Risk Management
Risk Management
Assignment 1
Kindly retrieve and read the two briefs written by Dr. David Hillson:
1. https://risk-doctor.com/wp-content/uploads/2020/06/06-When-is-a-risk-not-a-risk-Part-
1.pdf
2. https://risk-doctor.com/wp-content/uploads/2020/06/07-When-is-a-risk-not-a-risk-Part-
2.pdf
In less than 5 sentences write down what you understand about risk and how did your views and
understanding of risk changed after reading these documents.
Assignment 2
Kindly retrieve and read the article written by Dr. David Hillson entitled Project risks: identifying
causes, risks, and effects.
https://www.pmi.org/learning/library/project-risks-causes-risks-effects-4663
Within the context of the tourism industry and allied businesses identify at least two risks and their
corresponding causes and effects. Use the risk metalanguage suggested by the article.
‘As a result of <definite cause>, <uncertain event> may occur, which would lead to <effect on objective(s)>’
regular basis.
Legend:
E: Extreme risk; immediate action required
H: High risk; senior management attention needed
M: Moderate risk; management responsibility must be specified
L: Low risk; manage by routine procedures
As part of the process of assessing the likelihood and consequences of identified risks, it is important
to note that even a relatively minor incident can blow up into a public crisis. According to Wilks and
Moore (2006) some of the factors identified as likely to escalate a crisis include:
a. Number of people involved
This goes without saying – the greater the number, the bigger the crisis.
b. Age of the people involved
The media are far more aggressive in reporting stories that affect children.
c. Prominence of people involved
A "high profile" person, or one with significant connections can guarantee high media
interest.
d. Level of media interest or their access to a story
Even modest media interest is going to guarantee that you have a potential public relations
crisis on your hands. Reporters look for attention-grabbing headlines. Weaknesses in an
organization’s response will be reported with little mercy.
e. Nature of incident
Any incident following on from a similar recently reported incident, however coincidental, is
more likely to attract attention than if it had been an isolated incident.
f. Visibility
In the age of portable video and digital cameras, graphic pictures of an incident site can be
transmitted around the world within minutes.
Assignment 3
Kindly retrieve and view the YouTube video of Kobi Simmat on Risk Ranking Matrix - HOW TO RANK
RISK ISO 9001
https://www.youtube.com/watch?v=MrowycTmRXo
1. If the risk rating is assessed at ’10 Moderate’, what are the corresponding severity and likelihood
ratings
a. Severity is ‘Major’ and Likelihood is’Possible’
b. Severity is ‘Catastrophe’ and Likelihood is’Possible’
c. Severity is ‘Minor’ and Likelihood is’Possible’
d. Severity is ‘Major’ and Likelihood is’Rare’
2. If the severity of the potential outcome is assessed to be’ major’ and the likelihood of the potential
outcome is assessed to be ‘possible’, what is the resulting risk rating?
a. 24 (Catastrophic)
b. 14 (High)
c. 18 (High)
d. 9 (Moderate)
Appropriate – The correct level of treatment must be determined, based on the significance
of the risk. This ranges from a crisis treatment where the project cannot proceed without
the risk being addressed, through to a “do nothing” treatment for minor risks. We should
not spend large amounts of time or effort developing aggressive treatments for minor risks,
but we must also not spend too little time considering how to deal with key risks.
Affordable – The cost-effectiveness of risk treatments must be determined, so that the
amount of time, effort and money spent on addressing the risk does not exceed the
available budget or the degree of risk exposure. Each risk treatment should also have an
agreed budget, added to the approved project cost plan.
Actionable – An action window should be determined, defining the time within which risk
treatments need to be completed in order to address the risk. Some risks require immediate
action, while others can safely be left until later. We must be careful not to leave it too late
before we act.
Achievable – There is no point in describing risk treatments which are not realistically
achievable or feasible, either technically or within the scope of our capability and
responsibility. If your planned treatment is “Hope for a miracle” or “Invent a radical new
solution”, you may be disappointed!
Assessed – All proposed risk treatments must work! The “risk-effectiveness” of a treatment
is best determined by making a “post-treatment risk assessment”. This assesses the level of
residual risk assuming effective implementation of the treatment, including secondary risks
of course. The situation after implementing the risk treatment must be better than before!
Agreed – The consensus and commitment of relevant stakeholders should be obtained
before agreeing treatments, especially if the proposed treatment might affect a part of the
project in which they have an interest.
Allocated and Accepted – Each risk treatment should be owned by a single person (and
accepted by them) to ensure a single point of responsibility and accountability for
implementing the treatment. Allocating risk treatments requires careful delegation,
including provision of the necessary resources and support to allow effective action to be
taken.
Lastly, in order to reduce risk in all areas, individual operators and tourism destinations as well, need
to shift their attention to mitigating risk through ‘best practice’ initiatives such as having written
policies and procedures, staff training, signage, visitor and customer briefings, and monitoring of
industry standards (Department of Industry, Tourism & Resources, 2002). Even if particular risks do
not traditionally occur very often, reducing risk through ‘best practice’ initiatives is essential in
today’s business environment (Wilks & Davis, 2003).
