3201 risk management.dotx - 3201THS Managing Risk in Tourism Events and Hospitality NAME JIAFENG ZHENG STUDENT NUMBER S5105131 Word count 1837 Professor

3201 risk management.dotx - 3201THS Managing Risk in...

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3201THS Managing Risk in Tourism, Events and Hospitality NAME: JIAFENG ZHENG STUDENT NUMBER: S5105131 Word count: 1837 Professor: Truc Le
Introduction Nowadays, tourism has become one of the industries with the fastest economic growth, which not only meets the needs of the vast number of tourists, but also benefits the cause of poverty alleviation in various countries (Sofronov ,2018). However, it is also accompanied by inevitable risks. Most tourism management relies on knowledge of risk management to avoid the maximum losses. Risks come from many different places in the hospitality industry, such as financial risks that pay more fixed fees and human resource management risks need to adjust the relationship between employees. Risk management is a management process that minimizes the adverse effects of risks when risk is triggered. (Risk management, 2018) With the development of business, risk management is increasingly important in the daily operations of enterprises, so as to make decisions easily and prevent potential risks from causing losses to the company's profits. Therefore, managers pay attention to risk management in order to increase the profits of company. The main purpose of this essay is to analysis and discuss the role and importance of risk management in terms of legal, ethical and sustainability dimensions. The major focus of this article is to explore the implications of the existing problems in three dimensions of hospitality, tourism and events. This paper is divided into five parts that introduction, legal dimension of risk management, ethical dimension of risk management, sustainability dimension of risk management and conclusion. Three practical cases will illustrate the legal, ethical, and sustainability dimensions of risk management. Legal dimension of risk management Over the last few decades, the law of the hospitality and tourism industry has become one of the most noteworthy issues (Oramah, 2012). Especially the crime that fraud is common in the travel and hospitality industry, including insurance fraud and payment in the form of stolen credit cards (Drummond, 2007). For hospitality, industry
statistics show that organizations lose 5 to 6 percent of their annual revenue due to staff and visitor fraud (Baker, 1949). For example, a hotel operator with annual revenue of about $10 million may experience a loss of between $500,000 and $600,000. It is vulnerable to various forms of hacking and electronic theft, which can seriously affect their reputation and loyal customers. Legal risk management has the right risk concept, performs systematic management activities and penetrates into all aspects of the organization and processes. For the hotel industry, the establishment of available risk management can help consumers and managers to reduce losses, maintain the trust between the two sides of the relationship and interests.

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