Understanding Risk and Hazard

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Questions and Answers

What type of injuries are commonly associated with slip-and-fall incidents?

Skin reactions

Musculoskeletal injuries (correct)

Security-related accidents

Respiratory illnesses

Which of the following events is categorized as a fortuitous event in the tourism industry?

Slip-and-fall injury

Elevator accident

Food poisoning

Earthquake (correct)

Among the following, which is NOT a typical cause of accidents in the tourism industry?

Volcanic eruption

Flood

Landslide

Musculoskeletal injury (correct)

What type of illness can result from exposure to certain conditions in the tourism industry?

Respiratory illness Signup and view all the answers

What is an example of a risk associated with transportation in the tourism industry?

Air accidents Signup and view all the answers

Which factor is NOT classified under security-related accidents?

Land erosion Signup and view all the answers

Which of the following disasters is considered a natural calamity affecting tourism?

Typhoon Signup and view all the answers

Which risk can escalate after an earthquake in the context of tourism?

Transportation accidents Signup and view all the answers

What is defined as the probability of a threat leading to damage or loss?

Risk Signup and view all the answers

Which of the following best describes a hazard?

A source of potential damage or harm Signup and view all the answers

What is the primary purpose of risk management as defined in ISO31000?

To identify and prioritize risks Signup and view all the answers

Which of the following sources of risks refers to legal issues that may arise?

Legal liabilities Signup and view all the answers

In risk management, what is meant by 'preemptive action'?

Taking measures to avoid adverse occurrences Signup and view all the answers

How does risk relate to the uncertainty of expected earnings?

Risk measures investor's willingness to face uncertainty Signup and view all the answers

What distinguishes risk from hazard?

Risk measures exposure to harm, while hazard is the source Signup and view all the answers

What aspect of risk management is focused on controlling the probability of unfortunate events?

Coordination and application of resources Signup and view all the answers

What is the primary goal of credit risk management in the tourism and hospitality industries?

To maximize a bank's risk-adjusted rate of return Signup and view all the answers

How do risks and accidents differ in the context of risk management?

Risks are preventive while accidents are reactive Signup and view all the answers

Which of the following is NOT considered a common injury in the hospitality industry?

Accidental drowning Signup and view all the answers

What is a key component of risk management in the tourism and hospitality industry?

Ensuring emotional and physical safety Signup and view all the answers

What constitutes credit risk in the tourism and hospitality context?

The potential failure of a bank borrower to meet obligations Signup and view all the answers

Which of the following factors can contribute to risk in financial markets?

Unpredictable natural disasters Signup and view all the answers

Which type of risk involves deliberate attacks on a business?

Security-related risks Signup and view all the answers

What is the impact of effective accident management in the hospitality industry?

Reduction of costs related to accidents Signup and view all the answers

Which of the following is NOT categorized as a natural disaster?

Animal bites Signup and view all the answers

Terrorism is primarily characterized by what type of actions?

Political ideologies Signup and view all the answers

What is the first step in implementing strategies to manage uncertainties?

Threat identification Signup and view all the answers

Which strategy does NOT belong to the list of strategies for managing threats?

Enhancing exposure to the threat Signup and view all the answers

What type of events does risk management consider as 'negative events'?

Accidents and natural disasters Signup and view all the answers

Which of the following is a potential consequence of terrorism?

Widespread fear and insecurity Signup and view all the answers

What is the purpose of assessing vulnerabilities in risk management?

To identify weak points in critical assets Signup and view all the answers

Which type of disaster involves the effects of water-related phenomena?

Natural floods Signup and view all the answers

What is one key principle of risk management according to the International Organization for Standardization?

It should be an integral part of organizational processes. Signup and view all the answers

Which step is NOT part of the risk management process as defined by ISO 31000?

Market analysis Signup and view all the answers

Which principle emphasizes the importance of tailoring risk management?

Risk management should be tailorable. Signup and view all the answers

What is a required action for continual improvement in risk management?

Continuous and periodic re-assessment of risk management. Signup and view all the answers

Which of the following factors is considered in determining methods of identifying risks?

Culture Signup and view all the answers

What does the principle of transparency and inclusiveness in risk management imply?

