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Categories of risk
Compliance report
Hazard risk
Opportunity risk
Control risk
A category of risk that involves government-mandated licenses and business, permits, and requirements
compliance risks
an insurable risk that prevent and deter the achievement of company’s goals, mission, and objective
hazard risks
a risk that can cause uncertainty and doubt about the ability to achieve company’s goal
control risk
deliberately sought by the org specifically for future or long term success
opportunity risks
4P’s
people
premises
processes
products
what does PNS stands for
Philippine National Standards
the principles of effective risk management as stipulated in PNS
integrated
structured and comprehensive
customized
inclusive
dynamic
best available information
human and cultural factors
continual improvement
types of risk
financial risk
operational risk
cybersecurity risk
strategic risk
compliance risk
reputational risk
risk can emerge, change, or disappear as an org’s external and internal context changes
dynamic
the inputs to risk management are based on historical and current information future expectations. Info should be timely, clear, and available to relevant stakeholder
best available information
it can significantly influence all aspects of risk management each level and stage
human and cultural factors
risk management is continually improved through learning and experience
continual improvement
risk management is an integral part of all organizational activities
integrated
a ___ approach to to risk management contributes to consistent and comparable results
structured and comprehensive
the risk management framework and process are ___ and proportionate to org’s external and internal context related to its objective
customized
approriate and timely involvement of stakeholders
inclusive
responses to risk
risk avoidance
risk reduction
risk sharing
risk trasfer
risk acceptance and retention
types of risk in tourism
safety and security risks
health risks
environmental risks
economic risks
reputation risks
crucial process that helps identify, assess, and mitigate potential risks that could impact an organization’s objectives
risk management
Benefits of risk management
reduces financial losses
avoids reputational damage
enhances resilience
improves strategic decision-making
why is risk management important
protects againts financial expenses, inefficiencies, reputational damage, and other potential losses.
identifying and analyzing risks to a destination or organization and deciding what can and should be done about them
tourism risk management
a situation involving exposure to danger
risk
a source of danger
hazard
root causes of risks
internal and external circumstances
example of this root cause are human error or system failures
internal circumstances
example of this root cause are global crises, climate change, or technological advancement
external circumstances
tourism industry should be involved in both:
crisis management and disaster management
primary goal of risk management
to identify, assess, and address any financial, legal, strategic, and security risks to an organization.
type of risk in business that involve changes in market conditions, interest rates, exchange rate, credit risks, liquidity risk
financial risk
type of risk in business that involve human error, tech and system failures, and operational inefficiencies/natural disasters or geopolitical instability
operational risk
type of risk in business that involve data breaches, cyberattacks, phishing attempts, and issues of unauthorized access to company systems or info
cybersecurity risk
type of risk in business that is associated with poor business decisions, ineffective strategies or inadequate responses to technological changes or shifts in customer behavior
strategic risk
type of risk in business that involve issues with following laws, regulations and standards
compliance risk
type of risk in business that involves anything that damages an org’s public face, such as negative publicity, customer dissatisfaction, or ethical issues
reputational risk
type of risk in tourism that involve crime, terrorism, natural disasters, and accidents
safety and security risk
type of risk in tourism that involve epidemics, pandemics, and travel-related illnesses
health risks
type of risk in tourism that involve climate change, natural disasters, environmental degradation
environmental risks
type of risk in tourism that involve financial instability, currency fluctuations, and market changes
economic risks
how to use risk analysis
identify threats
estimate risk
type of risk in tourism that involve negative publicity, social media crises, and brand image
reputation risks
Not participating in activities that might negatively affect the org
risk avoidance
Accepts risk but aims to minimize the impact or keep any loss from spreading
risk reduction
Transferring all/some to another party
risk sharing
Contracting a third party to absorb the risk
risk transfer
Accepting potential consequences of risk and preparing to manage them if they happen
risk acceptance and retention
PDCA
Plan-Do-Check-Act
Often used in quality management, project management, and various operational processes
