Analytical Essay: Risk Management in Tourism, Events, Hospitality

This essay provides a comprehensive analysis of risk management within the tourism, events, and hospitality industries. It delves into the legal dimensions, emphasizing the importance of duty of care, breach of duty, and adherence to regulations, while also addressing corporate governance and its impact on risk mitigation. The ethical dimension is explored, highlighting the significance of ethical decision-making, procedural justice, and data privacy, alongside the issues of awareness, vague standards, and accountability. Furthermore, the essay examines the sustainability dimension, focusing on aligning risk management strategies with environmental and CSR policies, and ensuring the protection of ecosystems. It addresses the issues of uncertainty, short-term versus long-term risk perspectives, and resource utilization within the context of government regulations. The conclusion synthesizes the key points, underscoring the importance of integrating legal, ethical, and sustainable practices for effective risk management within these dynamic sectors.

Management of
tourism event and
hospitality
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Table of Contents
INTRODUCTION...........................................................................................................................3
Legal dimension of risk management..........................................................................................3
Ethical dimension of risk management......................................................................................4
Sustainability dimension of risk management.............................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8
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INTRODUCTION
Risk management is consider as a world of risk management, finance that refers to the
practice of recognising the potential risks that can evaluate potential risks within advance as well
as taking some of the steps that can decrease the risk. A risk can be anything that influences the
timeline of the project, budget or performance (Arcodia, and et.al., 2020). Risk are consider as
potentialities as if they becomes realistic that can be classified as problem and must be solved.
Here the risk management also focuses on several things on several types of projects. On the
risk management strategies, large scale projects that involves detailed planning regarding each
and every step to assures strategies within a place if problem is arisen. For every organisation it
is necessary to follow concept of risk management so that risk are identified and mitigated in
effective way. If risk are not mitigated properly then it directly impact on their growth and
performance. However, in tourism and event industry is expanded at global level and provide
variety of services to customers. Also, there occur many types of risk which can affect on safety
of people as well. Thus, it is important for this sector to follow concept of risk management in it
(Chandrasekera. and Hebert, 2019).
Here, in essay legal aspect of risk management that is breach of duty of care that is
required to maintain safety and duty of care. Besides that issues which occur in it is regulation.
In similar way, ethical aspect is that standard model i e. decision needs to be made in ethical
way. Another is model of procedural justice i.e individual right must be respected and
maintained. The issues in it are lack of awareness, vague standards, etc. the sustainable aspect is
align with environmental and CSR policy. the issues are uncertainty and short term risks
(Webster, and Ivanov, 2020).
Legal dimension of risk management
There are various legal aspect which needs to be taken into consideration in tourism industry.
This is because it enables in identifying risk and taking effective measures to mitigate its impact.
There are some legal aspect of risk management which needs to be considered. It is duty of care
which state that people safety is most important. Then another is breach of duty of care that is
required to maintain safety of venue. As tourism and event industry operate at global level so
they have to ensure customer safety (Dogru, Mody. and Leonardi, 2018). For that there are
several laws which needs to be adhered in it. this is because it ensures safety of people in it.
however, laws are made by local authoritis in different countries. Everyone is subject to law, and
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its purpose is protecting interest of people. In risk management legal dimension is necessary as
it protect right of people involved in event. For instance- in various tourism destination laws are
to be adhered and on basis of that tourism activity is designed. First of all it is necessary for
tourism companies to provide safe environment to people. There should not be no harm involved
in tourism activities. Now second is that individual are liable for their action it means if they
cause harm they must pay compensation to victim. Besides that, in duty of care they should not
cause harm to others and follow all relevant standards (Webster, and Ivanov, 2020).
Furthermore, it is evaluated that there are some legal issues which impact on risk management.
The issues needs to be identified so that appropriate measures are taken. Also, issues are
related to laws and regulation in tourism industry. Thus, legal issue is regulations followed
within country. The tourism and event industry operate at global level thus risk management is
done as per laws. Besides, protocols and procedure is followed as well. Sometimes, laws
restricts to follow specific procedure which does not match with organisation policy. Due to that
risk management is impacted (Jobin, , Ienca, and Vayena, 2019). Additionally, another legal
issue in it is corporate governance which impact on it. in tourism and event industry corporate
governance in managing risk vary. The laws defined by management does not comply with
regulations. In this there will be no compliance in it which can be challenge in it. therefore, to
mitigate risk no procedure is followed and it led to affect on overall risk management. For
instance – when risk related to dispute is to be solved then legal compliance including structure
is to be followed. So, it provide framework of process by which risk is management is done. But
it restrict industry in doing so. In this way risk management is impacted due to the issue of
regulation (Ivanov, and Webster, 2019).
