Boxing is a risk event. Monitoring risk is like watching boxing, both with the intention to strike opportunities, prevent and mitigate threats, make the right response, and to make the right decision.
As a risk-based management practitioner, the sometimes bloody sport of boxing is so fascinating in my view as it relates so well with the concept of risk.
Boxers have their response plan to prevent or mitigate the punches. The boxing judges have a decision to make and it has to be the right one
In boxing, if one does not see whether the punch landed and where it landed, then one might make the wrong choice who wins. They will not appreciate the actual impact the blows bring.
Judges will not move the score. Risk managers will not make account of a realized risk (problem). It is imperative that observers be as hawk-eyed as they can possibly be to make the right decision.
If a punch or sub-event passes by without anyone taking notice, the project can wrongly claim success and the losing boxer can do a victory dance. Like it or not, the project can end up a total failure, while anyone of the boxers a complete loser.
Losing is an Opportunity! Amazing Statistics!
When Floyd (Money) Mayweather (48-0, 26 KO) and Manny (Pacman) Pacquiao (57-6-2, 38 KO) finally fought for the 2015 reported USD$500 Million dollars Welterweight (147lbs) title fight mega-bout, this risk principle came to view. In 2016, the report was updated to USD$600M.
This was the biggest singular boxing event that the world has known. No future boxing event will probably even equal it in the next 50 to 100 years.
“A $500M figure is already absolutely staggering, and jaw-dropping when you put it in context:
1) It’s more than the GDP of seven different countries, according to the International Monetary Fund.
2) USD$ 500M is more than the military budgets of India, Japan and Germany.
3) You could buy SIX different private islands, and have change left over.
4) If you worked for minimum wage it would take 33,156 YEARS to make as much as the fight made in one night.
Source: Dator, J., 2015.SB Nation.Pacquiao vs. Mayweather made more money than anyone imagined”
The purse for the fight was set at $300million (£194,502,705), which both boxers agreed be split 60/40 in the American’s favour prior to the fight.
Over the 12 rounds, Mayweather earned $4,994,681 per minute of action, with Pacquiao earning $3,329,787 per minute.
I’m sure that everyone who is reading this cannot earn a minute of these boxers even in multiple life time. So unbelievable! Wow!
The fight against Floyd Mayweather in May 2015 broke every financial record in boxing history, including 4.6 million PPV buys and total revenue of $600 million from PPV, tickets, international TV, sponsorships and merchandise. Pacquiao made $120 million for the fight with Mayweather pulling down a payday twice as big. It broke the USD500M expectation set in 2015 (Badenhause, K., 2016.Forbes Business).
The fight was a risk event in its own right. It was a huge opportunity to a lot of people, especially to Manny and Floyd, win or lose!
The Eyes of the Beholder
PacMan thought he won.
Final official result: Floyd won by unanimous decision. However, the debate goes on. It continued to be an exciting fight years after. Technical hindsight in various boxing forums favored Pacquiao just like this featured video).
Who can really question an opinion?
Limitation to Objectives
A project Manager has to exercise caution because risk-based management can be quite subjective.
In boxing, if one does not see whether the punch landed and where it landed, then one might make the wrong choice who wins. They will not appreciate the actual impact the blows bring. Judges will not move the score. Risk managers will not make account of it.
Risk Managers tends to see things only based on where they stand. The event passes by without anyone taking notice. The project can claim success and the losing boxer can do a victory dance. The reference points are their individual or the company objectives the person represents.
Man is driven by what he observes and/or by what he perceives to be.
Objectivity versus Subjectivity
“Each individual player within the risk universe will see things a bit differently compared to the next person, with some people interpreting things in exactly the opposite fashion. In each case, the person can see only one attribute. The simplistic objective point of view is that risk is either a threat or an opportunity, depending on the observer’s orientation to the goal (Frago, R., 2015.Risk-based Management in the World of Threats and Opportunities).
It is therefore plain and simple. What a man does is influenced by his interest, the things he advocates, his biases within, and the framework (codes) he follows while executing what he needs to accomplish in the pursuit of his goals.
Rufran C. Frago – Author (26-Feb-17)
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