RISK MANAGEMENT

• Risk, according to the World Tourism Organization, is a situation that exposes someone or something to danger, harm, or loss
• Risk can be related to physical safety, property loss, financial business risks, and more
• Risk management is a planned process through which organizations manage active crises
• Risk management involves identifying, assessing, and controlling threats to an organization's capital and earnings
• A robust risk management plan helps a company establish procedures to avoid potential threats, minimize their impact, and cope with the results
• Benefits of risk management include creating a safe work environment, increasing business operation stability, decreasing legal liability, protecting people and assets, and establishing insurance needs
• Common risks facing businesses in the hospitality and tourism sector include food-borne illnesses, alcohol-fueled behavior, transportation accidents, on-premises security, and cyber security
• Risk management approaches include risk avoidance, reduction, sharing, and retaining
• Risk management strategies and processes involve establishing context, risk identification, analysis, assessment, mitigation, monitoring, communication, and consultation
• Risk management limitations include the need for large amounts of data, lack of analysis expertise and time, false sense of stability, illusion of control, failure to see the big picture, and immaturity
• The risk management standards have been developed by organizations like NIST and ISO to help identify threats, assess vulnerabilities, and determine risks
• Principles recommended by ISO for overall risk management process include creating value, being an integral part of the organization, factoring into decision-making, addressing uncertainty, being systematic, based on best available information, tailored to the project, considering human factors, transparent, adaptable, and continuously monitored and improved
• General principles of food safety risk management include following a structured approach, prioritizing human health, transparency in decisions and practices, including risk assessment policy, maintaining scientific integrity, accounting for uncertainty, clear communication with consumers, and being a continuous process