Lesson 1

Front

What is the definition of RISK?

Back

A situation involving exposure to danger.

Front

What is the definition of HAZARD?

Back

Is a source of danger.

Front

What does the tourism risk management process involve?

Back

Identifying and analysing risks to a destination or organisation and deciding what can and should be done about them.

Front

What is the primary goal of risk management?

Back

To identify, assess, and address any financial, legal, strategic, and security risks to an organization.

Front

What are some sources of business risks?

Back

Financial uncertainty, legal liabilities, technology use, strategic management errors, accidents, and natural disasters.

Front

Why is risk management important?

Back

It protects against financial expenses, inefficiencies, reputational damage, and other potential losses.

Front

What are the root causes of risks?

Back

Both internal (such as human error or system failures) and external circumstances (such as global crises, climate change, or technological advancements).

Front

What are the benefits of risk management?

Back

Reduces financial losses, avoids reputational damage, improves strategic decision-making, enhances resilience, safety and security, business continuity, legal compliance, customer trust, cost savings, sustainability, crisis communication, and adaptation to market changes.

Front

What is Compliance/Mandatory Risk?

Back

Risks that involve government-mandated licenses and business permits.

Front

What is Hazard/Pure Risk?

Back

Risks that can prevent and deter the achievement of the company's goals, including insurable-type risks like fire, typhoon, and flood.