Tourism Risk Management and Legal/Ethical Considerations

Flashcards on risk management principles, types of risks, and legal/ethical considerations in tourism and hospitality.

Risk Management involves __.

A systematic approach to managing risks, which can be financial, operational, strategic, or reputational.

__ is a situation involving exposure to danger.

A situation involving exposure to danger.

A Hazard __.

Is a source of danger.

Tourism Risk Management is __.

About being prepared for things that could go wrong and having a plan in place to minimize the damage.

Hazard is while risk is .

Something to cause harm while risk is a chance any hazard will cause harm to somebody.

Internal Risks __.

Come from inside the organization; the company can control or fix.

External Risks __.

Come from outside the organization; the company cannot control.

Crisis Management is __.

How the organization handles problems or crises that come up.

Disaster Management __.

Involves working with other organizations and agencies to handle larger-scale emergencies or natural disasters.

Identify (in Risk Management) means __.

Spot potential risks early.

Analyze (in Risk Management) means __.

Figure out how these risks could affect the business.

Evaluate (in Risk Management) means __.

Decide how serious the risk is and how likely it is to happen.

Treat (in Risk Management) means __.

Take actions to prevent or reduce the risks.

Monitor and Review (in Risk Management) means __.

Keep track of risks over time and adjust plans if necessary.

Integrated (Principle of Effective Risk Management) means __.

Risk management should be part of everything an organization does.

Structured and Comprehensive (Principle of Effective Risk Management) means __.

A clear and organized approach ensures consistency.

Customized (Principle of Effective Risk Management) means __.

The approach should fit the company’s specific needs.

Inclusive (Principle of Effective Risk Management) means __.

Everyone involved should have a say in risk management.

Dynamic (Principle of Effective Risk Management) means __.

Risks change over time, so management should adapt.

Best Available Information (Principle of Effective Risk Management) means __.

Decisions should be based on reliable data.

Human and Cultural Factors (Principle of Effective Risk Management) means __.

People’s behaviors and company culture affect risks.

Continual Improvement (Principle of Effective Risk Management) means __.

Learning from past experiences improves risk management.

Financial Risk is __.

Loss of money due to market changes.

Operational Risk is __.

Problems in daily business operations.

Cybersecurity Risk is __.

Digital threats like hacking or phishing.

Strategic Risk is __.

Poor business decisions or unexpected market changes.

Compliance Risk is __.

Failing to follow laws and regulations.

Reputational Risk is __.

Bad publicity that affects customer trust.

Safety & Security Risks include __.

Accidents, crime, terrorism, or natural disasters.

Health Risks include __.

Diseases and pandemics.

Environmental Risks include __.

Climate change and natural disasters.

Economic Risks include __.

Fluctuations in money and market conditions.

Reputation Risks include __.

Negative reviews and online backlash.

People (Categories of Operational Disruption) refers to __.

Staff issues like absences, sickness, or lack of skills.

Premises (Categories of Operational Disruption) refers to __.

Damage to buildings, equipment, or assets.

Processes (Categories of Operational Disruption) refers to __.

System failures or mismanagement.

Products (Categories of Operational Disruption) refers to __.

Problems with service or goods.

Risk Avoidance means __.

Staying away from risk entirely.

Risk Reduction means __.

Taking steps to minimize the impact of a risk.

Risk Sharing means __.

Dividing the risk with others.

Risk Transfer means __.

Passing the risk to another party (usually through insurance).

Risk Acceptance and Retention means __.

Acknowledging the risk and dealing with the consequences.

Risk Identification means __.

Identify all possible risks that could harm operations, assets, or people.

Risk Assessment means __.

Analyze how serious the risk is and how likely it is to happen.

Plan Phase (in Risk Management) means __.

Set goals for managing risk; identify potential risks and plan how to address them.

Do Phase (in Risk Management) means __.

Implement the risk plan on a small scale or pilot test it first.

Check Phase (in Risk Management) means __.

Evaluate if the risk actions are working, see if your goals are achieved or if there are gaps.

Act Phase (in Risk Management) means __.

Improve the risk management strategy based on evaluation; apply successful solutions permanently.

Risk Prioritization __.

Ranks the risks by their seriousness and chance of happening.

Risk Mitigation __.

Take action to reduce the risk's likelihood or impact.

Risk Monitoring __.

Keep an eye on risks and the effectiveness of the solutions.

Legal Considerations are __.

Laws and rules that must be followed; breaking them can result in fines, closure of the business, or legal actions.

Health and Sanitation Codes require that __.

Businesses must meet strict hygiene standards for all areas, and health inspectors check these standards regularly. Violations can result in fines or closures.

Employee Hygiene Regulations state that __.

Workers must complete food safety training, follow hygiene practices (handwashing, clean uniforms), and report when they are sick.

Occupational Health and Safety Laws state that __.

Workplaces must be safe for employees, with good ventilation, clean work areas, and safe waste disposal.

Environmental Regulations require __.

Proper handling of waste, chemicals, and water sanitation to avoid pollution or harm to the environment.

Ethical Actions are __.

Based on “doing what is right,” even if not specifically required by law.

Protecting Public Health (Ethical Consideration) means __.

Businesses should always ensure food and environment safety, not just when required.

Transparency with Guests (Ethical Consideration) means __.

Being honest about food ingredients, allergen presence, food sources, and hygiene ratings builds customer trust.

Fair and Safe Staff Treatment (Ethical Consideration) means __.

Providing clean break areas, hygiene supplies, and protective equipment, and never forcing sick staff to work.

HACCP (Hazard Analysis Critical Control Points) is __.

A food safety system that analyzes, controls, and monitors hazards during food production.

Hazard Analysis Critical Control Points (HACCP) __.

Identifies and controls hazards at critical points in food production.

FDA/Local Food Codes are __.

Laws that require safe food preparation, proper storage, handling, and maintaining correct temperatures.

Labeling Laws require that __.

Allergen and ingredient labels must be clear and accurate to protect consumer health.