Chapter 2 Flashcards
A complex industry that involves a broad range of businesses, organizations, and government agencies that work together at different levels to deliver a complete tourism package.
Tourism
The process of determining risks that could potentially prevent the program, enterprise, or investment from achieving its objectives.
Risk identification
4 hazards
Natural
Civil/political
Technological
Biological
An extreme event that occurs naturally and causes harm to humans.
Natural hazards
The hazards being confronted by investors, corporations, and governments brought about by the political decisions.
Political hazards
Hazards caused by circumstances in the society that could vastly affect the society.
Civil hazards
Phenomenon whereby an individual or group of individuals who would travel to another place would engage in sexual activity with prostitutes.
Sex tourism
A process whereby societies come under or adopt western culture in areas such as industry, technology, law, politics, economics, lifestyle…
Westernization
Political hazards (5)
Trade barriers
Taxes
Political instability
Administration
Legislation
Regulations or policies that would restrict international trade like customs, tariffs, quotas and other.
Trade barriers
The bread and butter of the government.
Taxes
There are instances wherein the government in the international community would issue travel advisory in line with the political instability. (Riots, terrorism, martial law)
Political instability
The ability to manage plus the political will are essentials to the proper administration of any agencies for the effective and efficient service to people.
Administration
The process of giving effect to proposal or policy for everybody’s observance.
Legislation
It is an effect of the globalization of production, an increase of industrialization, and a certain level of risk of accidents connected with production, processes, transportation, and waste management.
Technological hazards
Technological hazards (6)
Industrial pollution
Nuclear radiation
Toxic wastes
Dam failures
Transport
Industrial
Technological accidents
Pertains to biological substances that stance a danger to the health of the living organism, chiefly humans. Aka biohazards.
Biological hazards
Biological hazards is aka as?
Biohazards
Virus, bacteria, fungi, parasites
Biological hazard
Specialize in identifying potential caused of accidents or loss, recommending, and implementing preventive measures, and devising plans to minimize costs and damage should a loss occur, including the purchase of insurance.
Risk managers
2 essential risk concepts
Inherent and residual risk
Refers to the exposure arising from a specific risk before an action is to be made by a risk manager.
Inherent risk
Is the exposure arising from a specific risk after risk manager has made any, and in case such action has proven useful.
Residual risk
The following issues must be addressed well: (5)
The cause of the event
Areas of impact
Enablers
Events
Potential consequences
Knowing the cause/reason behind the happening of an event is essential.
The cause of event
Vital in the decision-making process.
Areas of impact
Determination of enablers or organizational feature.
Enablers
Perfect proof
Events
This is important so as not to be left confused on the actual occurrence of the uncertainty.
Potential consequences
Necessary for the conduct of tourism activities to lessen the possibility of the risk being accomplished.
Risk management plan
Basic classifications of a risk management plan (2)
Preventive strategy
Contingency
To lessen the possibility of the risk impact before the risk becomes realized.
Preventive strategy
To address the issue of risk at the time of the event.
Contingency
Strategies of risk management (4)
Risk avoidance
Risk reduction
Risk transfer
Risk retention
Refers to the complete elimination of risk by merely avoiding the activities with attaching potential risks.
Risk avoidance
Refers to reducing the risk level through minimizing either the likehood or the consequences of a specific task….
Risk reduction
Consideration of risk reduction (4)
Observance of safety standards
Use of safety devices
Proper waste management system
Qualification requirements
The tourist accommodation providers are duty bound to assure the health and safety of the guests while they are on their premises.
Observance of safety standards
The burden is shifted from one party to another…
Risk transfer
Risk transfer may be accomplished by: (4)
Outsourcing
Derivatives
Contacts
Insurance
A process which commonly transfers a variety of risks to a partner.
Outsourcing
A financial instrument whose value is derived from the value of another asset.
Is not a product but a contract
Derivatives
A non-insurance risk transfer mechanism that accomplishes the goals of risk financing and risk control.
Contracts
A contract being represented by a policy in which an individual or entity receives financial protection or reimbursement against losses from an insurance company.
Insurance
A company’s decision to take responsibility for a particular risk it faces, as opposed to transferring the risk over to an insurance company.
Risk retention
Classifications of tourism stakeholders
Internal
External
A concept or practical of preparing people for an emergency.
Done through simulation
Safety drill
The assistance given to any person suffering a sudden illness or injury.
First aid
3 phases of risk-based
Planning
Designing
Execution
Under planning:
Risk identification
Risk impact analysis
Risk mitigation
A socio-technical method among stakeholders to seek process which leads to a better solution of an issue.
Risk communication
___ is a crucial element of a good crisis management system.
Crisis communication
It is the best way to ensure business continuity.
Planning
Gathering employees name, addresses, phone numbers and contacts
Employee data
Making copies of business licenses and registrations.
Business information
6 steps to build reputation after crisis
Keep talking
Take responsibility
Get stakeholders inside
Be authentic
Show strong leadership
The best defense - a good defense
