THC 2

On the very outset of this learning tool, I would like to extend my sincere
and heartfelt obligation towards all the personages who have helped me in the
endeavor. Without their active guidance, help, cooperation, and encouragement I
would made headway in this task.
I am ineffably indebted to MR. RAZ LAPE, MMHM for conscientious

guidance and encouragement to accomplish this task from the very beginning up
to the end.
I am extremely thankful and pay gratitude to my very own dean Dr.

LEONITO MORDENO, Ph.D. for his valuable guidance and support for the
completion of this assignment.
I extend my gratitude to the rest of the faculties of College of Hospitality

Management for the unended support and unfeigned advices.
I also acknowledge with a deep sense of reverence, my gratitude towards

my beautiful mom Mrs. Carmela Caluyan and also my handsome brother Jomar
Caluyan, who has always supported me morally as well as mentally.
I am greatly thankful to my friend Bai Alaida who gave her time and
directly helped me to finish this assignment of mine.
And last but not the least my gratitude goes to our Almighty God ALLAH
for the guidance and protection throughout my entire task.
Any omission on this brief acknowledgement does not mean lack of

gratitude.
Thanking You!
The Compiler
THC 2- Risk Management as Applied to Safety, Security & Sanitation 1

Mr. Juhamer B.
Caluyan
RULES AND REGULATIONS
1. Student must be on time to join the online class meeting at least 10-15 minutes
before the given scheduled time.
2. Student must wear the prescribed dress code in any of the following:
a. School uniform
b. Chef’s jacket (Hospitality students)
c. P.E. t-shirt
d. White t-shirt or polo shirt
3. Student must have a copy of learning module during online class discussion.
4. Student must provide notebook and ballpen for note taking.
5. As the online class started, student must observe the following:
a. Must find a place that is noise free.
b. Must look for a strong signal to avoid intermittent internet connection.
c. Must be on your well-mannered position. Lying, slouching, or sleeping are
highly discouraged.
d. Refrain from unnecessary exercises as the online class progresses.
e. Eating during online class is not allowed
6. Student must mute speaker or microphone as the discussion started, may
activate it unless being told to do so by the course facilitator.
7. Uttering or speaking indecent words are not permitted. Respect everyone.
8. If you have questions/queries regarding with the discussion just press the hands-
up emoticon to acknowledge your questions.

Course Outline
Course Name THC 2 – RISK MANAGEMENT AS APPLIED TO
SAFETY, SECURITY & SANITATION
Course Credit 3 Units
Pre-requisite None
Course Hour / Week 3 Hours
Risk Management Concepts and Principles
 Risk Defined
 Risk vs. Hazard
 Activity #1
Sources of Risks
 Uncertainty in Financial Markets;
 Threats from Project Failures;
WEEK 1 – 3  Legal Liabilities;
 Credit Risk;
 Accident;
 Natural Causes and Disasters;
 Deliberate attack from an adversary; or
Events of Uncertain or Unpredictable Root-
cause
Common Injuries in the Hospitality Industry
 Slip-and-Fall Injuries;
 Musculoskeletal Injuries;
 Skin Reactions;
 Respiratory Illnesses;
 Security;
 Food Poisoning;
WEEK 4 – 6  Elevator and Escalator Accidents;
Accidents in the Tourism Industry
 Accidents Due to Fortuitous or Acts of God
 Transportation Accidents
 Accidents Due to Activities

 Natural Causes and Disaster
 Deliberate Attack from an Adversary
WEEK 7 – 9
Events of Uncertain or Unpredictable Root-
Cause
 Strategies to Manage Threats
 How to Implement the Strategies to Manage
 Uncertainties (Method)
Risk Management Principles
The Methods Identifying Risks
 Objectives-Based Risk Identification
 Scenario-Based Risk Identification
 Taxonomy-Based Risk Identification
 Common-risk Checking
 Risk Charting
WEEK 10 – 12  Risk Assessment
 Risk Option
 Risk Avoidance
 Risk Reduction
 Sharing
Risk Management Plan

 Risk and Consequences
 Probability
 Impact
WEEK 13 – 15
 Priority
 Mitigation Response
 Implementation
Risk Management for Hospitality Industry
 Guest Behavior
 Best Practice for Hotel Customer Service
Recovery
WEEK 16 – 18
 Staff
 Liability of Hotel in a Personal Injury Claim
 Duties of the Hotel to the Guests
 Branding

THC 2 - RISK MANAGEMENT AS APPLIED TO SAFETY,
SECURITY & SANITATION
COURSE DESCRIPTION
This course studies knowledge, skills, and values on the basic principles of
personal hygiene, food safety and sanitation as applied in tourism and hospitality
industry. Topics include the following; compliance with workplace hygiene procedures;
establishment and maintenance of a safe and secure workplace; implementation of
occupational health and safety procedures and performing basic First-Aid procedures.
GENERAL COURSE PURPOSE

This course is designed to introduce the students to the value
of safety, security and sanitation principles and sound practices. Using the Hazard
Analysis Critical Control Point (HACCP) as guidelines, the students are oriented
towards the proper handling of food from preparation, production to service.
SPECIFIC GOALS FOR THE COURSE OUTCOMES

At the end of the semester, the student will be able to:
1. Practice proper food safety and sanitation as the basis for preventing
foodborne illness in food service industry;
2. Apply purchasing and receiving procedures that enhance the
protection of food.
3. Implement different accident management plan and practices in the
workplace.
4. Demonstrate understanding on Occupational Health and Safety (OHS)
hazards in the workplace II.
5. Identify and follow workplace procedures for hazard identification and
risk control II.
6. Demonstrate security awareness practices

Risk Management Concept & Principles
Desired Learning Objectives:
At the end of the lesson, the students will be able to:
1. Identify what is risk.
2. Differentiate risk and hazard.
3. Explain the distinction between the risk and hazard using the hospitality and
tourism industry-related activities related framework.
4. Discuss the sources of risks.
5. Enumerate the other causes of risks.
6. Identify the two types of events in risk management.
RISK DEFINED
There is no better way of starting the discussions in this book except through
defining risk. Risk provides opportunities while exposing us to outcomes that we may
not desire. It is the coupling of risk and reward that lies at the core of the risk definition,
and the innovations that have been generated in response make risk central to the
study of not just finance but all of the business. The definition of risk implies awareness
that risk is something foreseeable in every kind of business even in the tourism and
hospitality world. The exposure to something that we do not desire should not be a
barrier for us to execute what is being expected and demanded from us. Our knowledge
of risk should be considered as a better opportunity for us to plan and mitigate its
adverse effect in our undertakings.
Risk, according to UNWTO, is a situation that exposes someone or something to

danger, harm or loss. Risk can be a physical safety matter, a risk of property loss, a
financial business risk, and more. From the moment a person engages himself in the
business of tourism and hospitality, whether a sole proprietorship, partnership, or
corporation, the risk immediately attaches.
Examples:

1. Food handling is one issue that must
be adequately addressed whenever someone
prepares food for the customers. The danger of
food poisoning due to the contamination of food is
high if the necessary precaution based on
standards will not be followed. The government
has provided regulations that must be complied
with by any business ventures to make sure that
danger or harm is mitigated. Food sanitation permit
is a mandatory requirement for businesses in the
food industry.
2. It is an inevitable practice in both tourism and hospitality businesses to

get the necessary information about their guests and clientele for
security reasons, not only on the part of the guests but also on the part
of the management as well. The giving and obtaining information per
se is considered risk in itself that must be safeguarded accordingly.
The business dictionary has defined risk as a probability of threat of damage,

injury, liability, or any other adverse occurrence that is caused by external or internal
vulnerabilities, and that may be avoided through preemptive action). The same has
stressed out the definition of risk as applied to the food industry: the possibility that due
to a particular hazard in food, there will be an adverse effect on absolute magnitude.
Tourism like hospitality is a trade or business. It may sometimes reach its desired
outcome, but the possibility of not realizing it should not be a set aside. Engaging in a
business like tourism and hospitality has a probability of threat of damage as there are
events beyond the contemplation of man. The weather as of the time of entering an
agreement with clientele may be entirely different from the actual day of the event.
Those actual occurrences must have a preemptive action.
In the point of view of the economics, risk implies future uncertainty about
deviation from expected earnings or expected outcomes. Risk measures the uncertainty
that an investor is willing to take to realize a gain from an investment. The very reason
why people engage themselves in business is to realize gains is not an easy thing
because of the hazards and risks attaching to it. There is a need to plan on time and
think of the best possible means to address the risks and hazards barring the full
implementation of the desired plan of the business.
RISK VS. HAZARD

