongst spectators and even at the head of FIFA. In an interview with CNN (18/11/2011) FIFA president Sepp Blatter made a rather controversial comment which suggested that racism in football should be considered as an inappropriate gesture which may be part of the game which led to a series of apologies by the president. This was a follow up to the alleged controversial racist slur by England football captain and Chelsea Captain, John Terry, aimed at QPR player Anton Ferdinand in a game on the 23rd October, currently under investigation by both the FA and the Metropolitan Police. (bbc.co.uk)
Within FIFA, there are a number of internally and externally driven risks associated with the organisation. Identified as a major risk to the success of FIFA from an internal perspective are the employees. As mentioned earlier, FIFA employs about 310 employees from over 35 countries. However, in recent years, there have been a number of incidents within the organisation suggesting employee fraud. In a report by the BBC (2010), three senior FIFA officials who were supposed to vote on the 2018 and 2022 World Cup bids took bribes totalling $100m (£64m) over 175 payments, made payable by sports marketing company; International Sports and Leisure (ISL) between 1989 and 1999. Another report suggested evidence that a fourth senior FIFA executive was involved in the resale of World Cup tickets to touts.
According to reports in the Sunday Times (October 2010), cited in sky news; two members of the executive committee, Reynald Temarii of Tahiti and Amos Adamu of Nigeria, offered to sell their votes in the 2010 and 2022 World Cup bid.
Another report in the Guardian (2011), suggests fresh money laundering allegations against the Brazilian FIFA executive committee member; RicardoTeixeira, the son-in-law of former FIFA president Joao Havelange. This allegations if confounded, could lead to the unearthing of documents detailing past wrong doings which may cause major disruptions in the successful organisation of the proposed 2014 World Cup in Brazil.

Risk Audit
Internal Risk
A major internal risk facing FIFA is employee fraud and corruption. This is an operational risk which is caused by inadequate or failed internal processes which arises from external events. While understanding that risks are linked to objectives and come up when organisational objectives are fully stated, it is suggested that the risk associated with corrupt employees within FIFA was triggered by set objectives such as the biding process for the 2018 and 2022 world cup. A member of the select committee, Conservative MP Damian Collins, according to the BBC, said evidence submitted by the Sunday Times claimed FIFA executive committee members Issa Hayatou, from Cameroon, and Jacques Anouma, from the Ivory Coast, were paid nearly £1m to vote for Qatar's successful 2022 bid. It is important to put into consideration the tendency of this risk to discredit the credibility of the world’s football governing body as well as the allocation and bidding process. The severity of this risk includes loss of major sponsors such as Coca-cola and Visa since the FIFA World Cup relies on sponsorship to host the mega event. According to a report by the BBC, sponsors are beginning to express concern over corruption allegations. A Coca-cola spokesman stated that it is “distressing and bad for the sport”; Adidas stated that “the whole debacle is neither good for football nor FIFA nor its partners” and Visa echoed: “the current situation is clearly not good for the game...we ask that FIFA take all necessary steps to resolve the concerns that have been raised.” This concern arises from the low degree of response to risk demonstrated by FIFA. An example of a high response to risk is seen in the FA swift launch into the racism allegations levied against Chelsea captain; John Terry. This makes the FA seen strong and forceful, sending out a clear message to stakeholders on what isn’t acceptable within sport.
External risk
Analysing the effects of country related risks factors. It is suggested that the soaring temperatures in the Arabian Gulf posses a high health risk to not just the key players, but also the spectators and this is bound to affect the success of the game. In a report by the daily mail (23/07/11), issues were raised about the soaring summer temperatures of 37 degrees Celsius in Chicago and its effect on the health and performance of Manchester United players in their game against MLS Chicago Fire. This suggests an eminent health risk as temperatures can reach 50 degrees during the summer months in Qatar. Also, allegations of corruption in the bidding process within the internal environment of FIFA put Qatar’s eligibility to host the mega event under more scrutiny.
Risk Assessment
Risk Strategies
Summary and Conclusion
References:
Classic Football: History of FIFA. http://www.fifa.com/classicfootball/history/fifa/pastpresidents.html
Previous FIFA World Cups: http://www.fifa.com/worldcup/archive/index.html
Jennings, W., Lodge, M. (2009) Governing Mega Events: Tools of security risk management for the London 2012 Olympic Games and FIFA 2006 World Cup in Germany. Paper for the 59th Political Studies Association Conference, Manchester UK
The Guardian World Cup 2010 Diego Maradona – Luis Fabiano did a Double Handball http://www.guardian.co.uk/football/2010/jun/21/diego-maradona-luis-fabiano-handball
Irish Cheated by Henry Handball http://news.bbc.co.uk/sport1/hi/football/internationals/8367420.stm
John Terry Interviewed by Police Over Race Allegations http://www.bbc.co.uk/news/uk-15932362
FIFA Chief Blatter: there is no on-field racism in football http://edition.cnn.com/2011/11/16/sport/football/football-blatter-fifa-racism/index.html
The Gaurdian (30/11/2011) Brazilian corruption investigation presents new headache for Fifa http://www.guardian.co.uk/football/2011/nov/30/brazilian-corruption-investigation-fifa-teixeira accessed 01/12/2011

BBC.com FIFA corruption allegations worry sponsors http://news.bbc.co.uk/sport1/hi/football/13598982.stm

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