ARELLANO UNIVERSITY
SCHOOL OF HOSPITALITY &
TOURISM MANAGEMENT
THC 2 - Risk Management
as Applied to Safety,
Security & Sanitation
LESSON 1:
RISK MANAGEMENT
CONCEPTS & PRINCIPLES
Prof. Mich P. Angustia
5:00 - 8:00 PM
Learning Objectives:
• Define terminologies relating to
safety, security and sanitation;
• Differentiate Risk vs. Hazard;
• Discuss concepts and principles in
risk management;
• Discuss the general principles of risk
management; and
• Identify sources of Risks
Risk Defined:
• It 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. (UNWTO)
• The 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 (www.business dictionary.com)
Source: MARANANAN, JOVID et.al. (2023). Risk Management
as Applied to Safety Security & Sanitation
YEUNG, MYLENE A. (2019). Risk Management with HACCP
Risk Defined:
• Risk provides opportunities while exposing us to
outcomes that we may not desire.
• 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.
Source: MARANANAN, JOVID et.al. (2023). Risk Management
as Applied to Safety Security & Sanitation
YEUNG, MYLENE A. (2019). Risk Management with HACCP
Examples of Risks:
Food Handling
• Food handling is one issue that must be adequate
addressed whenever someone prepares food for the
customers. The danger of food poisoning due to the
contamination of food is high if precaution is not followed.
Collecting Information
• It is an inevitable practice in both tourism and hospitality
businesses to get the necessary information about their
guests and clients for security reasons
Source: MARANANAN, JOVID et.al. (2023). Risk Management
as Applied to Safety Security & Sanitation
YEUNG, MYLENE A. (2019). Risk Management with HACCP
Hospitality and tourism
are businesses.
• has a probability of threat or damage
(The weather as of the time of entering an agreement with clientele may be
entirely different from the actual day of the event.)
coronavirus as a pandemic has resulted to business losses in
the industries of aviation, tourism, and hospitality
Source: MARANANAN, JOVID et.al. (2023). Risk Management
as Applied to Safety Security & Sanitation
YEUNG, MYLENE A. (2019). Risk Management with HACCP
Hospitality and tourism
are businesses.
• future uncertainty about deviation from
expected earnings or expected outcome
(Risk measures the uncertainty that an investor is willing to take to realize a
gain from an investment )
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.
Source: MARANANAN, JOVID et.al. (2023). Risk Management
as Applied to Safety Security & Sanitation
YEUNG, MYLENE A. (2019). Risk Management with HACCP
Examples:
Transportation
Travel
Sari-sari store
Source: MARANANAN, JOVID et.al. (2023). Risk Management
as Applied to Safety Security & Sanitation
YEUNG, MYLENE A. (2019). Risk Management with HACCP
Risks vs. Hazards
• Hazard pertains to any source of potential
damage, harm or adverse health effects on
something or someone. While Risk is the
chance or probability that a person will be
harmed or experience an adverse health effect
if exposed to hazard. (Canadian Center for
Occupational Health and Safety)
Source: MARANANAN, JOVID et.al. (2023). Risk Management
as Applied to Safety Security & Sanitation
YEUNG, MYLENE A. (2019). Risk Management with HACCP
Source: MARANANAN, JOVID et.al. (2023). Risk Management
as Applied to Safety Security & Sanitation
YEUNG, MYLENE A. (2019). Risk Management with HACCP
long-term exposure accidentally spilling
to chemicals water on the floor
Source: MARANANAN, JOVID et.al. (2023). Risk Management
as Applied to Safety Security & Sanitation
YEUNG, MYLENE A. (2019). Risk Management with HACCP
A hazard may remain the same even if
the risk is diminished
Source: MARANANAN, JOVID et.al. (2023). Risk Management
as Applied to Safety Security & Sanitation
YEUNG, MYLENE A. (2019). Risk Management with HACCP
Source: https://www.youtube.com/watch?v=Sera-ColoWk
Industry-related examples:
Event Organizing
• Guest performers are considered hazard
• The unruly people are also considered a hazard
• The overwhelming attendance of guests
• Terrorist attack and robbery
Food Preparation
• The people preparing lack training, knowledge and skills
• The risk of food contamination
• Food poisoning
• The supplier of the ingredients is also a factor of hazard
Source: MARANANAN, JOVID et.al. (2023). Risk Management
as Applied to Safety Security & Sanitation
YEUNG, MYLENE A. (2019). Risk Management with HACCP
RISK MANAGEMENT
• Coordinated and economical
application of resources to maximize,
monitor, and control the probability of
unfortunate events (ISO 31000 and
Hubbard, 2009)
• Risk management, follows a systematic
approach to mitigating, if not
eradicating entirely the risks.
• Close coordination with the key people is
essential
Source: MARANANAN, JOVID et.al. (2023). Risk Management
as Applied to Safety Security & Sanitation
YEUNG, MYLENE A. (2019). Risk Management with HACCP
Sources of Risks
Financial market
Accidents
uncertainty
Threats from failure of Natural happenings or
project disasters
Attack that is deliberate
Legal liabilities
from an adversary
Uncertainty or
Credit risk
unpredictable root causes
QUIZ #1: (1 whole sheet of paper)
I. Choose from the box. (1-5)
1. It refers to any source of potential
damage, harm or adverse health effects
on something or someone.
2. It is defined as the identification,
evaluation, and prioritization of risks.
3. This provides opportunities while
exposing us to outcomes that we may
not desire.
4. It is something that may cause harm.
5. It involves identifying potential problems
before they occur so that risk-handling
activities may be planned
QUIZ #1: (1 whole sheet of paper)
II. Write Y if the statement is correct and N if incorrect.
• The danger of food poisoning due to the contamination of food
is low if the necessary precaution based on standards will not
be followed.
• The unruly people are not considered a hazard as they are not
likely to cause chaos to the whole event process.
• Guest performers are considered hazard as they may cause
commotion and stampede because of the uncontrollable
crowds.
• As a manager, it is not a part of your job to avoid threat.
• Risk management is about the safety of the guests only.
QUIZ #1: (1 whole sheet of paper)
III. Matching type (20 pts.)
HAZARDS RISKS
Skin disease Property loss stroke
knife Slips/falls Low morale
Shock lifting trips burns
Extension cord Oil spill
Back injury
fire
storm cuts Heat wave
Wet floor Screaming supervisor Electricity
QUIZ #1: (1 whole sheet of paper)
III. Essay (10 pts.)
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 it.
• 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.
QUIZ #1: (1 whole sheet of paper)
III. Matching type (20 pts.)
HAZARDS RISKS
knife cuts
Extension cord trips
lifting Back injury
fire burns
storm Property loss
Wet floor Slips/falls
Screaming supervisor Low morale
Heat wave stroke
Oil spill Skin disease
Electricity Shock
Sources of Risks
Financial market
Accidents
uncertainty
Threats from failure of Natural happenings or
project disasters
Attack that is deliberate
Legal liabilities
from an adversary
Uncertainty or
Credit risk
unpredictable root causes