According to workSMARK, (n.d.) a hazard is something that can cause harm
(e.g. A chemical, electricity, ladders, etc.) while a risk is a chance that any hazard will
cause harm to somebody.
Event organizing is effective in boosting the economy of both industries tourism,

and hospitality. One cannot accomplish it in just a wink of an eye. It must undergo a
tedious study and planning because some risks and hazards are attached to it. Guest
performers are considered hazard as they may cause commotion and stampede
because of the unruly people. The unruly people are also considered a hazard as they
can cause chaos to the whole event process. The overwhelming attendance of the
guests might also be considered hazard as it can cause traffic congestion and noise
nuisance to nearby establishments. On the other hand, the risk that those hazards can
cause damaged to property and injuries to people are very high should the
management ignore the essence of risk management in the design of their event. There
is also a hazard in the food preparation in the hotel industry. The people preparing
might be factor of hazard as well as the supplier of the ingredients as their knowledge,
training, and skills are needed to make sure that the food are adequately prepared.
Thus, the food poisoning is avoided.
RISK MANAGEMENT
Risk management, as defined in ISO 31000, is the identification, evaluation, and

prioritization of risks. It is followed by coordinated and economical application of
resources to minimize, monitor, and control the probability of unfortunate events
(Hubbard, 2009) to achieve the desired output. Risk management follows the
systematic approach to mitigating, if not eradicating entirely the risks. Close
coordination with the key people in an organization is something essential to the control
of the unfortunate events.
Risk can come from different sources like the following:
1. Uncertainty in financial markets;

2. Threats from project failures ( at any phase in design, development, production,
or sustainment life-cycles);
3. Legal liabilities;
4. Credit risk;
5. Accidents;
6. Natural causes and disasters;
7. Deliberate attack from an adversary; or
8. Events of uncertain or unpredictable root-cause
Uncertainty in the Financial Market
One consideration that a manager should take into in the conduct of his/her
business is the uncertainty in the financial markets. Managers must be vigilant enough
in determining those uncertainties that could give more impact in the entirely of his
business. According to Former US Defense Secretary Donald Rumsfeld ‘’We know
there are known unknowns; that is to say we know there are some things we do not
know. However, there are also unknown unknowns - the ones we do not know, we do
not know.’’ This statement of Rumsfeld is a reminder to everyone that the awareness on
the distinction between certainty and uncertainty could be helpful in many
circumstances like the reduction of so much confidence for the investors and the
protection of wealth for an extended period.
In the paper of Nick Bloom, an economist, he argued that uncertainty can hit
different groups in different ways. He gave oil-price spike as an example, contending
that it may give a good impact for the producers of the oil, but not for the airlines.
Threats from Project Failures
Another source of risk that could hamper the success of the tourism and
hospitality business is the threat usually embedded in the project. As the manager, you
cannot avoid the threat; you have to deal with it. The success of Public-Private
Partnership is being measured by avoiding the project failure or minimizing their
consequences.
Based on Taylor Jr. (2014), the compelling business development requires taking
on calculated risk. Throughout the whole process of project development, the managers
could direct their teams on the right actions utilizing establishing the distinction between
risks and its effects. Consequently, late projects and its failure to meet the quality
guidelines could produce an adverse impression on the new members.
Legal Liabilities in Tourism and Hospitality Industry

Risk management is a tool to avoid injury to guests and employees and to
protect their business operations from financial or physical inconvenience. Risk
management in tourism and hospitality industry is two way-process: (1) The safety of
the guests and employees, which includes avoidance to emotional and physical harm is
a moral and ethical responsibility of the operators; (2) Protection to business operations
which includes protection against damage to property persons and property and future
litigation. Risk management is like hitting two birds with one stone: safety of the guests
and employees plus the avoidance of suits and other causes of actions.
Credit Risk
Is the potential that the bank borrower or counterparty will fail to meet its
obligations following agreed terms. The goal of credit risk management is to maximize a
bank’s risk-adjusted rate of return by maintaining credit risk exposure within acceptable
parameters. Banks need to manage the credit risk inherent in the entire portfolio as well
as the risk in individual credits or transactions and also consider the relationships
between credit risk and other risks.
Accidents
Risks and accidents are sometimes being used interchangeably, but they are
different, though they complement each other. Accidents are reactive while risks are
preventive.
Then following are some of the common injuries in the hospitality

industry
1. Slip-and-fall injuries;
2. Musculoskeletal injuries;
3. Skin reactions.
4. Respiratory illnesses
5. Security-related accidents
6. Food poisoning
7. Elevator and escalator accidents
Slip-and-fall Injuries
Hotel workers are at risk of falling and slipping because of the nature of their
work which requires them to move quickly and faster as they can to accomplish their
time the soonest possible.

Musculoskeletal Injuries
Working in the hotel requires a lot of strengths and agility because of the
requirement of their work to bend and lift that could cause muscular pains and injuries.
Skin Reactions
The skin reactions may be caused by the exposure of the hotel workers to a
variety of chemicals on a daily basis, like strong cleaning agents and need early medical
attention to avoid severe complications.
Respiratory Illnesses
There is possibility that the hotel employees usually assigned to the Housekeeping
Department could acquire respiratory illness due to their exposure to infectious
diseases carried through bodily fluids like vomit, feces, and blood.
Security-related Accidents
Under the law, the innkeepers, tavern keepers, and proprietors of establishments
are liable for the presence of the following elements:
1. The innkeeper, tavern keepers, and proprietor of the establishments or his

employee violated a municipal ordinance or some general or police
regulation;
2. A crime is committed in such inn, tavern or establishment;
3. The person criminally liable is insolvent.
In the second paragraph of Article 102, when all of the following elements are
present, the innkeeper is subsidiary liable:
1. The guests have notified in advance the innkeeper or the person representing
him of the deposit of their goods within the inn.
2. The guests have followed the direction of the innkeeper or his representative
concerning the care and vigilance of their goods.
3. Robbery or theft took such goods of the guests lodging in therein.
Food Poisoning
Food poisoning is typically being experienced in the restaurants and similar

establishments even in the luxury hotels and resorts. An illness caused by eating
contaminated food.