Ethical dimension of risk management
It has been stated that organisation needs to work in ethical way. So similarly, they need to
ensure that risk occurred in it are mitigated in ethical way as well. The tourism and event
industry must consider it. however, there is ethical dimension of risk management as well. In
this there are some ethical aspect as well that is taken in it. first is the standard model in it
which state that decision needs to be made in ethical way. This means that it consequence of
decision is not considered in it . (Murphy, Gretzel. and Pesonen, 2019). hence, it may harm
society or individual ethics and values. Moreover, another aspect in this is model of procedural
justice. Here, individual right must be respected and maintained. The decision should not be
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taken that prohibit individual right regarding risk to accept.. so, rights of individual must not be
exposed by taking decision in unfair manner. So, it require to follow a certain procedure in it to
ensure that decision is taken in fair manner. Apart from that, it is moral duty of tourism
organisation to maintain privacy of data of customers. The must not share it with government
or any third party. In case of sharing of data there needs to be informed consent of customers in
it. Besides that, tourism industry must mitigate risk in professional manner through ethical
conduct and decision (Holden, , 2019).
In tourism and event industry there may occurs some ethical issues which can impact on risk
management.. these issues may hamper image of company or decision making. due to that, risk
might not be mitigated in effective way. The issue in it is lack of awareness to identify ethical
issues in mitigating risk. Thus, here decision is taken in unfair way and it leads to rise is issue
of ethical working. Moreover, due to that proper measures are not taken and risk is not
mitigated. This highly impact on risk management. Alongside, another issue is vague standards
to be followed in decision making. due to that no procedure is followed in decision making.
hence, sometimes decision taken are not ethical and it shows unethical behaviour of tourism
company towards solving risk. Besides that, it is evaluated that issue in it is lack of ownership
of unethical behaviour. At times, in tourism sector there is no accountability defined of manager
or director in it. therefore, they act in unethical way and are not accountable to society or
customers. So, it highly impact on risk management as no responsibility is taken in it. for
example- in tourism and event industry risk may occur of maintaining privacy of customer info
but government may misuse that info. therefore, in this ethical decision is taken to provide info
to gov. It will impact on risk management (Mariani, and Baggio, 2020).
Therefore, these are issues which needs to solved so that risk management is done in
proper way and all ethical aspect are followed in it.
Sustainability dimension of risk management
In addition to legal and ethical aspect there are some dimension of sustainability as well in risk
management. In this risk must be mitigated in sustainable way so that sustainability is
maintained and environment is protected as well. Thus, there are various aspect of
sustainability in risk management. In this first is that business strategy of mitigating risk needs
to be aligned with environmental and CSR policy. This means that risk needs to be mitigated
without causing any harm to environment. The tourism activity or business practices must be
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cause harm to destination ecosystem (Mair, and Weber, 2019). Also, environment needs to be
preserved while mitigating risk. In addition, all measures taken in that needs to be within policy
or protocols followed in it. apart from it, another aspect of sustainability is that no practice must
be followed which leads to creating major consequences on other environment hazards. So, as
tourism and event are done on venues and other destination thus all risk needs to be identified
and mitigated.. the industry must ensured that those places are not prone to any natural hazard or
any happening of event does not led to some serious consequence. In addition, sustainability is
itself aspect in risk management. It means that during reducing risk industry must maintain
sustainability in that. This will allow in promoting tourism and ensuring surroundings or
community is not harmed through it (Winter, 2020).
