THC 2 (Lesson 1 RISK MGT ) Flashcards
Why manage risks in tourism?
*To protect both your customers and your business.
*To be prepared to deal with potential crises.
*To Identify possible risks in the tourist destination
*To determine your risk management strategy/ies
*To set up a plan to manage risk.
*To Train tourism facilities staff and team up with stakeholders to prevent or manage the risks.
*To be clear and honest in communication in case of a crisis
*To provide opportunities to retrieve your business.
Tourism companies are increasingly facing incidents that involve risks for both tourists and the tourism business such as:
*political unrest, terrorist attacks, earthquakes, tsunamis and health-related incidents.
*These can have a tremendous negative impact on tourism destinations.
*In addition, the damage to a destination’s image may have even longer-lasting effects than the actual damage from the crisis.
Importance of risk management
does not start with a crisis, but much earlier. To be prepared for a crisis,
Risk management
The use of available information to estimate the risk to individuals or populations,property, or the environment, from hazards. Risk analysis generally contains the following steps: hazard Identification, hazard assessment, elements at risk/exposure analysis, vulnerability assessment and risk estimation.
RISK ANALYSIS
The stage at which values and judgements enter the decision process, explicitly or implicitly, by including consideration of the importance of the estimated risks and the associated social, environmental, and economic consequences, in order to identify a range of alternatives for managing the risks.
RISK EVALUATION
The process of decision making for managing risks, and the implementation, or enforcement of risk mitigation measures and the re-evaluation of its effectiveness from time to time, using the results of risk assessment as one input.
RISK CONTROL OR RISK TREATMENT
The process of risk analysis and risks evaluation
RISK ASSESSMENT
The complete process of risk assessment and risk control (or risk treatment).
RISK MANAGEMENT
HAZARDS FOR TOURISM DESTINATION
ATMOSPHERIC
EARTH (GEOLOGICAL)
BIOLOGICAL
HUMAN
ATMOSPHERIC
Cyclones
Tornadoes
Storms
Floods
Frosts
EARTH (GEOLOGICAL)
Earthquakes
Tsunamis
Landslides
Volcanoes
Erosion
HUMAN
Industrial accidents
Traffic accidents
Crime Terrorism
Economic
Political conflict
BIOLOGIC
Human epidemics
Plant epidemics
Animal epidemics
Plagues
Fires
Top 10 tips on risk management in tourism
Identify the risks
Determine your risk management strategy
Develop a risk management plan for your tourism business
Team up with stakeholders
Train your staff
Test your plan
Provide clear and honest crisis communication
Keep informed about possible negative travel advice
Revive your business after a crisis
Reposition your business after a crisis
Make an inventory of the potential hazards and risks that could threaten your destination.
This could concern:
natural hazards
technological hazards
biological hazards
civil or political hazards.
Tip 1
Tip 1: Identify the risks
Identify the nature of the potential crisis.
Consider the:
cause
frequency
duration
speed of onset
scope of impact
destructive potential.
Tip 2:
Tip 2: Determine your risk management strategy
There are several strategies for risk management, including
avoiding the risk
reducing the likelihood of the consequences
transferring the risk
retaining the risk.
Learn from previous crises and disasters that have taken place in your area. Also look into similar crises that have occurred in other areas.