Elevator and Escalator Accidents
The hotel owners are responsible for making sure that the elevators and
escalators in their buildings are well-maintained and that any safety concerns that arise
during maintenance checks are quickly addressed for the safety if their guests as well
as their employees.
Accidents in the Tourism Industry
There are many tourism-related activities which are susceptible to harm and
damage people and property. Examples will be presented as per their category:
1. Accidents due to fortuitous events or acts of God
1.1 Earthquakes 1.5 Erosion

1.2 Volcanic Eruption 1.6 Fire
1.3 Flood 1.7 Storm
1.4 Landslide 1.8 Typhoon
2. Transportation accidents
2.1 Air 2.3 Land

2.2 Water
3. Accidents due to Activities
3.1 Pool accidents 3.3 Drowning

3.2 Animal bites or attacks 3.4 Electrocution
Natural Causes and Disaster
The natural disasters may be categorized into three broad groups:
1. Caused by movements of the earth – may include earthquakes, volcanic

eruptions, and tsunamis.
2. Disasters related to weather – may include hurricanes, tornadoes, el niño, la
niña, extreme heat, and freezing water.
3. Floods, mudslides, landslides, and famine – are considered as magnitudes of
the occurrence of the extreme weather events and results of unforeseen
conditions.
Deliberate Attack from an Adversary

According to article of Sinai ‘’In response to such terrorist threats, the hotel
industry around the world has beefed up its security departments, implementing
a range of security measures to protect guests at their properties, ranging from
armed guards to concrete barriers and metal detectors.’’
Terrorism, according to Albu (2016), has become of the more active and
threatening calamities that affect the international community.
Events of Uncertain or Unpredictable Root-cause
The strategies to manage risk typically include transferring the risk to

another party, avoiding the risk, reducing the adverse effect or probability of the
risk, or even accepting some or all of the potential or actual consequences of a
particular risk. Certain aspects of many of the risk management standards have
come under criticism for having no measurable improvement on risk, whether the
confidence in estimates and decisions seem to increase.
Two Types of Events in Risk Management
1. Negative events or risk;

2. Positive events or opportunity
POSITIVE RISK NEGATIVE RISK
An opportunity to the project A threat to the project
You shouldn't avoid it but enhance and get Avoid it and eliminate
the most out of it
Brings a positive outcome and results in Brings a negative outcome and may result
project's success in project's failure

RISK MANAGEMENT PLAN
At the end of the lesson, the students will be able to:
1. Identify the strategies that can help to manage threats.

2. Discuss how to implement the strategies to manage uncertainties.
3. Enumerate the risk management principle.
4. State the steps on risk management process as per ISO 31000
5. Provide different scenarios to be considered in the determination of applicable
risk management techniques.
6. Create risk management plan.
The context of the event is a determinant of appropriate risk management

technique.
Strategies to Manage Threats (Uncertainties with Negative Consequences)
The following are some of the strategies that can be of help

to manage threats:
1. Avoid the threat;

2. Reduction of the adverse effect or probability of the threats;
3. Transfer of all or part of the threat to another party;
4. Retaining some or all of the potential or actual consequences of a
particular threat, and the opposite for opportunities (uncertain future states
with benefits).

How to Implement the Strategies to Manage Uncertainties
(Method)
The different strategies of managing uncertainties can be dealt with using

the following elements in order:
1. Threat identification or characterization;

2. Assessment of the vulnerability of critical assets to specific threats;
3. Risk determination;
4. Identification of the techniques to reduce those risks;
5. Prioritization of the measures
Risk Management Principles
The following are some of the risk management principles enunciated by

the International Organization for Standardization:
1. Risk management should create a value wherein the resources expended

to mitigate risk should be less than the consequences of inaction;
2. It should be an integral part of the organizational processes;
3. The risk management should become part of the decision-making
processes;
4. It should explicitly address uncertainty and assumptions;
5. It should be placed in systematic and structured process;
6. The best available information should be the bases of risk management;
7. Risk management should be tolerable;
8. It should take human factors into account;
9. It should be transparent and visible;
10. The dynamism, interactivity, and responsiveness to change must be
evident on the risk management;
11. Risk management should be capable of continual improvement and
enhancement;
12. There is a need for a continuous and periodic re-assessment of the risk
management.

Steps on Risk Management Process as per ISO 31000
The following are the steps for the implementation of the risk management
process based on ISO 31000:
1. Context establishment;
2. Identification of the potential risk;
3. Risk assessment;
4. Creation of risk options;
5. Identification of potential risk management treatments;
6. Make a risk management plan;
7. Execute the plan;
Context Establishment
Establishing the context of risk management involves the following;
a. Risk identification in a selected domain of interest;

b. Planning the rest of the whole risk management process;
c. Plotting out the:
 Scope of risk management
 Identity and objectives stakeholders
 Bases of risk evaluation and constraints.
d. The framing of risk management activity and agenda for identification;
e. Analysis of risk involved in the process;
f. Giving of a solution of risks using available technological, human and
organizational resources.
Identification of the potential risks
The following factors could be considered as determinants in choosing a

method of identifying risks: culture, industry practice, and compliance. The
methods of identifying risks follow:
a. Objectives-based risk identification;

b. Scenario-based risk identification;
c. Taxonomy-based risk identification;
d. Common-risk checking;
e. Risk charting;

Objectives - based risk identification. The mission, vision, and goals of any
organization illustrate where the organization should be in a particular point of time.
Scenario – based risk identification. Different scenarios must be considered in the

determination of applicable risk management. Scenarios are the alternatives of the
objective or an analysis. The happening which may cause unexpected scenario
alternative may be considered as a risk.
Taxonomy – based risk identification. According to Sei.cmu.edu.(retrieved,2012),

taxonomy – based risk identification is the breakdown of possible risk resources.
Common – risk checking. In several industries, lists with known risks are available.
Each risk in the list can be checked for application to a particular situation.
Risk charting – (Common Vulnerability and Exposures list, 2012). This method is
the combination of all the approaches or techniques discussed above which
enumerates the resources at risk, threats to those resources modifying factors which
may increase or decrease the risk and consequences it wishes to avoid.
Risk Assessment
It comes after the risks have been pointed out. It is a stage wherein the
severity of the impact of the said risk is being weighted to make the most
intelligent decisions for the full implementation of the risk management plan.
There are two components for quantitative risk management:
1. The magnitudes of loss (L);

2. The probability (p) of the occurrence of the risk.
Risk Options
The following are some of the options to mitigate risks:
1. Project a novel business procedure with sufficient built-in risk control and
containment measures from the start.
2. Conduct a periodic reassessment of risks that are acceptable in ongoing
processes as a regular feature of business operations and modify mitigation
measures.
3. Handover risks to an internal agency like an insurance company.
4. Avoid risks altogether (e.g., by closing down a particular high-risk business
area).
5. Potential risk treatments
The techniques in managing risk may be categorized into the following:
Risk Avoidance
Risk avoidance is the elimination of hazards,

activities, and exposures that can negatively affect an organization’s assets.
Risk Reduction
Risk reduction is the optimization or mitigation of the hazards in any form

of business. Based on this technique, risks are given and cannot be eradicated
as it is part of the business, especially in the tourism and hospitality industry.
Managers are expected to think of a possible solution on how to address the
mitigation of the adverse effect of the risk.
Sharing
Sharing is a technique in risk management wherein the management is

transferring the burden of risk to another persons or juridical entity. In this
concept, the risk manager would be asking a company to take charge of the
covered damage if the expected peril would happen.
Retention
Retention is a risk management technique in which a company facing

a risk or risks decides to absorb or accept any and all potential loss rather than
transfer that risk to an insurer or other party.
Risk Management Plan
The mitigation of risk is dependent on the countermeasures by the

management which must be planned on time. There must be corresponding plan
for every adverse occurrences or event. Dcosta (2015) suggested the inclusion
of the following in the formulation of the matrix to prioritize risk. It must be noted
that the risk plan for smaller projects can be as simple as a risk management
matrix, while complex projects require more through risk analysis and planning.
1. Risk and Consequences. It usually identifies the risks associated with

the project and the probability that it could affect the schedules, the
resourcing, or the budget;
2. Probability. This could be a percentage or a number;
3. Impact. The determination of the impact or the variant effect of the risk
to the business is necessary as well as in the matrix.
4. Priority. The column would merely state which among the identified
risks should be attended first because of its severity of offer or impact.
5. Mitigation response. This is the overview of the mitigation steps for
the reduction or elimination.
Implementation
The challenge indeed of effective risk management is on the actual
implementation of the plan. There are cases that people involved in the
preparations can no longer execute what has planned on time. Another thing to
consider during the implementation of the risk management process is the ability
of the risk manager to ascertain the necessary insurance for the given situation.
There must be a proper accounting and evident good faith on the part of the
insured to make sure that the insurance company involved would give you the
necessary assistance based on the insurance coverage.
Review and evaluation of the plan

