Page 127 - Risk Report 2024

7. Energy 8. Logistics

Energy risks (including national grid failure) significantly impact 8. Logistics
venue operations, event logistics, and broadcasting. Power Risks associated with industry, logistics, and transport
outages during events not only cause issues with ticketing supply chain resilience can disrupt events, competitions,
systems and broadcasting failure but also lead to potential and operations. Profit and loss margins have substantially
safety challenges for athletes and spectators. Furthermore, increased due to exponential increases in transportation costs.
unreliable energy supply affects the quality of events as it Furthermore, increased costs and event cancellations are
impacts the fan experience through issues such as operating linked to consequences associated with risks such as unreliable
systems, lighting, cooling, and heating systems. Loss of power transportation networks and unexpected disruptions, including
in terms of broadcasting live events results in loss of income to strikes and natural disasters. Moreover, port inefficiencies
rights holders and sponsors. Contingency planning is required increase transport time and cost and the lead time to procure
to mitigate such risks, although backup power systems often resources and equipment. It is already a financial burden due
require further financial investments. Coordinating with energy to the weak Rand, and the added lead time to import critical
authorities is critical to ensure resilience against power infrastructure from abroad does not help infrastructure
outages and failures. The renting of generators will increase the development and maintenance. To mitigate these risks, key
cost of sporting events. The supply and demand during stage stakeholders must invest in contingency plans.
6 load shedding further increases cost and the risk of having
generators available. The international visitor experience
during sporting events is negatively impacted by loadshedding.

9. Food Security 10. Climate Change
There is no direct impact on the sports industry in terms of food Weather can significantly impact the hosting of events,
security. However, an indirect risk associated with land and water especially outdoor sporting events. Climate change, heat waves
could cause the sports industry to compete with agricultural and severe storms could damage infrastructure and endanger
needs. Socioeconomic impacts such as income and access athletes, participants, and spectators. The sports industry
to opportunities could intensify food insecurity. The sports further contributes to carbon emissions through travel, event
industry could mitigate such risks by adopting sustainable logistics, and venue operations, which contribute to climate
practices. Collaborations between sports organisations and change. Renewable energy use, carbon offsetting, and waste
food security initiatives could promote awareness around food reduction initiatives are all mitigating actions that the sports
insecurity, social responsibility, and community development. industry could invest in.

11. Technology 12. Skills

The increase in data collection for player performance Disparities in the SA educational system often create knowledge
augmentation and fan engagement poses a significant risk gaps, increasing a need for more expertise in critical areas.
to the sports industry as it introduces vulnerability in terms Skill shortages in the sports medical and management fields
of data privacy and security breaches. Challenges associated impact the industry’s ability to compete nationally and globally.
with real-time interaction with live events further create These challenges should be addressed by increasing efforts in
an easy avenue for illegal betting during sporting events. talent development programs. Partnerships with educational
Furthermore, the interconnected digital platforms and sports institutions offering specialised courses are critical to the
infrastructures increase the possibility of cyber-attacks. This further development of athletes and administrators. To ensure
could compromise sensitive data and disrupt operations. Such competitiveness and sustainability, it would be crucial for
risks could be mitigated by conducting regular risk assessments Government support and private sector investments to provide
and by prioritising cybersecurity measures by investing in a skills development and further education to those in the sports
robust data protection framework. industry. SA sporting codes have a strong transformation focus
on all levels within the sporting organisation. It is of the utmost
importance that those employed within the organisation must
have a suitable skill set.