CHAPTER 3-5 RISK

• CLASSIFICATION OF RISK

  1. SECTOR A risk that external factors independent from the entrepreneur's management could directly or indirectly influence the achievement of his or her objectives and strategies to a significant extent. Examples: Strong exposure to regulatory changes Business fragmentation Appearance of new markets.
• OPERATIONAL. risks are associated with the entrepreneur's ability to convert the strategy chosen into specific plans, by means of an effective allocation of resources.
• TECHNOLOGY This measures the entrepreneur's exposure to the technological risks derived from the need to undertake heavy investment in order to ensure the the feasibility of his or her business project within a specific period of time or the need for training the company's employees in the use of the technology.
• COMPETITORS The size, the financial and operational capacity of the agents in a sector determine the degree of rivalry in that sector and set the rules of the game that any new agent has to consider in order to operate in the marketplace; this can involve risks for the entrepreneur.
• SUPPLIERS The role played by the suppliers in the sector could generate risks for an entrepreneur due to variations in the price of raw materials, to the availability of a variety in the supply and for a continuous period of time, as well as the degree of concentration of the suppliers, which will determine the method of payment traditionally accepted in the sector.
• CUSTOMERS The customer can be a crucial focal point of risk for an entrepreneur, since they are the generators of revenues; the risk can stem from changes in their tastes and needs, from generating pressures forcing prices down or from lengthening the payment period, among other factors, in such a way that the entrepreneur's value proposal must always be customer-oriented.
• FINANCIAL The financial risks refer to the uncertainty associated with effective management and the control of finances carried out by the entrepreneur, as well as to the effects of external factors such as the availability of credit, exchange rates, movements in interest rates, etc.
• Risk Identification

  Identification should include all risks, whether or not they are under the control of the tourist destination or local government. Use various methods and tools like brainstorming, flowcharts, check lists, records, experience.
• Risk Treatment

  Identifying the range of options available to operators and destinations, making plans and acting upon them. Risk treatment strategies. Few risks remain static.
• Data Security

  is a process of protecting files, databases, and accounts on a network by adopting a set of controls, applications, and techniques that identify the relative importance of different datasets, their sensitivity, regulatory compliance requirements and then applying appropriate protections to secure those resources.
• SEC. 2. Declaration of Policy. - It is the policy of the State to protect the fundamental human right of privacy, of communication while ensuring the free flow of information to promote innovation and growth. The State recognizes the vital role of information and communications technology in nation-building and its inherent obligation to ensure that personal information in information and communications systems in the government and in the private sector are secured and protected.
• SEC. 4. Scope. - This Act applies to the processing of all types of personal information and to any natural and juridical person involved in personal information processing including those personal information controllers and processors who, although not found or established in the Philippines, use equipment that are located in the Philippines, or those who maintain an office, branch or agency in the Philippines subject to the immediately succeeding paragraph: Provided, That the requirements of Section 5 are complied with.
• 5 Common Security Issues in the Hospitality Industry

  • Unauthorized Visitors. Thanks to the nature of the industry, keeping unauthorized visitors off the premises is an ongoing challenge.
  • Antisocial Guest Behavior.
  • Employee Safety Concerns.
  • Data Privacy.
  • Theft.
• High Turnover Rate Creates More Challenges

  Having well-trained staff is invaluable for ensuring the secure collection and storage of sensitive data. However, the hospitality industry has a very high turnover rate due to the fact that it largely involves seasonal work. Employees often leave after a few months or are transferred to other locations. This makes it a challenge to maintain teams of properly trained employees. Just one untrained individual can give cybercriminals easy loopholes to gain access to sensitive customer data.
• Insider Threats

  That's another type of risk faced by companies in the hospitality sector. It involves employees selling customer data to third parties unknown to the management of their organization. Selling such data, which may include information on customer preferences and behavior, could be a very lucrative endeavor for such employees that have access to them.
• SAFETY ISSUES

