Fundamentals of Risk Management

TAbLE 
29.2
Sports club: typical stakeholder expectations

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Risk governance
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It is important to consider the effect that changes, developments, projects and 
tactics will have on the full range of stakeholders. By considering the interests of 
stakeholders in detail, many unexpected surprises can be avoided. The impact of the 
project, both in execution and after delivery of the project, should be considered in 
detail. This consideration should extend both to internal and external stakeholders 
for whom the changes that the project will bring may be significant. These changes 
could relate to environmental factors during the construction project and after the 
work has been completed, as well as changes to the working arrangements for staff.
It may be a good idea to bring some people who are not directly involved in the 
activities of the organization into the project planning. This will enable the organ-
ization to fully understand the impact of the work that will be undertaken. When 
considering stakeholder management, the level of detail will often dictate whether 
engagement with stakeholders is successful. Even with successful projects, being
able to minimize negative impacts by early attention to key stakeholders and their 
expectations may prove invaluable.
stakeholders and operations
There may be many stakeholder groups involved in the operational activities of
an organization. To continue with the example of a sports club, fans will be major 
stakeholders in a large number of different aspects of the club’s activities. One of
the primary concerns of fans will be good results on the pitch. They will also be
interested in other operational aspects, including the arrangements for buying
tickets, transport and access arrangements, as well as the facilities provided within 
the stadium.
Pharmaceutical companies are generally large organizations with a very diverse 
range of stakeholders. In particular, a pharmaceutical company producing a critical 
medication has an obligation to ensure a constant availability of that medication for 
all its patients. Patients should be viewed by the pharmaceutical company as impor-
tant stakeholders who have expectations regarding the availability and effectiveness 
of the medication that has been prescribed.
The stakeholder groups that have an interest in the operational activities of an 
organization are likely to be customers, suppliers and others that may be affected
by disruption to the normal efficient operation of the organization. For example, 
customers are likely to be affected if a hazard risk were to materialize. Likewise,
suppliers are stakeholders in the organization and they will suffer if the organization 
is disrupted to the extent that their supplies/produce/components/services are no 
longer required.
Other stakeholder groups that are likely to be affected by hazard risks will also 
have an interest in the continuity of the activities of the organization. For financial 
organizations such as banks, customers would be immediately affected if critical IT 
systems fail.
Corporate governance models require the involvement of stakeholders and adequate 
stakeholder dialogue. In several countries, employees are recognized as stakeholders 
in the organization to the extent that employee representation on the board may be 
mandatory. The box below considers the position in some European countries.

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