PDCA
Setting objectives, identifying problems or opportunities for improvement, and developing a plan to address those issues happen in this phase
plan phase
executing the actions planned in the first phase
do phase
Evaluating the results during do phase
check phase
Taking insights from the check phase and deciding if the plan worked
act phase
best practices for risk management in tourism
1. Conduct Regular Risk Assessments
2. Develop and Update Crisis Management Plans
3. Communicate Effectively
4. Collaborate with Stakeholders
5. Invest in Employee Training
5 steps of the risk management process
risk identification
risk assessment
risk prioritization
risk mitigation
risk monitoring
recognizing potential threats to an org, its operations and workforce
risk identification
focuses on analyzing and evaluating potential risk factors
risk assessment
prioritized risks based on their likelihood and impact
risk prioritization
implement strategies to mitigate or reduce the likelihood and/or impact of each prioritized risk
risk mitigation
Continuously monitor and review the risk management to plan to ensure its effectiveness
risk monitoring
challenges in food safety and sanitation
Time and Money
Language and Culture
Literacy and Education
Pathogens (Foodborne Illnesses)
Unapproved Suppliers
High-risk customers
Ready-to-eat foods
Staff turnover
Global Supply Chains risks
Contamination from Chemicals
Allergens
Climate Change
Food Fraud
Inadequate Food Safety Regulations and Enforcement
Technology and Automation
Food Safety in Non-traditional Food Systems
this people are more prone to be exposed to diseases because of low immunity levels.
immunocompromised people
A hazard that includes viruses, bacteria, parasites, fungi
biological hazards
A hazard that includes hair, dirt, and natural objects
physical hazards
A hazard that includes cleaners, sanitizers, and toxic metals
chemical hazards
food that contains moisture and protein and that has a neutral or slightly acidic pH. Such food requires time-temperature control to prevent the growth of microorganisms and the production of toxins.
Potentially Hazardous Food
Nation’s leading science-based, data-driven, service organization that protects the public’s health.
Center of Disease Control and Prevention
risk factors for foodborne illness
Improper holding temperatures
Inadequate cooking
Contaminated equipment
Poor personal hygiene
Improper food source
important prevention measures
Controlling time and temperature
Preventing cross-contamination
Practicing personal hygiene
Purchasing from approved, reputable suppliersthis man
Is a management system in which food safety is addressed through the analysis and control of biological, chemical, and physical hazards from raw material production, procurement and handling, to manufacturing, distribution and consumption of the finished product.
Hazard Analysis and Critical Control Point
cost of foodborne illness to an operation
Lack of customers and sales
Negative media exposure
Lawsuits and legal fees
Increased insurance premiums
Loss of reputation
Lowered staff morale
Staff missing work
Staff retraining
why hygiene and sanitation matter?
compliance with health and safety regulations
avoid lawsuits, penalties, or forced closure
fewer guest coplaints
a clean workplace boost employees motivation and pride
healthy staffs=fewer sick days and better service
staff trained in hygiene become brand ambassadors
hygiene and sanitation are non-negotiable in hospitality
a clean business is a successful business
businesses have a duty toprevent harm by providing clean environments and safe food
protecting public health
full disclosure of all allergens, food sources or hygiene rating builds trust
transparency with guest
staff should have access to protective equipment, hygiene supplies, and clean break areas
fair and safe staff treatment
these are mandatory requirements enforced by local, national, or international authorities
legal considerations
____ go beyond the law— they involved doing what is right and responsible for health and safety of guests, staff,a nd environment
ethical considerations
staff must follow hygiene protocols: clean uniforms, handwashing, illness reporting, mandatory training and certification for food handlers.
employee hygiene regulations
ensures a safe working environment. employers are legally responsible for the health and safety of their staff
occupational health and safety laws
proper waste disposal, chemical use, and water sanitation are regulated to avoid
environmental regulations
hotels and restaurants must meet sanitation standards for kitchens, bathrooms, guest rooms and staff areas. regulations are done by health departments, and violations can lead to penalties or shutdowns.
health and sanitation codes
proper labeling of ingredients and allegens is required to protect consumers
labeling laws
disease transmitted to people by food
foodborne illness
an incident in which two or more people get the same illness after eating the same food
foodborne illness outbreak
the path food takes from purchasing and receiving, through storing, preparing, cooking, holding, cooling, reheating, and serving.
flow of food