Managing risk

Planning to manage the unthinkable

Operating with risk is a reality for any business. Risks can be generated from within a business or from external circumstances.

All tourism businesses are subject to Occupational Health and Safety legislation External link under which you have a duty of care to protect your staff and customers. It will simplify the management of a crisis situation if you have thought through the range of possible risks, and have identified how you would respond or cope with them.

Planning for a crisis gives you the opportunity to:

  • Acquire appropriate resources you may need to respond effectively
  • Implement processes that will address the crisis situation
  • Train staff accordingly

Tip: It can be helpful to gather a small team of people to work through the steps towards developing a risk management plan.

This may be yourself and a business partner, or several senior staff in your organisation. Make sure the team members represent all the key areas of your business. Your peak industry sector association, local council and local emergency services can also be useful to consult.

Steps to managing risk

Managing risk involves working through the following steps to develop a risk management plan:

Step 1: Understand your business

What does your business need in order to operate successfully?

Step 2: Identify the risks 

What are the different risks that may occur and impact upon your business?

Step 3: Assess and plan to address risks

What is the likelihood of these risks occurring and what would you need to action to address them if they occurred?

Last Updated 18th August 2017