5.6 Step 6 Monitor and Review Risk
In the succeeding paragraphs SkillMaker (2013) explained the importance, purpose and process of
risk monitoring:
Risk monitoring is the process which tracks and evaluates the levels of risk in an organization. As well
as monitoring the risk itself, the discipline tracks and evaluates the effectiveness of risk management
strategies. The findings which are produced by risk monitoring processes can be used to help to
create new strategies and update older strategies which may have proved to be ineffective
The purpose of risk monitoring is to keep track of the risks that occur and the effectiveness of the
responses which are implemented by an organization. Monitoring can help to ascertain whether
proper policies were followed, whether new risks can now be identified or whether previous
assumptions to do with these risks are still valid. Monitoring is vital because risk is not static
Risk monitoring is important because it helps to highlight whether strategies are effective or not.
Risk monitoring can impact upon the management of organizational risk because it can lead to the
identification of new risks. Strategies may also need to be changed or updated depending on the
findings of risk monitoring strategies.
In order to perform risk monitoring, risk must be identified and evaluated. Once a risk action plan
has been created, a timeline should also be created to ensure that check-ups are done in a timely
fashion. In order to monitor the implementation of actions, tick boxes may be used, to show that
each step of the process has been followed. Notes should be kept at every stage of the
implementation and action process, so that these can be analyzed and referred to during the
monitoring phase of the process.
6. Sources of Hazards and Risks
Hazard is defined as a potentially damaging physical event, phenomenon or human activity that may
cause the loss of life or injury, property damage, social and economic disruption or environmental
degradation. Risk on the other hand is the probability of harmful consequences, or expected losses
resulting from interactions between natural or human-induced hazards and vulnerable conditions.
Granger (2000) divided the hazard phenomena into four groups, on the basis of their origin (Table 4).
The speed with which an organization resumes or continues full business operations;
The degree to which business recovers to pre-crisis levels, and
The amount of crisis-resistance added since the crisis. That is, how the lessons learned have
been incorporated into ongoing preparation and preparedness to avoid future problems.
Assignment 4
Kindly retrieve and read the article written by Dr. Peter E. Tarlow entitled Best practices in tourism
security, risk management and crisis recovery
https://www.eturbonews.com/156200/best-practices-tourism-security-risk-management-
crisis-recovery/
Write an essay that will answer the following questions:
What other agencies would be responsible for crime affecting tourism? How would business
owner bring this problem to the attention of the responsible agencies? Should such issues be
addressed at local, regional or national level –or all three?
5. Final Assignment
In a narrative prepare a risk management plan taking into consideration the following points:
1. In the internet choose an actual tourism destination, tourism related facility, sports
related programs or activities (i.e., quick service restaurant, dine-in restaurant, hostel,
bed and breakfast facility, 5 star hotel, motel, playground, amusement park, swimming
pool, fitness center, sports field) in which to conduct this particular assignment.
2. Virtually inspect the area and identify at least 2 hazards that can cause potential risk (i.e.,
a swimming pool without depth markers or proper fencing, a fitness center with
damaged equipment, hotel without fire safety system, restaurants’ kitchens with slippery
floor)
3. Take a take at least one photograph/image of each potential risk.
4. For each of the two potential risks:
a. Describe the potential risk. Describe the type of injury and lawsuit (i.e.,
negligence for failing to maintain equipment, for failing to warn, for failing to
meet local codes, etc.) that may result from the risk
c. Classify and evaluate the potential risk/injury according to severity and frequency
d. Describe how you would treat the potential risk (i.e., signage, supervision,
warnings, maintain and inspect equipment, eliminate, etc.)
e. Identify how you would implement their plan (staff training, printed guidelines,
create or modify policies, etc.)
5. Provide supporting information that could be used to evaluate the applicable standard of
care (i.e., similar case law examples; statues/codes; rules of a sport; the program's own
policies or rules; standards/guidelines/position stands from governing bodies and
professional associations, community standards, etc.), if a hypothetical injury/death did
occur as a result of the risk they identified
8. References
Department of Industry Tourism and Resources. (2002). The 10 Year Plan for Tourism. A Discussion
Paper. Canberra: Department of Industry Tourism and Resources
Granger, K. 2000. An information infrastructure for disaster management in Pacific island countries
Australian, Journal of Emergency Management. p.25
Hillson, D. 2003. Grade A Risk Responses (available online) https://risk-doctor.com/wp-
content/uploads/2020/06/03-Grade-A-risk-responses.pdf
Robertson, D., Kean I. and Moore S. (2006). Introduction to Risk Management in Tourism –
Instructor’s Guide. Singapore: Asia-Pacific Economic Cooperation
SkillMaker, 2013. Risk monitoring. https://www.skillmaker.edu.au/risk-monitoring/
Tourism Western Australia (2014). An Introduction to Risk Management for Event Holders in
Australia. Australia: Western Australian Tourism Commission
Wilks, J. and Davis R. (2000). Risk management for scuba diving operators on Australia’s Great
Barrier Reef. Tourism Management
Wilks, J. and Davis R. (2003). International tourists and recreational injuries. Plaintiff, 59, 8-14.
Wilks, J. and Moore (2006). Tourism Risk Management – An Authoritative Guide to Managing Crises
in Tourism. Singapore: Asia-Pacific Economic Cooperation