But there are certain sustainability issues which can impact on risk management. So, these
issues needs to be determined so that it is mitigated. The main issue here is uncertainty. There
may occur negative outcomes of managing risk in sustainability. Due to that, it becomes
difficult to manage risk in effective way. Also, as tourism destination the environment is
uncertain so there may occur any hazard in it. thus, it is not easy to predict how sustainability is
to be maintained (Pioquinto, and et.al., 2019). Also, another issue is dynamic between short and
long term sustainability risk is vague so, company may go for long term risk rather than short
term. Thus, in order to do so tourism industry has to identify long term risks in it. with that they
will not be able to balance sustainability in risk management. This will led to only short term
profitability in it. alongside, it lacks material in it means measure taken are vague. Henceforth,
there is no optimal utilisation of resources in it which can be useful in ensuring sustainability in
it. there are some government regulation as well which can cause issue in this. It may restricts
industry to maintain sustainability in that particular region. here, for example- at a tourist
destination there occurrence of natural hazard and tourism is not able to maintain sustainability
in that due to regulations. So, in this case due to issue of regulations sustainability is not
maintained and risk is not mitigated. The issue directly impact on risk management (Nusair, and
et.al., 2019).
CONCLUSION
From the above it had been concluded that various legal aspect enables in identifying risk
to mitigate its impact. As tourism laws are made by local governments in different countries
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tourism industry to provide tourists with a satisfactory experience some legal issues needs to be
identified operate at global level as per laws. Another legal issue in it is corporate governance
which impact on it. in tourism and event industry corporate governance in managing risk vary.
individual right must be respected and maintained.In case of sharing of data there needs to be
informed through ethical conduct and decision. another issue is vague standards shows unethical
behaviour of tourism company towards solving risk. Environment needs to be preserved
no practice must be followed to creating major consequences on other environment hazards
Due to that sustainability issues is uncertainty it becomes difficult to manage risk in effective
way. Henceforth, there is no optimal utilisation of resources in it which can be useful in ensuring
sustainability in it.
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REFERENCES
Books and journals
Arcodia, C., and et.al., 2020. USING JOB ADVERTISEMENTS TO ADVANCE EVENT
MANAGEMENT RESEARCH. Event Management.
Chandrasekera, T. and Hebert, P., 2019. Emergency preparedness in the hospitality industry in
Sri Lanka. International Journal of Disaster Resilience in the Built Environment.
directions. International Journal of Event and Festival Management.
Dogru, T., Mody, M. and Leonardi, C., 2018. Blockchain technology & its implications for the
Hospitality Industry. Boston University.
García, M.R. and da Silva, P.F., 2018. Acquisition of Language and Intercultural Competences
in Tourism and Hospitality Studies through Active Experimentation in Second
Life. Teaching English with Technology, 18(2), pp.69-92.
Holden, A., 2019. Environmental ethics for tourism-the state of the art. Tourism Review.
Ivanov, S. and Webster, C. eds., 2019. Robots, artificial intelligence and service automation in
travel, tourism and hospitality. Emerald Publishing Limited.
Jobin, A., Ienca, M. and Vayena, E., 2019. The global landscape of AI ethics guidelines. Nature
Machine Intelligence, 1(9), pp.389-399.
Koc, E., 2019. Service failures and recovery in hospitality and tourism: A review of literature
and recommendations for future research. Journal of Hospitality Marketing &
Management, 28(5), pp.513-537.
Mair, J. and Weber, K., 2019. Event and festival research: a review and research
Mariani, M. and Baggio, R., 2020. The relevance of mixed methods for network analysis in
tourism and hospitality research. International Journal of Contemporary Hospitality
Management.
Murphy, J., Gretzel, U. and Pesonen, J., 2019. Marketing robot services in hospitality and
tourism: the role of anthropomorphism. Journal of Travel & Tourism Marketing, 36(7),
pp.784-795.
Nusair, K., and et.al., 2019. A bibliometric analysis of social media in hospitality and tourism
research. International Journal of Contemporary Hospitality Management.
Pioquinto, B. and et.al., 2019. Portfolio-based Analysis and Competencies of Hospitality
Management Students in Events Management: A Basis for Syllabus Enrichment. Asian
Journal of Multidisciplinary Studies, 2(2), pp.134-139.
Webster, C. and Ivanov, S., 2020. Robots in travel, tourism and hospitality: Key findings from a
global study. Zangador.
Winter, C., 2020. A review of animal ethics in tourism: Launching the annals of tourism research
curated collection on animal ethics in tourism. Annals of Tourism Research, 84,
p.102989.
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