![]() ![]() Failing to adhere to these standards may result in suspension of operating privileges, fines, or even imprisonment. They are required to use appropriately licensed drivers, submit to commercial vehicle inspections, and insure their vehicles as required. For example, companies providing public transportation (such as passenger transport in a bus) have clearly defined requirements as set out by their local motor vehicle branch in government. Some risk management initiatives are easier than others they are required by law and enforced by government agencies. Individuals, companies, societies, communities, cities, regions, and even governments can follow the process in order to protect themselves from risks, which may range from company-specific risks such as disruption of revenue to significant international risks such as climate change and civil disturbances. Risk management can be undertaken at any scale. Enhances your ability to access comprehensive and cost-effective insurance.Reduces the likelihood of an unwanted and unplanned event.The Canadian Tourism Commission (2003a) suggests that risk management: On a larger scale, practising effective risk management can be seen as an important business skill. Figure 11.2 All eyes of the media could be on a business if it has not effectively managed risk. By practising this twofold approach, operators demonstrate that they are are prioritizing the health and safety of individuals, while still taking steps to protect the operational sustainability of their company. Protecting business operations includes protecting against damage to property, damage to reputation, and any financial impacts occurring from litigation (Centre for Curriculum, Transfer, and Technology, 2003a). Keeping guests and employees safe is a moral and ethical responsibility of operators and includes avoiding both emotional and physical harm. ![]() There are two main reasons for tourism operators to practise risk management: to avoid injury to guests and employees, and to protect their business operations from financial or physical ruin. Consequently, it is helpful to think of risk management as being a process of determining the exposure to risk, and then initiating action to either minimize or eliminate the risk (Enterprise Risk Management, 2004). Risk management refers to the practices, policies, and procedures designed to minimize or eliminate unacceptable risks (Cloutier, 2000 CTC, 2003a Heshka & Jackson, 2011). Depending on the type of operation and the industry undertaking the risk management process, these may vary greatly. Figure 11.1 Signage indicates a risk for people wanting to fish in this stream near Waneta, BC due to turbulent flows and rapidly rising water levels. ![]() Understandably, most tourism operators are interested in avoiding these impacts to their operation, which is why risk management is needed. This could be a financial loss, damage to property, or injury to workers or guests. Risk is defined as the potential for loss or harm (Canadian Tourism Commission, 2003a). They will, however, provide a foundation for working in the tourism industry, and for further study. Please note that the advice and definitions provided in this chapter are general, and should not be relied on in the case of legal action. Examples are provided that apply to principles of risk management for tourism and hospitality operations. Insurance and occupational health and safety are also discussed. We’ll review theoretical risk concepts and practical risk management applications while exploring applicable areas of statute, tort, and contract law. ![]() This chapter examines the concepts of risk management and legal liability in tourism and hospitality. Demonstrate a working knowledge of occupational health and safety in tourism.Appraise the statutory requirements for a tourism or hospitality operator as required in BC.Describe the components of a valid contract under Canadian contract law.Identify the four elements of a negligent action.Identify potential liabilities and develop mitigation strategies to minimize the impact of these.Apply the four steps of a risk management process to a tourism operation.Define the concepts of risk and risk management. ![]()
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