Risk management processes should involve input from various stakeholders. Signup and view all the answers

Which characteristic is essential for risk management to respond to changes effectively?

Dynamism and interactivity. Signup and view all the answers

What is the purpose of creating a risk management plan in the process?

To systematically address identified risks. Signup and view all the answers

Study Notes

Risk Definition

Risk can be defined as a situation that exposes someone or something to danger or loss. It includes physical safety, property loss, and financial business risks.
The probability of threat of damage, injury, liability, or any other adverse occurrence caused by external or internal vulnerabilities.
Implies future uncertainty about deviation from expected earnings or expected outcome.
Measures the uncertainty that an investor is willing to take to realize a gain from an investment.

Risk vs Hazard

Hazard is any source of potential damage, harm, or adverse health effects.
Risk is the chance or probability that a person will be harmed or experience an adverse health effect if exposed to a hazard.

Risk Management

Is the identification, evaluation, and prioritization of risks.
Involves coordinated and economical application of resources to minimize, monitor, and control the probability of unfortunate events.

Sources of Risks

Uncertainty in Financial Markets
Threats from Project Failures
Legal Liabilities
Credit Risk
Accidents
Natural Causes and Disasters
Deliberate Attack from an Adversary
Events of Uncertain or Unpredictable Root Cause

Risk Management in Tourism and Hospitality

Involves two main aspects: safety and security.
Operators have a moral and ethical responsibility to ensure the safety of guests and employees, including avoidance of emotional and physical harm.
Protection of business operations including protection against damage to property, persons, and property, and future litigation.

Credit Risk

Potential that a bank borrower or counterparty will fail to meet its obligation following agreed terms
Goal is to maximize a bank's risk-adjusted rate of return by maintaining credit risk exposure within acceptable parameters
Important to the tourism and hospitality industries due to financial transactions.

Accidents in Hospitality

Accidents are reactive, while risks are preventative.
Accidents are categorized as slip-and-fall injuries, musculoskeletal injuries, skin reactions, respiratory illnesses, security-related accidents, food poisoning, and elevator and escalator accidents.

Accidents in Tourism

Can be caused by natural events such as earthquakes, volcanic eruptions, floods, landslides, erosion, fire, storms, typhoons, and transportation accidents.
Additionally, activities resulting in accidents include pool accidents, animal bites or attacks, drowning, and electrocution

Natural Causes and Disasters

Categorized into three groups: earth movements, weather-related events, and floods, mudslides, landslides, and famine

Deliberate Attack from an Adversary

Terrorism is a significant and threatening calamity affecting the global community.
Involves violence or the threat of violence to achieve political, religious, ideological, or social objectives.
Can be done by governments, non-state actors, and individuals.

Events of Uncertain or Unpredictable Root Cause

Negative events or risks.
Positive events or opportunities.

Strategies to Manage Threats

Avoidance
Reduction
Transfer
Retaining some or all part of the potential or actual consequences

Strategies to Manage Uncertainty (Method)

Threat identification or characterization.
Assessment of the vulnerability of critical assets to specific threats.
Risk determination.
Identification of techniques to reduce those risks.
Prioritization of the measures.

Risk Management Principles

Risk management should create a value.
Should be an integral part of organizational processes.
Should become part of the decision-making process.
Should explicitly address uncertainty and assumptions.
Should be placed in a systematic and structured process.
The best available information should be the bases of risk management.
Risk management should be tailorable.
Should take human factors into account.
Should be transparent and inclusive.
The dynamism, interactivity, and responsiveness to change must be evident on the risk management
Should be capable of continual improvement and enhancement.
There is a need for continuous and periodic re-assessment of the risk management.

Steps in the Risk Management Process

Context establishment.
Identification of potential risk.
Risk assessment.
Creation of risk options.
Identification of potential risk management treatments.
Make a risk management plan.
Execute the plan.

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Description

This quiz explores the concepts of risk and hazard, emphasizing their definitions, differences, and the importance of risk management. Participants will learn how to identify and prioritize risks, as well as the sources of these risks. Test your knowledge on these fundamental principles of risk assessment.