One can never perfect the initial risk management plans. Expect the
glitches and be open to modification and change of plan. Consider the practice,
experience, and the actual loss results when you do your modification.
Name: Section

Course/Year Date
EXERCISES NO. 1
Instruction:
Read the following cases very carefully. Answer the pertinent questions
briefly and concisely.
You and your friends were asked by your eldest sibling to organize her wedding somewhere
in Calatagan, Batangas. They would like to have their marriage, celebrated on August 30, the exact
date where they became lovers officially. The would-be- couple would like to have a beach wedding
with only close relatives and friends as their guests.
The two would like your group to comment on the following as they have some reservations
about itr.
 Hazards if the wedding will be celebrated on August 30;

 Hazards if it will be a beach wedding;
 Consequences if the wedding will be attended only by close friends and relatives.
Aside from these, your group was also asked by the would-be couple to design a risk
management plan for them.
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Name: Section
Course/Year Date
EXERCISES NO. 2
Instruction:
Read the following cases very carefully. Answer the pertinent questions
briefly and concisely.
One of the tests being given to a prospective employee/manager is an

interview. The panellists would like to test your knowledge about managing an
amusement park. They would you to give your own opinion on the following
hazards that might affect their business.
- Putting more CCCTV cameras instead of hiring more security personnel;

- Hiring contractual employees as the peak season is about to end;
- Children accompanied by their parents who would like to experience
riding in an extreme ride;
- Food poisoning.
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Name: Section
Course/Year Date
EXERCISES NO. 3
Instruction:
Read carefully the situations given below then determine the hazards and
risks involved. Give a chance to become one of the participants of each situation,
what suggestions can you give to mitigate the risks, if not entirely avoid it?
Situation 1
The Philippines is known for celebrating different festivities for their patron saints and as symbols of
religious beliefs. We have Santacruzan which is being held in most of our country, Panagbenga Festival in
Baguio, Sinulog in Cebu, and the River Festival in Bocaue, Bulacan.
An annual celebration of the Bocaue River Festival is being held every first Sunday of July in Bocaue,
Bulacan in respect to the Holy Cross, the Mahal na Poon ng Krus sa Waawa, which was found in the river in
1850. During the festival, the replica of the holy cross is placed at the top of the decorated pagoda on a
barge. Small boats accompanying it surround the pagoda.
On July 02, 1993, a fatal accident occurred during the Bocaue River Festival which involved the
sinking of pagoda causing the drowning of more than two hundred devotees. An estimated eight hundred to
one thousand devotees boarder the pagoda before it sank in the middle of the Bocaue River between the
barangays Bunlo and Bambang.
According to the report, a skyrocket flying towards the pagoda caused the many people to react
and forced them to move to one side of the barge. Many people on board panicked upon hearing the noise
of crackling timber. The pagoda collapsed and eventually sank to the riverbed. Based on the different
testimonies, the power generator of the pagoda was still operational when it sank. Many people were
believed to be electrocuted as well.
HAZARDS RISKS

Name: Section
Course/Year Date
EXERCISES NO. 4
Situation 2
A bus carrying twenty-five people (twenty tourist, four Filipinos, and a tour guide) going to
Rizal Park, Manila on August 23 was hijacked by Rolando Medoza, a disgruntled former PNP
officer. Mendoza had demanded a fair hearing to defend himself as he was claiming to have been
unfairly dismissed from his service.
The whole negotiation process was broadcast live on television. It broke down dramatically
into stand-off for ten hours. The police decided to arrest the brother of the former police officer, thus
forcing the latter to open fire. The bus driver took it a chance to escape, and he declared “everyone
is dead” before he was taken away by the policemen. Mendoza, among with other eight hostages
was killed, and several others were injured after the gun battle for ninety minutes.
The investigators concluded that Philippine officials poorly handled the situation which
caused the death of eight hostages and injuries to some others. The Manila Police District (MPD)
was widely criticized as incompetent. This crisis led to the Hong Kong Government’s issuance of
back travel alert for the Philippines.
HAZARDS RISKS

Name: Section
Course/Year Date
EXERCISES NO. 5
Situation 3
Resorts World Manila is an entertainment complex located in Pasay, Metro Manila,

Philippines. Dozens of people were killed on the said entertainment complex o June 02, 2017
when confused gunman set fire to casino tables and slot machines around midnight causing a
stampede. Casino chips were stolen from the venue when the gunman moved to the storage
room. The gunman killed himself after the confrontation with the arriving police. All the deaths
and injuries were results of the initial stampede and smoke suffocation from the fire, and not
directly from the gunman.
The Resorts World Manila management had admitted lapse of security in one of the
house probes as some security personnel were not in the posting area when the attacker entered
the casino. They countered, however, through their President that they were able to execute
emergency protocol which led to the evacuation of thousands of people from the establishment.
It was pointed out that there were thirteen fire exits on the second floor of the casino, nine of
which are in the gaming area. People have decided to stay put although the outside area is
already burning on the belief that it would be more dangerously to go out as they thought there
were many gunmen.
It was discovered during one of the probes that the credentials and pieces of training of
the security chief of the Resorts World Manila were questionable. It must be noted that before
the crisis, the PAGCOR had issued a security advisory to its licensee casinos to provide additional
precautionary measures in the wake of recent terrorist incidents and the martial law declaration
in Mindanao.
HAZARDS RISKS

Name: Section
Course/Year Date
EXERCISES NO. 6
SITUATION 4
On December 20, 1987, MV Dona Paz, a Philippine-registered passenger ferry sank after it
had collided with MT Vector, an oil tanker. It was considered as the deadliest peacetime maritime
disaster in the Philippine history as it had an estimated death toll of 4,386 people and only 24
survivors.
The following were considered as essential pieces of the story based on reports and
testimonies of the survivors:
1. The MV Dona Paz was then en route to Manila from Leyte Island. It was overcrowded, with
at least two thousand passengers not listed on the records. It was also discovered that the
ship carried no radio and the lifejackets were locked away.
2. The officials of MV Dona Paz, however,, contended that it was Vector that should have been
blamed. According to them, Vector was unseaworthy and operating without a license,
lookout or qualified master.
3. Based on the testimonies of the survivors, the weather at sea that night was clear, but the
sea choppy.
4. Most of the passengers were sleeping when the Dona Paz collided with MT Vector, an oil
tanker en route from Bataan to Masbate. Vector was carrying 1,050,000 litres (8,800 US bbl)
of gasoline and other petroleum products owned by Caltex Philippines.
5. Vector’s cargo ignited and spread the fire onto Dona Paz. It caused panic on the vessel.
6. The flames spread rapidly throughout the ship, and that the sea all around the ship itself was
on fire.
7. Minutes after the collision, lights on board went out. No life vests to be found on Dona Paz
and all the crewmen were at lost as they were all in panic. None of the crew attempted to
pacify the passengers as they were so confused as well.
8. The lifejacket lockers had been locked based on the investigation.
9. The survivors were forced to jump off the ship and swim among charred bodies in flaming
waters, with some
THC 2- Risk Management using suitcases
as Applied as makeshift
to Safety, Security &flotation devices.
Sanitation 25
10. Dona Paz sank within two hours after the collision.
11. Vector sank four hours after that.
12. Both the Dona Paz and Vector sank in the shark-infested Tablas Strait.
HAZARDS RISKS

Risk Management Applicable to Tourism Industry
Desired learning Objectives:
At the end of the chapter, the students will be able to:
1. Discuss the essential guidelines to manage the risks confronting the

tourism sector.
2. Enumerate the different concerns of risk identification.
3. List some terminologies that hospitality and tourism students need to
know concerning political risk.
4. Discuss the factors in the identification of the nature of impending
risks.
The following are some of the essential guidelines to

manage the risks that confronting the tourism sector:
1. Risks identification
2. Determination or creation of a management plan to address risks that
could affect the tourism business
3. Collaboration with the stakeholders
4. Provide training for the staff
5. Test the plan
6. Provide transparent and honest crisis communication
7. The revival of the business after a crisis
8. Reposition of the business after a crisis

