DON’T RISK IT!
DON’TRISK IT!A guide to assisttourism businesses toprepare, respond andrecover from a crisis
This Tourism 2020 project was funded by The Australian Standing Committee on Tourism (ASCOT) andcoordinated through the Industry Resilience Working Group.
Table of ContentsIntroduction . 5Prepare . 7Being Prepared Checklist . 8Plan to manage your risk . 9Share the load .12Plan your emergency response .14Plan to stay in business .18Practice, practice, practice .20Respond . 21Immediate Actions Checklist .22Responding to a crisis: First 24 hours .24Responding to a crisis: Short to Medium Term Actions (Days 2-14) .26Recover. 31Incident Recover y Checklist .32Cash Flow .33Managing Staff .34Revise your offer and your markets .36Crisis Support Management .40Templates. 41Risk Management Plan .43SWOT Analysis.44Roles and Responsibilities .45Contacts List – All Staff.46Key Contacts – External .47Triggers and Implications.48‘Go Pack’ Contents .49Crisis Communication Plan .50Business Recovery Plan.51Scenario Planning .52Event Log .53Estimates to Assist with Cash Flow Budget .54Cash Flow Budget.55Financial Decisions .56Reviewing Your Markets.57Marketing Action Plan.58Additional Resilience Resources .59Don’t Risk it! A guide to assist tourism businesses to prepare, respond and recover from a crisisIntroductionP3
ACRONYMS USED IN THIS GUIDE BOOKCMTHRITLTOPRRTOSTOSWOTTCMGVFRP4Crisis Management TeamHuman ResourcesInformation TechnologyLocal Tourism OrganisationPublic RelationsRegional Tourism OrganisationState Tourism OrganisationStrengths, Weaknesses, Opportunities, ThreatsTourism Crisis Management GroupVisiting Friends and RelativesIntroductionDon’t Risk it! A guide to assist tourism businesses to prepare, respond and recover from a crisis
IntroductionWho is the guide for?This guide is designed for use by any tourism business lookingfor assistance to prepare for, respond to, and recover from acrisis. It has been prepared for owner-operated businesses, aswell as those with a larger number of employees. The guidedoes not endeavour to provide advice on every type of crisisevent or business, but provides generic information that youcan apply to your business’s specific circumstances.How this guide is structuredThis guide book takes a time line approach following threephases of crisis management - PREPARE, RESPOND andRECOVER. PREPARE includes steps on how to understand yourbusiness and its exposure to risk, minimising risk,preparing your response to a crisis and planning yourrecovery post-crisis. RESPOND explains what should be done in the first 24hours following a crisis and in the short to medium term. RECOVER includes the actions required to get back tobusiness.REMEMBER:In today’s tourism environment, crisis events are common.As a tourism operator, it’s often not a question of IF acrisis will occur, but WHEN. Your capacity to deal with acrisis can make or break your businessPrepareWhat is a crisis?The term crisis can be defined as any situation that has thepotential to affect long-term confidence in an organisationor a product, and may interfere with its ability to continueoperating normally1. A crisis, as referred to in this guide, canbe natural or man-made and affects more than one business.Potential sources of crisis events include (but not exclusively):Natural disaster,e.g. earthquake,volcano, tsunamiSevere weatherincident, e.g.cyclone, tornadoor floodEscalating crimerate impactingvisitor safety orother civil unrestMan-madedisaster – e.g.chemical or gasleak, oil spillBushfire, threatof firestorm, ashfallout or other aircontaminationGlobal FinancialCrisis orfluctuatingcurrency marketsMajor transportincident affectingvisitor accessSevere drought,food shortagesTerrorist activityPandemic,plague or otherhealth scareServicesbreakdown, e.g.long-term powerfailure, watershortageLabour stoppageor labour marketfailureRecover RespondCrisis recovery success factorsSurviving and thriving from a crisis requires: COMMITMENT to the allocation of time, money andresources to each phase of the process. PLANNING your response, what you need to recoverand documenting it. This can be done yourself or with asmall team. Record your plan electronically and ensurethat it can be accessed off-site in the event of a disaster. INTEGRATION of your crisis management activitieswith your business plan, your business and the plannedresponses of emergency service agencies and keystakeholders (e.g. your Regional Tourism Organisation RTO). TESTING of your crisis response to ensure you and yourstaff are aware of their roles and responsibilities and canidentify any improvements required.Benefits of preparing for a crisis eventTo prepare for a crisis you will need to look at your businessand understand what it takes to keep it running. Betterunderstanding leads to a stronger business NOW and in theevent of a crisis.DID YOU KNOW?“80% of businesses that experience a major crisisand do not have a continuity plan do not survivemore than 2 years.”APEC, 2008Who prepared this guide?This guide has been developed by the Australian StandingCommittee on Tourism’s Industry Resilience Working Group(ASCOT IRWG) in its role in implementing the National LongTerm Tourism Strategy – Tourism 2020.1Pacific Asia Travel Association (PATA), 2003Don’t Risk it! A guide to assist tourism businesses to prepare, respond and recover from a crisisIntroductionP5
This page has intentionally been left blank.P6IntroductionDon’t Risk it! A guide to assist tourism businesses to prepare, respond and recover from a crisis
This page has been intentionally left blank.
