Sources of Risk in Hospitality and Tourism PDF

CCHTM1100: Risk Management as Applied to Safety, Security & Sanitation Risk Management in the Hospitality and Tourism Industry CENTRAL LUZON STATE UNIVERSITY CCHTM 1100: Sanitation Risk Management as Applied to Safety,...

CCHTM1100: Risk Management as Applied to Safety, Security & Sanitation Risk Management in the Hospitality and Tourism Industry CENTRAL LUZON STATE UNIVERSITY CCHTM 1100: Sanitation Risk Management as Applied to Safety, Hygiene and Sanitation COLLEGE OF HOME SCIENCE & INDUSTRY Sources of Risks DEPARTMENT OF HOSPITALITY Prepared by: AND TOURISM MANAGEMENT Jomerick F. Domingo LPT, MSHTM Asst. Professor I  https://www.youtube.com/watch?v=ysBwcUUeSfc https://www.youtube.com/watch?v=bePJ1Id2YtA What do you think is the repercussion of those Howincidents great the in the tourism industry? chance that someone will be harmed by the hazard Objectives After discussion, you should be able to: 1. Identify sources of risk 2. Explain the importance of identifying sources of risk related to hospitality and tourism. Sources of Risk Uncertainty in Financial Markets; Threats from project failures ( at any phase in design, development, production, sustainment life- cycles); Legal liabilities; Credit risk; Accidents; Natural causes and disasters; Deliberate attack from adversary; or Uncertainty in financial Markets 1. Innovation  Managers must be vigilant 2. Economic Policy enough in determining those uncertainties that could give 3. Geopolitical Risk more impact entirety of 4. Currency Fluctuation business  Awareness could be helpful in many circumstances like the reduction of so much confidence of the investors and the protection of wealth for an extended period of time. Threats from project failures  Threat usually embedded in the project  Success is being measured by avoiding the project failure to minimize the consequences. Right delivery+ appraised+ structured+ managed=Less negative impact on cost, scope, time and quality Compelling business development requires taking on calculated risk. Legal liabilities  Get rid of any legal responsibility attaching to the risk.  Risk Management is a tool a avoid injury in guest employees to protect their business operations from financial and physical conveniences.  Risk Management in Hospitality and Tourism Management is a two-way process. 1. The safety of the guests and employees, which includes avoidance to emotional and physical harm. 2. Protection to business operations which includes protection against damage to property, persons and future litigation. Credit risk -it is the potential that a bank borrower or counterparty will fail to meets its obligations following agreed terms. - The goal of credit risk management is to maximize a bank’s risk adjusted rate of return by maintaining risk credit exposure within acceptable parameters. - Banks need to manage credit risk inherent in the entire portfolio as well as the risk in individual credits and other transactions. Accidents  Accidents are reactive while risks are preventive.  Accident management is necessary to reduce the costs pertinent to the accident, to wit: damage to property, cost of rental, maximation of subrogation recovery  Management of risk is preventive as it would like to limit the occurrence of accidents. Common Injuries in the Hospitality industry 1. Slip and fall injuries 5. Security-related accidents 2. Musculoskeletal injuries 6. Food Poisoning 3. Skin reactions 7. Elevator and Escalator accidents 4. Respiratory illnesses Security-related Accidents Revised penal code of the Philippines Article 102 1. The innkeeper, tavernkeepers, and proprietorship of establishments or his employee violated a municipal ordinance or some general or police regularization. 2. A crime committed in such inn, tavern or establishment 3. The person criminally liable is insolvent In the second paragraph of Article 102, when all the following elements are present, the innkeeper is subsidiarily liable: 4. The guests have notified in advance the innkeeper or the representing him of the deposit of their own goods within the inn 5. The guest have followed the direction of the innkeeper of his representative concerning the care and vigilance of their goods. 6. Robbery or theft took such goods of the guests lodging in therein Accidents due to activities 1. Pool accident 2. Animal bites or attacks 3. Drowning 4. Electrocution Natural causes and disasters 1. Caused by movement of the earth. (earthquakes, volcanic eruptions and tsunamis) 2. Disaster related to weather. (hurricanes, tornadoes, el niño, la niña, extreme heat and freezing water) 3. Floods, mudslides, landslides, and famine Deliberate attack from adversary  Attacking the industry, economic recession and unemployment could be at stake.  Terrorism has become one of the more and more active and threatening calamities that affect the international community. Why is it necessary to identify the sources of How risk related to Hospitality andgreat the Tourism? chance that someone will be harmed by the hazard