1. RISK IDENTIFICATION
The process of determining and listing potential risks that could potentially
prevent the program, enterprise, or investment form achieving its objectives. It
includes documenting and communicating concern.
The risk identification could concern any of the following:
 Natural hazards
 Civil or political hazards
 Technological hazards
 Biological hazards
a. Natural Hazard
A natural hazard is an extreme event that occurs

naturally and causes harm to humans – or to other
things that we care about, though usually, the focus in
on humans. A natural hazard escalates into a natural
disaster when an extreme event caused harm in
significant amounts and overwhelms the capability of
people to cope and respond.
b. Civil or Political Hazard
The hazards being confronted by investors,

corporations, and governments brought by the political
decisions may be considered as political hazards. Civil
hazards, on the other hand, are hazards caused by
circumstances in the society that could vastly affect the
society as a whole.
The following are some terminologies that a hospitality and tourism

students need to know concerning political risk.
1. Trade Barriers - are regulations or policies that would restrict

international trade like customs, tariffs, quotas, and other.
2. Taxes - are the bread and the butter of the government.

3. Legislation - is the process of giving effect to proposal or policy for
everybody’s observation.
4. Administration - is the ability to manage plus the political will are
essentials to the proper administration of any agencies for the effective
and efficient service to the people.
5. Political Instability - could vastly affect the tourism of a country.
c. Technological Hazards
Technology could be treated as a hazard

because it is an effect of the globalization of production
an increase of industrialization, and a certain level of
risk accidents connected with production, processes,
transportation, and waste-managements.
d. Biological Hazards
It pertains to biological substances that stance a

danger to the health of the living organism, chiefly human.
Biological Hazard is also known as biohazards. It may
include substances prejudicial to other animals. It may also
include samples of microorganism, virus or toxin that can
affect the health of human. Biohazards are risk factor that could directly affect the
tourism industry.
Factors in the Identification of the Nature of Implementing Risks
The degree or veracity of the impending risks could be determined by

taking into consideration the following reason for the happening of the risk;
1. The frequency of the occurrence of the risk;

2. Duration of the risk;
3. Speed of onset;
4. Scope and impact;
5. Potentialities to destroy;
6. Criteria for determining the necessity of risk treatment;
7. Criteria which is acceptable and tolerable;
8. Whether the combinations of the negative and positive risks will
be considered;
9. How the combinations of risks will be considered;

Two Types of Essential Risk:
1. Inherent Risk - refers to the exposure arising from a specific

risk before an action is to be made by a risk manager.
2. Residual Risk – is the exposure arising from a specific risk
after risk manager has made any, and in case such action has
proven useful.
The following issues must be addressed well in the risk

identification:
1. The cause of the event;

2. Areas of impact;
3. Enablers
4. Events;
5. Potential consequences
2. DETERMINATION AND CREATION OF RISK MANAGEMENT PLAN

It contains an analysis of the potential risks together with the possible
impact (high and low) and strategies to mitigate the derailment of the project if
the problems would arise.
There are some sources which classified the plan and strategies into;
a. Preventive – is design to lessen the possibility of risk impact before

the risk becomes realized.
b. Contingency – is design to address the issue of risk at the time of the
happening of the event.
References which categorized the plan or strategies into four:
1. Risk avoidance – refers to the complete elimination of risk by merely

avoiding the activities with attaching potential risks.
2. Risk reduction – refers to the reduction of risk level through
minimizing either likelihood or consequences of a specific risk level
through the implementation of precautionary measures, risk controls or
treatments.
3. Risk transfer – There is a risk transfer when the burden is being
shifted from one party to another, from individuals to another individual,
from individuals to an insurance company or from insurers to
reinsurers.
4. Risk retention – is a company’s decision to take responsibility for a
particular risk it faces, as opposed to transferring the risk over to an
insurance company.
3. COLLABORATION WITH THE STAKEHOLDERS

Defined as anybody who can affect or be affected by the strategy or
project of an organization .all the preventive and contingency plan of the
management to address risks would be considered as an exercise of futility if the
stakeholders affected will not be involved. The do’s and don’ts, the manner in
which the plan is to be executed, and all the matters pertinent to the plan
necessitate the involvement of the stakeholders; otherwise would be useless.
Classification of Stakeholders:
1. Internal stakeholders – those who have a direct relationship with the

company such as employee, owners, and investors.
2. External stakeholders – those who have no direct relationship but
could be affected by the actions of the management.
4. PROVIDE TRAINING FOR THE STAFF

It is also essential in the management of risks in the tourism and
hospitality industries to provide training for the staff for them not to be caught
unaware on the things that they have to do should the event happens. They
should be the pacifier and not the inducer of panic in the event of uncertainty.
They should save lives and not abandon their posts in case of avoidance
circumstances. The management may require the employees to undergo training
in giving first aid, booking system, or food handling.
Safety Drill in the Tourism Industry

Staff and employees in the tourism industry must necessarily be equipped
with skills and training in handling emergency cases. They should have active
participation in all the drills being initiated by their management. A safety drill is a
concept or practice of preparing people for an emergency. It is done through

simulation of the actual happening of uncertainty that may affect the business like
fire, earthquake, theft, terrorism, food poisoning, among others.
Fire drill is a way of practicing the actual evacuation system in a building

or tourism-related establishments in case of fire or another emergency. The fire
alarm would usually be activated in a building signalling the mock occurrence of
the emergency.
Lockdown drill .This practice is done in anticipation

of an intruder or criminal act within the vicinity of tourism-
related establishment or activities. To effectuate this
method, an announcement about the immediate lockdown
will be given to all. During the process, the occupants
present at the time of drill will have to go to a room and lock
all doors and window tight. Occupant must wait until the
issuance of the ‘’clear signal.’’ The situation is different if the emergency is life-
threatening. In that case, there is a need for the occupants to evacuate to
meeting zone which is away from the scene of the emergency.
Earthquake drill .This drill is used as a way of

preparation for the coming of an earthquake. Stop, drop,
and hold on used during the drill.
FIRST AID Knowledge about the way on how to

give first aid treatment is essential especially to the people working in the tourism
industry given the kind of activities that clientele or guests would
like to deal with.
The knowledge about giving of first aid could give but

not limited to the following practical results:
1. Safety awareness among all the employees could help the

industry bring down the number of accidents concerning the
activities.
2. Their knowledge about first aid could save lives as they could
give immediately attention to the incidences of grave injuries
and critical damages. The training could be of help to the
employees to acquire the necessary confidence in effectively
managing the emergency situations.

3. The employees would know the things that should be included
in their first aid kits and the different ways of addressing the
situations in an emergency.
5. TESTING THE PLAN FOR RISK MANAGEMENT

The risk management during test planning involves three essential stages,
to wit: risk identification, risk impact analysis, and risk mitigation. Risk
identification is the listing of all potential risks that might affect the full execution
of the activities pertinent to the industry of tourism. This is a collective activity
headed by the manager. Risks identified during this stage are more managerial
strategy that we have to look into at anything that might affect the project
schedule, budget, effort, infrastructure changes, and others.
Risk Analysis comes next after all the risks are listed during the collective
activity. The chance of occurrence of the risk and the amount of loss that might
come will be weighed and determined accordingly. The probability and impact of
the identified risks should be given corresponding values, to wit: high, medium,
and low. The risks that acquire high probability and impact should be given
priority followed by the others.
The Risk Impact Analysis Table
Risk Probability Impact

Registration.The determination
as to the exact number of Medium Medium
audience.
Venue. Suitability of the venue

as to the number of confirmed Low Low
audiences while the planning is
still going.
Arrangement. The stage and

physical arrangement taking High Medium
into consideration the safety of
both the performers and the
audience.

