Risk Management and Analysis in Hospitality and Tourism

These flashcards provide definitions and categories of risk, specifically focusing on workplace classifications, hazard-specific injuries, and the fundamental steps of risk analysis as outlined in the lecture notes.

Uncertainty in Financial markets

A source of risk requiring managers to be vigilant of market uncertainties, such as the impact of the TRAIN law on primary commodities for the food and hospitality industry.

Threats from project failures

A source of risk described as the treat usually embedded in the project that a manager must deal with rather than avoid.

Risk management in tourism and hospitality Industry

A two way process involving (1) Safety of the Guest and Employees and (2) Protection of the Business operation.

Credit Risk

Defined by (bis.org) as the potential that a bank borrower or counterparty will fail to meet it's obligations following agreed terms.

Accidents vs. Risk

Accidents are reactive while risk management is preventive, as it seeks to limit the occurrence of accidents according to automotive-fleet.com.

Natural Causes or disasters

Risks caused by natural movement of the earth, volcanic eruption, and water related disasters requiring a business to be prepared through proper planning.

Deliberate attacks from adversary

Identified by Albu (2016) as active and threatening calamities like terrorism which cause tourists to avoid affected areas.

HIRAC

An assessment tool used to classify workplace environments based on hazard identification and assessment.

Low Risk Workplace

A workplace with less exposure to hazards and low levels of danger, common for office staffs, teachers, and indoor company workers.

Average Risk Workplace

An environment with moderate exposure to hazards that can be prevented by proper planning and control measures.

High Risk Workplace

Environments where hazards affect workers and those outside the workplace, such as LPG distributors, chemical and biofuel works, healthcare, and construction.

Manual handling (Injuries)

Possible injuries requiring First Aid such as Fracture, Wounds & bleeding, and Sprains & Stains.

Slip & trip hazards (Injuries)

Potential injuries including Fractures, Sprains & strains, and Wounds & bleeding.

Machinery (Injuries)

Potential injuries including Crush injuries, Amputations, Wounds & bleeding, and Eye injuries.

Working at height (Injuries)

Potential injuries including Head injury, Loss of consciousness, Spinal injury, Fractures, Sprains & stains, and Crush injuries.

Electricity (Injuries)

Potential injuries including Fractures, Sprains & strains, Spinal injuries, Electric shock, Cardiac Arrest, and Burns.

Risk

A concept composed of two parts: the probability of something going wrong and the negative consequences if it does.

Risk Analysis

A process that helps identify and manage potential problems that could undermine key business initiatives or projects.

Two steps of Risk Analysis

First, identify threats that you face, and then estimate the likelihood that these threats will materialize.

Situations for Risk Analysis

Includes planning projects, deciding to move forward, improving safety, preparing for equipment failure or staff sickness, and planning for changes like new competitors or government policy.