Risk Management & Crisis Planning
What is a Risk?
A risk is the chance of something adverse happening. Risk arises out of uncertainty. It is measured in terms of the likelihood of it happening and the consequences if it does happen.
What is Risk Management?
It is as much about identifying opportunities as it is about avoiding losses.
Why do you need to manage risks?
Ignoring the risks that apply to your business activities or the events you have planned could impact on:
- the health and safety of employees, customers, volunteers and participants
- your reputation, credibility and status
- public and customer confidence in your organisation
- your financial position; and
- equipment and the environment
Adopting effective risk management techniques can help you to improve safety and business performance in your organisation.
Benefits of Risk Management
There are many benefits in implementing risk management procedures. Some of these include:
- more effective strategic planning
- better cost control
- enhancing shareholder value by minimising losses and maximising opportunities
- increased knowledge and understanding of exposure to risk
a systematic, well-informed and thorough method of decision making
minimised disruptions - better utilisation of resources
- strengthening culture for continued improvement; and
- creating a best practice and quality organisation
Why is risk management important to the tourism industry?
Risk management and risk assessment has become, and will remain, a vital component of the way all businesses operate within the tourism industry. Across the tourism industry, there is a multitude of opportunities for ‘risks’ to turn into ‘disaster’ or an upheaval event.
Security concerns, natural disasters such as cyclones and storms and outbreaks of infectious diseases are just a few risks which would have a tremendous impact on the tourism industry. A detailed crisis management plan will help you to prepare for and respond to the chance of an unforseen event.
Risk management planning is particularly important in helping operators to respond and adapt to climate change. With predicted increases in storms, changes in rainfall patterns and rising temperatures, operators need to be planning how they can minimise the impacts on their business and improve their resilience.
"Fail to plan, plan to fail"
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Tools
For business and destinatin organisations seeking to understand risks and develop a plan, download a copy of Tourism Risk Management: An Authoritative Guide to Managing Crisis in Tourism. In addition, Regional Tourism Organisations can download the Regional Tourism Crisis Management Plan Template to assist in crisis planning. SmartSkills Online provides a short 10 minute tutorial ‘The legal environment’ that includes risk management. A 5 step risk management process developed by the Department of Employment and Industrial Relations provides information regarding Risk Management Resources Risk Management for Wine Tourism provides a brief summary of potential risks faced by winery operators and ways of dealing with these concerns. For further information on developing a plan visit the Queensland government’s website for Risk Management. To view the Australian standard for risk management visit Standards Australia. |