This page has been intentionally left blank.
When a crisis event occurs it is too late to start thinking about what to do.Being prepared is about planning to manage your risk. It involves more than just making plans and running an occasional drill.Businesses need to evaluate their crisis exposure and develop plans to respond to and manage their business through a crisis event.Business owners and managers must regularly audit the plans, conduct crisis response exercises and acquire crisis management skills.Managers and staff need to be psychologically and physically prepared for the impact and stresses that crisis events may imposeupon them.1Plan to manage your riskDo you know what the most likely crisis events are and whatimpacts they could have on your business and / or yourdestination? Have you taken action to prevent or minimisethese risks?Record the risks identified in your Risk Management Plan.REMEMBER:Even if an event like a cyclone doesn’t hit your businessor town, it might cut roads stopping customers andsuppliers reaching you. Think outside the square and beprepared.The first step in preparing yourself for a crisis is to develop aRisk Management Plan by following the steps below.Please refer to the Risk Management Plan templateon page 43.Identify the risksWhere do risks come from and which risks are most relevant toyour business? Think about risks by doing things like: Brainstorming ideas with personnel Checking historical records Consulting experts including your insurance brokerLook at your business’ strengths, weakness, opportunities andthreats (SWOT).A crisis management SWOT Analysis should consider: Existing crisis management and control programmes Hazards within the organisation, its buildings, policiesand processes Potential socio-political, economic, technological orenvironmental crises Existing relationships with the media, the public andemergency services Possible indirect risks to your business (e.g road closurelimiting access or loss of a key supplier).Please refer to the SWOT Analysis template onpage 44.Assess the risksYou’ve identified the risks, now think about how they will affectyour business (consequence) and how likely it is that they willoccur (likelihood). This determines your level of risk.By assessing your risks you can prioritise the time and resourcesthat go towards planning for and managing that risk should itoccur.It will help you to: Identify risks that are most likely to occur Identify risks that will have the highest impacts Make informed decisions when addressing those risksUse the risk assessment tool over the page to determine thelevel of risk to your business and record the level in yourRisk Management Plan. To do this, you must first assessyour identified risk events to determine: the consequence of the event on your business wereit to occur – extreme, very high, medium or low. Theconsequences to your business will vary according tothe size and objectives of your business and need to betailored accordingly. the likelihood of the event occurring – almost certain,likely, possible, unlikely or rareWhen considering risks to your business think about: Natural disasters Industrial accidents Explosion Cyber attack Pandemics Systems failure Terrorist attack Financial CrisisDon’t Risk it! A guide to assist tourism businesses to prepare, respond and recover from a crisis Labour stoppagePrepareP9
Use the Consequence and Likelihood tables below to helpdetermine what level each identified risk event falls under.Once this is complete, use these answers in the risk assessmenttool to find your actual level of risk.Sand Bags Line Albert Street (photo by Jono Haysom)CONSEQUENCE TABLE1ConsequenceDescriptionExtremeThreatens the survival of the business. Loss of revenue is extreme.Very HighThreatens the effective functionality of the business and may require intervention. Loss of revenueis very high.MediumBusiness is not threatened, however could be subject to significant review or changed ways ofoperating. Loss of revenue is medium.Low/NegligibleThe consequences are dealt with internally or by routine operations. Loss of revenue is low /negligibleLIKELIHOOD TABLE2Likelihood of occurrenceTypical EventsPotential Crisis RisksAlmost certainExpected frequency greater than twice a yeare.g. A power outage due to poor local supplyLikelyMay happen once a yeare.g. A seasonal outbreak of blue-green algae inan adjacent lakePossibleOnce every few yearse.g. A flood eventUnlikelyIncident every three to five yearse.g. A bushfire during a period of droughtRareOnce every few decadese.g. Global economic crash - visitor numbersare at record lows due to a global economicdownturnRISK ASSESSMENT xtremeAlmost areLLMHHE Extreme risk; immediate action requiredH High risk; senior management attention requiredM Moderate risk: management responsibility must be specifiedL Low risk; manage by routine procedures1P10Introduction to Risk Management, SAI Global Limited, 20092Weatherproof Your Business, Tourism Queensland, 20093Introduction to Risk Management, SAI Global Limited, 2009PrepareDon’t Risk it! A guide to assist tourism businesses to prepare, respond and recover from a crisis
