Step 3: ANALYSE RISK

WHAT IS RISK ANALYSIS?

Risk analysis involves combining the possible consequences on impact of an event. The purpose of
analysing risks is to develop an understanding of the risks the destination is facing. This understanding
will assist in the decision-making on which risks need to be treated and in identifying the best risk
treatment strategies to apply.

The step includes:

• analysing the likelihood and consequences of risk
• existing control measures

Identify existing control measures and assess their effectiveness in minimizing likelihood and
consequences.
Existing Control Measures
SOURCE OF RISK Existing control Effective
measures (YES OR NO)
•Sophisticated
Rip currents Equipment YES
•strategic
preparedness
Premises Security •security risk
assessment YES
•train staffs
•food handling and
Food borne illness storage procedure
•outbreak YES
investigation
Proliferation of •Urban planning
settlers •evaluation and YES
seminars
•water risk
management plan
•solid and plastic
Water pollution waste reduction YES
•monitor air and
water quality for
prevention
•conservation plan
•reuse, recycle, and
reduce waste system
Biodiversity loss •habitat restoration YES
response
•training staff system
Structures •evaluate and YES
examine materials
 Qualitative Measures of Consequences
Level Descriptor
1 Insignificant
2 Minor
3 Moderate
4 Major
5 Catastrophic
Description
•No disruption to
normal company; no
disturbance of
visitors; no financial
loss; no media or
public interest.
• Minimal disruption
to normal company;
limited or no
financial loss; no
media coverage or
public interest.
• Short- term
disruption to normal
company and service
to visitors; some
financial loss; limited
media reporting.
•Disruption to
normal company for
more than 24 hours;
Financial losses,
anger and frustration
on the part of
visitors; critical
media reports and
public criticism of
destination.
• Unable to meet
visitors requirements
and provide normal
service type and
level; serve financial
losses: critical
international media
report; mass
cancellation of
bookings.

Qualitative Risk Analysis Matrix-Level of risk

Risk Likelihood Consequences Level of risk
Rip currents A Catastrophic (5) E
Premises C Moderate (3) H
 Security
Food borne B Major (4) E
illness
Proliferation of E Insignificant (1) L
settlers
Water pollution C Moderate (3) E
Biodiversity loss D Minor (2) H
Structures C Moderate (3) E
Legend:
(Level of risk)
E-extreme risk
H-high risk
M-moderate risk
L-low risk
(Likelihood)
A-almost certain
B-likely
C-moderate
D-unlikely
E-rare

STEP 4: EVALUATE RISK

Decisions have to be made about which risks have to be treated and in what order. Decisions on risk
treatment needs and priorities must be aligned with the destination’s expectations, values and
perceptions of risk. The life of people must be the top priority. Prioritizing the identified risk using the
rating letters A- G.
RISK PRIORITY RATING TO BE TREATED
(YES OR NO)
Rip currents •Business A
•Employees YES
•Visitors
•Environment
Premises •Visitors D
Security •Business YES
•Employees
Food borne •Visitors B YES
illness •Business
Proliferation •Environment G
of settlers •Business YES
•People
Water •Business C
pollution •Visitors YES
•Employees
Biodiversity •Environment F
 loss •Visitors YES
•Business
Structures •Visitors E
•Business YES
•Employees