Performer’s confirmation.
Backup plan/performers if the High High
original performers breach its
obligation to the event’s
organizer.
Security. The ability of the
security to hold the bigger High Medium
crowd as compared to what is
expected.
Technical difficulties due to the

supply of electricity. High Medium
Risk Mitigation in risk-based Testing – is the process of finding solutions in

anticipation of the problems that may arise in every situation. The plan may vary based
on circumstances.
Risk Probability Impact Mitigation Plan

The number audience is essential to
the whole process of risk
management. If the probability of low
Registration. The turnouts of audiences is medium,
Medium
determination as to the there is still a chance to increase it,
exact number of Medium thus, meeting the target number of
audiences audiences. The testing team can
control the preparation and give an
immediate communication with the
parties involved.
There is a need to have a
Venue. Suitability of the contingency plan for the venue given
venue as to the number the number of expected number of
of confirmed audiences audiences; it is way beyond the
while the planning is still expected number of audiences.
High Medium
ongoing. Suitability of the ......the additional tent must be
venue as to the weather provided considering the high
condition. chances of rain based on the weather
forecast.
Arrangement. The stage There must be a barrier between the
and physical arrangement Low Low audiences and the performers
taking into consideration although it appears that the

the safety of both the
performers and the probability and impact are low.
audiences.
The team must make sure that the

performers would be the actual
Performer’s
performers on the day of the event.
Conformation. Backup
However, the team must be ready to
plan/performers if the
face the audiences in case they fail to
original performer High Medium
deliver what is due to them.
breached its obligation to
There must be a plan for the event,
the event’s organizer.
repeat performance, or refund in case
of failure to perform.
Security. The ability of

The team must also ready in dealing
the security to hold the
with the variety of audiences. Some of
bigger crowd as
High High them are unruly and cannot be
compared to what is
managed.
expected.
What is the backup plan in case of the
Technical difficulties due
inadequate supply of electricity on the
to the supply of electricity. High Medium
occasion of your event?
Natural disaster Medium High
6. PROVIDE TRANSPARENT AND HONEST CRISIS COMMUNICATION.
It has been said that communication is vital to the success of crisis management
initiatives of the tourism and hospitality industry. According to UNWTO crisis
communications is a crucial element of a good crisis management system. It helps
limit the negative impact of a crisis by addressing the information needs of all
industry stakeholders in an efficient, timely and responsible.
Risk communication may be defined as the information exchange

involving managers, consumers, and other interested parties. It is an integrated
process and procedures that (1) involve all the interested parties within the
process of risk analysis; (2) assist in the development of the credible and
transparent process of decision-making ;(3) install confidence in the risk
management decisions.
Principles of Risk Communication
Before communicating a risk, it is essential to take note of the following

considerations:
1. Who the audiences are

2. The credibility of the source of information
3. Sharing of responsibility
4. Transparency
Who are the audiences?
By knowing who the audiences are, the risk manager could decide on the kind of
language that he needs to use to convey correctly the kind of risk attendant to the
particular activity of the tourism-related business. He should use a language that is
simple and can easily be understood by the one receiving the message. The language
should not create confusion to the audiences.
The Credibility of the Sources of Information
Nowadays that fake news in proliferating in most of the media platforms people
are asked to scrutinize very well the information that they have been deriving from
somewhere before relying on it as a basis of their action. Meanwhile, risk managers are
expected as well to do something to assure the public that all the information in their
media platforms are accurate and credible.
Shared Responsibility
Keeping the people updated about specific risks is not the sole responsibility of
risk managers. Regulatory agencies of the government, both national and local, have a
responsibility of making the public awareness about risks. The media also play an
essential role in the communication process and therefore, share on this responsibility.
Transparency

Transparency in risk analysis involves the openness and availability of risk
management process for scrutiny or checking by interested parties. The public will more
likely accept the outcomes of the risk analysis process if the management exercises
transparency.
Related Reading Relevant To Crisis Communication
Crisis Communications Actions

Principle
Appoint crisis communication Designated team members by area of responsibility, and ensure regular
team meetings and communications.
Appoint spokesperson Nominate spokesperson for all media interaction.
Background material Provide comprehensive background information and materials on crisis
management team and host organization online.
Develop messages Draft outline messages in advance of a crisis, Once the crisis occurs, issue
messages through a designated spokesperson, focusing on transparency and
accuracy and avoiding speculation. Share messages with other stakeholders.
Media access Establish crisis channels of communication (e.g., hotline to media office),
frequent schedule updates and access (e.g., press conferences, releases).
Victim care Establish particular communications channel and designated a team to work
with affected individuals/families, establish procedures for providing
assistance and chain for rapid approval at the highest level.
Internal employees Activate communications system with frequent updates to employees only
communication (emails via internet, text messages).
Website/ Facebook Activate dedicated crisis website (via pre-designated webmaster), frequently
update, including a prominent link to the regular website. Post updates on the
Facebook page.
Cross-functional integration All organization in the team to be engaged in decision-making; at least daily
interface with crisis communications team.
Quantity and quality Ensure swift and accurate fact-finding channelled to crisis communications
team (through industry representatives on the ground).
Monitoring Measure media and public exposure hits and perception, survey post-crisis
including at 3, 6 and 12-month intervals, assess results and develop
recommendations for improvements.
7. The Revival of Business after the Crisis
Ringbeck & Pietsch (2013) have pointed out the role of the policymakers in
leveraging the tourism sector most effectively and turning volatility risks into
opportunities for long-term stability. There is a need for the policymakers to
identify and focus on their key competitive advantages over other countries for
them to prevail under more volatile market conditions and continue benefitting
from a vibrant tourism sector. Ringbeck & Pietsch have also emphasized the

need to monitor the shifting trends in international customer origins and profiles.
Aside from this, it would also be essential to examine existing destination
marketing and tourism development planning in the context of the challenges of a
more volatile macroeconomic environment. Established destinations need to pool
their efforts on innovations, multi-stakeholders cooperation, and flexibility of they
are to respond successfully to demand from emerging regions. Developing
destinations should consider effective short-term turnaround strategies to
strengthen their Travel & Tourism sectors and re establish their attraction for the
international traveller by focusing on long-term sector development and making
sustainability a core of destination development and marketing.
Example:

Name: Section
Course/Year Date
EXERCISES NO. 8
Instruction:
Read each number very carefully. Encircle the letter that best answer the
question being asked in each number except number 4.
1. It could escalate into natural disaster when an extreme event caused harm in
significant amounts and overwhelms the capability of people to cope and
respond.
a. Civil hazard
b. Technological hazard
c. Natural hazard
d. Political
2. The following may be considered as risk transfer except for __________.
a. Outsourcing
b. Derivatives
c. Indemnity
d. Insurance
3. It includes accidents, dangerous procedures, infrastructure deficiencies, and

specific human activities that can cause death, injury, disease, or other health
impacts, as well as jeopardize property, livelihood, and services, provoke social
or economic disorder, and cause environment damage.
a. Technological hazards
b. Natural hazards
c. Political hazards
d. Civil hazards
4. ___________ is the exposure arising from a specific risk after manager has
made any, and in case such action has proved effective.

Name: Section
Course/
Date
Year
EXERCISES NO. 9
Instruction:
Explain the following questions and attach pictures in the given box to
support your answers.
1. What are the effects of Natural Hazards in Tourism Industry? Cite examples.
PICTURE EFFECTS
2. What are the effects of Civil or Political Hazards in Tourism Industry?
PICTURE EFFECTS

3. What are the effects of Technological Hazards in Tourism Industry?
PICTURE EFFECTS
4. What are the effects of Biological Hazards in Tourism Industry?
PICTURE EFFECTS

Name: Section
Course/Year Date
EXERCISES NO. 10
Instruction: Do an extensive reading about the following significant cases:
a. Close-up forever summer concert tragedy

b. Cancellation of the ASEAN Music Festival held at Ayala Triangle Gardens in
Makati City
c. Quirino Grand Stand hostage taking drama
1. Close-up forever summer concert tragedy (summary)

________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
_______________________.
What should have been done to mitigate if not avoid the losses and damages?
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
______________.
2. Quirino Grand Stand hostages taking drama (summary)

________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
____________________________________________________________.
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
__.
3. Cancellation of the ASEAN Music Festival held at Ayala Triangle Gardens in

Makati city (summary)
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
_________.
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
______________________________________________________________.