  These include food safety, slips and falls, and other physical hazards.
• NATURAL DISASTERS

  Natural disasters include volatile weather events and disease epidemics, both becoming more common as the global climate warms.
• REPUTATIONAL RISK

  As consumers increasingly rely on online customer reviews, reputational risk is a key area to monitor for hospitality Unlike in other industries, hospitality businesses have no single industry standard or regulatory framework to guide risk management strategies.
• FOODBORNE ILLNESSES

  A foodborne illness is a disease transmitted to people through food. The best way to prevent this is to keep the food you serve safe. To start it essential to learn what foodborne illnesses are the challenges you will face in preventing them. The cost of a foodborne-illness outbreak can be devastating. An illness is considered an outbreak when: two or more have the same symptoms after eating the same food. An investigation is conducted by state and local regulatory authorities. The outbreak is confirmed by laboratory analysis.
• Foodborne Illness — Disease transmitted to people by food.
• Foodborne Illness Outbreak — Occurs when two or more people get the same illness after eating the same food.
• Time-Temperature Abuse — When food has stayed too long at temperature that are good for the growth of pathogens.
• Pathogens - Illness causing microorganism that are more frequently found on types of food that once were considered safe.
• NATURAL DISASTERS

  Natural disasters include volatile weather events and disease epidemics, both becoming more common as the global climate warms.
• Risk Treatment

  Identifying the range of options available to operators and destinations, making plans and acting upon them. Risk treatment strategies. Few risks remain static.
• Risk Management

  Describe the environment where the disaster may happen.

  • Assets for tourism development and community wellbeing
  • The tourism load and seasonality
  • Stakeholders
  • Legal, political, business framework that rules the destination
• RISKS FOR TOURIST

  • Environmental
  • Diseases
  • Financial
  • Socio-cultural
  • Product liability
  • Property damage
  • Security
• Primary Factor of Security Breaches: Human Error

  Businesses in the hospitality sector such as hotels, and restaurants, often have a complex ownership structure consisting of a management company which runs the business, a separate owner or group of owners, and a franchisor. These different entities may store important data in different computer systems and such information may be moved around frequently.
• How to Ensure Data Security in the Hospitality Industry

  Organizations in the hospitality sector can protect the data of their customers by implementing a number of best practices for mitigating the risks associated with data collection.
• • Encryption of credit card information This is one of the fundamental steps. It is also important to secure all electronic devices such as laptops, desktop computers, and flash drives.
• • Operating a continuous training program in cybersecurity This will help to ensure that every employee is trained and proficient with handling sensitive data securely. Organizations can also limit the insider threat by limiting access to sensitive data to trusted employees only and by implementing multi-factor authentication for users who have access to such data.
• • Adhering to relevant regulations Companies also benefit from adhering to relevant regulations such as the PCI DSS regulation which protects credit card data and the GDPR regulation.
• • Using firewalls, network monitoring, traffic filtering, and anti-malware security measures These should protect against common cybersecurity threats. Organizations could test their defenses by simulating cybersecurity attacks and making adjustments as needed.
• INNOVATION

  The fourth industrial revolution has brought about unprecedented digital connections. With them comes cybersecurity risk. The internet of things; the use of mobile applications to procure services, unlock hotel room doors and perform other tasks; artificial intelligence, and other technologies may give cybercriminals increased opportunities to access customers' personal information, payment card information, and valuables.
• CHALLENGES TO FOOD SAFETY

  Time - Pressure to work quickly can make it hard to take the time to follow food safety practices.
• Language and culture - Staff may speak a different language. This can make it difficult to communicate. Cultural differences can also influence how food handlers view food safety.
• Literacy and education - Staff often have different levels of education.
• Unapproved suppliers - Food that is received from suppliers that are not practicing food safety can cause a foodborne-illness outbreak.
• High-risk customers - These are the elderly, people with compromised immune system such as people with HIV/AIDS, undergo chemotherapy etc., children etc.
• Staff turnover - Training new staff leaves less time for food safety training.