Week-3-RISMGT (1) (1)

TOURISM AND HOSPITALITY MANAGEMENT
1st Semester
A.Y. 2024 - 2025
Course Title: : Risk Management as Applied to Safety, Security and Sanitation
Course Code: RISMGT
Course Description: The student will develop knowledge, skills and values on the basic
principles of personal hygiene food sanitation as applied in tourism and hospitality industry. Topics
include the following compliance with workplace hygiene procedure, establishment and
maintenance of a safe and secure workplace implementation on effectively of occupational health
and safety procedures and performing basic first aid procedures.
Coverage: PRELIM / Week 3
Topic/s:
• Risk Evaluation
Learning Objectives:
• Describe the principles of risk evaluation.
• Summarize the factors to consider in risk analysis.
• Discuss the importance of risk evaluation to risk assessment.
To do list/Activities:
1. Reading and Discussions
A. Risk Evaluation
2. Oral Recitation
3. Perform the set of activities;
4. Library/Online Research.
KEY WORDS:
Risk evaluation - is a process that is used to compare risk analysis results with risk criteria in
order to determine whether or not a specified level of risk is acceptable or tolerable.
Risk evaluation matrix - is a management tool which accurately assess business exposure,
based on the frequency and severity of identified potential risks.
TOPIC 1: Risk Assessment and Risk Evaluation
The purpose of risk evaluation is to support decisions. Risk evaluation involves comparing
the results of the risk analysis with the established risk criteria to determine where additional
action is required. This can lead to a decision to:
• do nothing further;
• consider risk treatment options;
• undertake further analysis to better understand the risk;
• maintain existing controls; and
• reconsider objectives.
The outcome of risk evaluation should be recorded, communicated, and then validated at
appropriate levels of the organization.
Risk evaluation, to simply put, is what is acceptable and what needs to be treated. For
each tourism destination and their national government, decisions about which risks are
acceptable and which are not, need to be made against the background of social, economic, and
political priorities. It follows then that risk shall be treated accordingly, Risk treatment involves
identifying the range of options available to operators and destinations, making plans, and acting
upon them. A useful way to visualize this process is through the Risk Evaluation Matrix.
TOPIC 2: Risk Evaluation Matrix
Risk evaluation matrix containing four management response options according to the
level of identified risk which include risk retention, risk transfer risk reduction, and risk avoidance.
Page 1
Wilks and Davis (2000) defined the level of identified risk as follows:
Risk retention is where both the frequency and severity of risk is low, risk is often retain.
This is a form of self-insurance, whereby the business operator assumes and accepts a certain
level of losses. Retention is either passive (risks are retained by business operator without the
knowledge that they are occurring), or active (where risk is identified and a decision is made to
retain and pay for any losses from the business operator's own resources).
Risk transfer is where the frequency of risk potential is low, but the severity of a potential
incident is high, the most common and traditional approach to risk management is transferring
responsibility to other parties.
Risk reduction is where the severity of a potential risk remains low, but the overall
frequency of risk is increasing business operators need to consider ways of reducing their
exposure.
Risk avoidance is where frequency and severity of risk potential are both high, business
operators should consider cancelling a program or activity.
ASSIGNMENT / ACTIVITY
Essay Test
1. Why is there a need to evaluate a risk associated with a tourism attraction or activity?
2. What examples can be given for risk retention, risk transfer, risk reduction, and risk
avoidance as applied to a tourism destination?
Reference:
A. Books:
B. Benigno Glenn R. Ricaforte, Ph.D., Rmicro, CGSP Author Reil G. Cruz, Ph.D Coordinator
– Risk Management as applied to safety, security, and sanitation (REX Book Store)
Page 2

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TOURISM AND HOSPITALITY MANAGEMENT

Course Title: : Risk Management as Applied to Safety, Security and Sanitation

Course Code: RISMGT

Coverage: PRELIM / Week 3

TOPIC 1: Risk Assessment and Risk Evaluation

TOPIC 2: Risk Evaluation Matrix

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