Risk Management For Hospitality Industry

At the end of the chapter, the students will be able to:
1. Identify the four risks which the hospitality usually faces.

2. Enumerate and discuss the best practices for hotel customer service
recovery.
3. Discuss the liability of hotel in personal injury claim.
4. List the duties of the hotel to the guest.
5. Define what is branding and its various types of risk.
Risk in hospitality industry
There are risks in any industry. One of the industries that face a large amount of risk is
the hospitality industry. Managing these risks is crucial to making sure your hospitality
based business will run smoothly. This blog lists some of the major risks facing the
hospitality industry and some Advocate Tips on how to limit your exposure.
Property Risk
Businesses in the hospitality industry face a large level of property risk. There are
multiple ignition sources in hotels and restaurants. Not to mention the fact that much of
the contents are highly combustible. To reduce this risk, ensure that all smoke and fire

alarm systems are functioning and meet National Fire Prevention Association (NFPA)
requirements.
Advocate Tips –Be sure your coverage includes a replacement cost valuation and
make sure the coverage limits are regularly reviewed for adequacy. If your building and
contents are damaged, a policy that is lacking adequate coverage faces a catastrophic
loss. With enough coverage and replacement cost valuation, you should be able to
rebuild and replace the building and contents.
Premises Risk
The risk of injury on premises is very high in the hospitality industry. Due to the high
number of guests that go through your doors each day, it is essential to minimize this
exposure by taking certain precautions.
Advocate Tips –
1. It is essential to implement safety codes in hazardous areas such as stairways,
elevators, railings, and floor coverings.
2. Make sure that all exits are clearly marked.
3. Be sure to have back up lighting systems in place in the event of power outages.
Liquor Liability
Many businesses within the hospitality industry sell alcohol. You could be held liable if
someone becomes overly intoxicated and gets into an altercation or a car accident upon
leaving your establishment.
Advocate Tip –When it comes to alcohol, employees who are serving alcohol should
be trained to know when a customer has consumed too much alcohol to prevent
excessive drinking.
Automotive Liability
If your hotel or restaurant has a valet service, you increase your exposure to automotive

liability. The risk becomes even higher if you offer transportation services to and from
airports or other venues.
Advocate Tip–To lower the risk of Automotive Liability, restrict driving to qualified
employees. If you are hiring for a position that includes these types of responsibilities be
sure to review their Motor Vehicle Records as part of the interview process. Many
automotive services can be outsourced. When outsourcing, be sure to have a
contractual transfer of risk to the independent contractor providing the services for you.
Data Privacy
Would you be surprised to learn that the hospitality industry was the most breached
sector for credit card data theft in 2009? With a majority of customers utilizing credit
cards to pay for products or services, the risk of exposure is very high. Whether it is a
customer paying with a credit card, maintaining a database that includes personal
information for a loyalty club, or booking a reservation with a credit card number, there
are many opportunities for a data breach to occur.
Advocate Tip–
1. Lower your risk by staying on top of security protocols and keeping your systems up
to date. 2. Be consistent with employee training so they can help detect fraudulent
credit card use.
3. Be sure you have some type insurance in place that covers both first and third party
such as Cyber Liability or Data Breach coverage.
Infectious Diseases (Such as Legionella)
Occurring naturally in the environment, legionella can sometimes be found in portable
water systems. It can also enter a plumbing system during construction or repair.
Additionally, any mist that is produced by legionella contaminated water or ice can be
aspirated into the lungs by susceptible individuals. In the hospitality industry, shower

heads, decorative fountains, spas, faucet aerators and cooling towers all become a
source for potential exposure.
Advocate Tips – Consult with indoor air quality professionals to develop best practices
and procedures that help to control the presence of Legionella and protect the health of
your guests.
Advocate Brokerage works with a number of businesses in the hospitality
industry. We have both extensive experience and knowledge of the industry and
thus understand the type of risks unique to hotels and other hospitality related
businesses. We would love the opportunity to review your current coverage and
find out if there are potential gaps in the coverage you already have in place.
Please give us a call, for a review or to ask any questions you may have about
your current coverage.
Patterson (2015) had identified four risks which the hospitality industry
usually faces. It includes data privacy, guest’s behaviour, staff, and branding.
Data security is a primary concern of most industries primary in the hospitality
sector considering the thrust that the guests have been giving to the hotel
management from the time of check-in up to check out. Personal information of
the Guests is being given to the front desk officer up to the extent of giving their
debit or credit cards for the transaction of their payment for whatever
consumptions they will be having during the entire duration of their stay in the
hotel.
Data Privacy
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.
GUEST BEHAVIOUR

Guests may be considered as the lifeblood of the hotel industry. Without the
happy and contented guests who have been patronizing the services of the hotel
survival of the industry would be up to the lowest extent. There are however some
instances wherein the guests are becoming the source of threat to the profitability of the
hotel, instead of them being a source of profit.
People in the hospitality industry are expected to be accommodating to all the
needs and inquires of the guests to meet the much-desired customer satisfaction, even
the guest is the most difficult one to handle. However, people in the hospitality industry
like ordinary human have a different level of tolerance in dealing with people, especially
if they will be confronted with the most challenging situation of confronting guests who
would never accept excuses.
BEST PRACTICES FOR HOTEL CUSTOMER SERVICE RECOVERY
In the FCS website, the following best practices for hotel customer service
recovery were enumerated:
(1) Deal with the guest’s complaints the very moment they arise;
(2) Ensure the complaints can reach the right person;
(3) Build a full picture on guest preferences;
(4) Keep tabs on recovery service costs;
(5) In-depth analysis of services recovery efficiency
Staff
Staffing is another risk that the hospitality industry usually faces with as the
quality services that the clientele desire may only be given to them through the proper
dealings of staff at any given situation, place, and time. The hospitality industry should
look for a reliable, skilled, and friendly people (housekeepers; front desk officers;
banquet servers; cooks, and kitchen personnel, maintenance among others) who can
relied on by the guests and potential guests.
Liability of Hotel in a Personal Injury Claim
The hotel may be held liable in a lawsuit due the negligence or carelessness of
hotel employees. The liability may arise if it can be proved that the hotel management
acted negligently. The negligence must be in the form of hotel breach of duty they owed
to the guest who was injured on the premises.
DUTIES OF THE HOTEL TO THE GUESTS
Hotel is expected to exercise reasonable care in its business operation to protect
its guest.
Specifically, the hotel is expected to do but not limited to the following:

1. Inspect the hotel grounds and maintain the property in a reasonably safe
condition. It includes the reparation of dangerous conditions and taking
affirmative steps to protect guests from known or reasonably discoverable
conditions.
2. Maintain adequate lighting, a duty to keep steps dry and unobstructed, and aduty
to repair hotel defects.
3. Control insect infestation (‘’bed bugs’’).
4. Maintain proper security (security guards and cameras) to avoid theft and
assaults on guests.
5. Exercise reasonable care in hiring hotel staff.
6. Train hotel pool staff to prevent injuries to guests.
7. Maintain stairs and elevators.
8. Maintain locks on hotel rooms.
9. There is also a duty to reasonably construct hotel steps or warn guests of
unusual staircase locations. Hotel guests have won lawsuits in which a hotel has
been found liable for negligent design and construction where the staircase was
located in a long hallway, there was no warning or caution sign, and the guest’s
inability to exit the hotel resulted in injuries.
Branding
Branding is essential to the decision of the
prospective guests to avail of the services of a hotel. It is
safe to say that hotels with the perfect image could
capture the market notwithstanding the degree of the
effort of the management to market their industry.
Clientele would opt to choose five-star hotels over an
economy, although monitory consideration would also be a factor.
Pertinent to branding is the buying decisions of the customers that may also be
considered as risks with various types, to wit (Keller, D.L.(2003), p. 10).
1. Functional risk: Product performance does not

fulfil customer expectations
2. Physical risk: Product affections of the physical
well-being of the user or others
3. Financial risk: Poor price/quality ratio
4. Social risk: Others do not accept the product
5. Psychological risk: Product affections of the
user’s mental well-being
6. Time risk: The opportunity cost of alternative
seeking due to product failure
In short, a brand is the sum of all different impressions of each customer
about a company. That's how Branding works. Marketing efforts are only there
to influence them on how to feel about their product. If you come to think of it,
you can define each major brand through one word.
Name: Section
Course/Year/Section Date
EXERCISES NO. 11
Instruction: Read each item very carefully then answer briefly and concisely what is
being asked.
1. Why is it necessary to get the some personal information from the guests prior to
their admission as hotel guests? Who would benefit more from the taking
personal information from the guests, the hoteliers or the guests? Discuss.
________________________________________________________________
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_____.
2. What are the issues in the case of motel skipper in relation to risk management
and data security?
________________________________________________________________
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________________________________________________________________

________________________________________________________________
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________________________________________________________________
__________________________________________________________.
3. Why do you think the hotels and similar industry are prone to hacker and cyber
criminals? What is the proper remedy of the hotel management if it later on
discovered that the personal information of the current hotel guests was hacked?
________________________________________________________________
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________________________________________________________________
________________________________________________________________
________________________________________________________________
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________________________________________________________________
_______________________________________________________________.
4. Can the hotel management refuse a guests who is willing to pay but with prior
records of a habit of filing a complaint for lousy services of the hotel? Discuss.
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
_______________________________________________________________.
5. Would the hotel be held accountable to the guests despite the undertaking
executed by the latter that the hotel will not be held liable for the loss he
suffered? Why?
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
_______________________________________________________________.
6. Why is it that the buying decisions of the customers considered as risk in the
hospitality management?
________________________________________________________________
________________________________________________________________
________________________________________________________________

________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
_____.
7. If hotel branding is essential to the decision of the guests to avail of the services
of hotel, why is it the same is being considered as risk in the hospitality
management?
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
______________________________________________________________.
Name: Section
Course/Year/Section Date
EXERCISES NO. 12
1. Hotel A refused Mohammad Mehmood as their guest on account of being a

Muslim? Would you consider the act of Hotel A justifiable? Why? Will your
answer be the same if the reason for the refusal of Hotel A was based on the
resistance of Mohammad to give his personal information which is required by
the management to all their guests? Discuss.
___________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________

________________________________________________________________
________________________________________________________________
________________________________________________________________
_________________.
2. An unruly guest has been pestering the party organized by A for his parents. Is it
possible for the hotel management to send the unruly guest out of the venue?
What is the best way for the management to address the issue?
___________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
______________________________________________________________.
3. Upon cleaning the room, the housekeeper discovered fifty sachets of illegal
drugs on the bed of the guests who were temporarily out of their room for an
activity outside? What should have been done by the hotel attendant to address
the issue or risk pertinent to the fifty sachets of illegal drugs?
___________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
__________________.

BIBLIOGRAPHY
JOVID MARICAR D. MARANAN, D.B.A
Dr. Jovid Maricar D. Maranan earned her Bachelor of Science in Hotel and
Restaurant Management and Master in Business Administration degree at San
Sebastian College- Recoletos, Manila and her Doctor in Business Administration
at Colegio de San Juan Letran
MARIO H. MARANAN, D.P.a.
Dr. Mario H. Maranan earned his M.A and D.P.A degree at the Polytechnic
University of the Philippines. He is also a degree holder.
CRISTINA O. NAZARENO-CALUZA, PH.D.
Cristina Caluza took up Batchelor of Science in Major in Tourism at San

Sebastian College Specialization in Tourism and Hospitality Management in
2008 in the same school

Date: ___________
Name of the student: _________________
Year & Section: ______________________
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Date: ___________
Name of the student: _________________
Year & Section: ______________________
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____________________________________________________________.

THC 2

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THC 2

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On the very outset of this learning tool, I would like to extend my sincere

I am ineffably indebted to MR. RAZ LAPE, MMHM for conscientious

I am extremely thankful and pay gratitude to my very own dean Dr.

I extend my gratitude to the rest of the faculties of College of Hospitality

I also acknowledge with a deep sense of reverence, my gratitude towards

Any omission on this brief acknowledgement does not mean lack of

THC 2- Risk Management as Applied to Safety, Security & Sanitation 1

RULES AND REGULATIONS

THC 2- Risk Management as Applied to Safety, Security & Sanitation 2

THC 2- Risk Management as Applied to Safety, Security & Sanitation 3

Risk Management Plan

THC 2- Risk Management as Applied to Safety, Security & Sanitation 4

GENERAL COURSE PURPOSE

SPECIFIC GOALS FOR THE COURSE OUTCOMES

THC 2- Risk Management as Applied to Safety, Security & Sanitation 5

Risk, according to UNWTO, is a situation that exposes someone or something to

THC 2- Risk Management as Applied to Safety, Security & Sanitation 6

2. It is an inevitable practice in both tourism and hospitality businesses to

The business dictionary has defined risk as a probability of threat of damage,

RISK VS. HAZARD

THC 2- Risk Management as Applied to Safety, Security & Sanitation 7

Event organizing is effective in boosting the economy of both industries tourism,

Risk management, as defined in ISO 31000, is the identification, evaluation, and

Risk can come from different sources like the following:

1. Uncertainty in financial markets;

THC 2- Risk Management as Applied to Safety, Security & Sanitation 8

Uncertainty in the Financial Market

Threats from Project Failures

Legal Liabilities in Tourism and Hospitality Industry

THC 2- Risk Management as Applied to Safety, Security & Sanitation 9

Then following are some of the common injuries in the hospitality

THC 2- Risk Management as Applied to Safety, Security & Sanitation 10

1. The innkeeper, tavern keepers, and proprietor of the establishments or his

Food poisoning is typically being experienced in the restaurants and similar

THC 2- Risk Management as Applied to Safety, Security & Sanitation 11

Accidents in the Tourism Industry

1. Accidents due to fortuitous events or acts of God

1.1 Earthquakes 1.5 Erosion

2.1 Air 2.3 Land

3. Accidents due to Activities

3.1 Pool accidents 3.3 Drowning

Natural Causes and Disaster

The natural disasters may be categorized into three broad groups:

1. Caused by movements of the earth – may include earthquakes, volcanic

Deliberate Attack from an Adversary

THC 2- Risk Management as Applied to Safety, Security & Sanitation 12

Events of Uncertain or Unpredictable Root-cause

The strategies to manage risk typically include transferring the risk to

Two Types of Events in Risk Management

1. Negative events or risk;

POSITIVE RISK NEGATIVE RISK

An opportunity to the project A threat to the project

THC 2- Risk Management as Applied to Safety, Security & Sanitation 13

1. Identify the strategies that can help to manage threats.

The context of the event is a determinant of appropriate risk management

Strategies to Manage Threats (Uncertainties with Negative Consequences)

The following are some of the strategies that can be of help

1. Avoid the threat;

THC 2- Risk Management as Applied to Safety, Security & Sanitation 14

The different strategies of managing uncertainties can be dealt with using

1. Threat identification or characterization;

Risk Management Principles

The following are some of the risk management principles enunciated by