Address the risksAn important step in your plan is to determine how you willminimise or address the most likely risks to your business.Addressing a risk may involve: Reducing the consequence or impact of the risk to anacceptable level (e.g. backing up critical information orputting in place appropriate policies and proceduressuch as Workplace Health and Safety). Transferring the risk by sharing it with other parties (e.g.outsourcing a task to a subcontractor or taking outinsurance). Avoiding the risk by making changes in processes orpractices.Consider the risk implications of any new actions you put inplace. Make sure you allocate who will take action, when it willbe done and how you will know.HAVE A CANCELLATION POLICYA clear, concise and well communicated cancellation policycan reduce the consequences of risk. Knowing your legalobligations is important. For example, if your businessor access routes to your business are closed as a resultof a crisis, you are legally obliged to refund deposits forbookings that fall during that time.However, sometimes even if customers can access yourbusiness, they will want to cancel e.g. due to announcementssuch as ‘code red’. They may think the destination or yourbusiness will be less attractive or unsafe to visit and wanttheir deposit refunded.If you have a cancellation policy it makes it much easierto manage cancellations. The policy should be included incorrespondence sent to the customer such as a bookingconfirmation form and it should be listed on your website.If a booking is made over the telephone using a creditcard, the customer should also be made aware of yourcancellation terms. Otherwise, if you charge a credit cardin the event of a cancellation, it may be considered anunauthorised transaction by the credit card company.It helps to have a telephone script to follow when makingbookings, and to include cancellation terms on a writtenconfirmation form, providing evidence to the credit cardcompany that you have met their conditions.Remember that a person who cancels now may be a visitorin the future so it’s good business to part on good termsif possible. Please see page 26 for
hours following a crisis and in the short to medium term. . This page has intentionally been left blank. This page has been intentionally left blank. . Risk Management Plan template on page 43. When a crisis event occurs it is too late to start thinking about what to do.
Apr 04, 2015 · Pleaz lissen to me,‘cause me singin’ good And me love you like Greek man love chicken. Don don don, diri diri, don don don don. When me go on hunts, hunt with falcon; Me will bring you woodcock, fat as kidney. Don don don, diri diri, don don don don. Me no can tell you much beautiful, fancy stuff; Me no know Petrarch or spring of Helicon.
Risk Matrix 15 Risk Assessment Feature 32 Customize the Risk Matrix 34 Chapter 5: Reference 43 General Reference 44 Family Field Descriptions 60 ii Risk Matrix. Chapter 1: Overview1. Overview of the Risk Matrix Module2. Chapter 2: Risk and Risk Assessment3. About Risk and Risk Assessment4. Specify Risk Values to Determine an Overall Risk Rank5
Risk is the effect of uncertainty on objectives (e.g. the objectives of an event). Risk management Risk management is the process of identifying hazards and controlling risks. The risk management process involves four main steps: 1. risk assessment; 2. risk control and risk rating; 3. risk transfer; and 4. risk review. Risk assessment
DO NOT Don’t wash deep head wound Don’t move or shake Don’t remove helmet Don’t pick up child Don’t drink alcohol (48 hours) If skull fracture Don’t apply pressure to bleeding site Don’t remove debris from wound No aspirin Aspirin & ibuprofen can increase risk of bleeding If vom
81. Risk Identification, page 29 82. Risk Indicator*, page 30 83. Risk Management Ω, pages 30 84. Risk Management Alternatives Development, page 30 85. Risk Management Cycle, page 30 86. Risk Management Methodology Ω, page 30 87. Risk Management Plan, page 30 88. Risk Management Strategy, pages 31 89. Risk
1.5 Tactical Risk Decisions and Crisis Management 16 1.5.1 Risk preparation 17 1.5.2 Risk discovery 17 1.5.3 Risk recovery 18 1.6 Strategic Risk Mitigation 19 1.6.1 The value-maximizing level of risk mitigation (risk-neutral) 19 1.6.2 Strategic risk-return trade-o s for risk-averse managers 20 1.6.3 P
Depositary Receipts (ADRs, EDRs and GDRs) Derivatives XX X Hedging XX X Speculation XX X Risk Factors in Derivatives XX X Correlation Risk X X X Counterparty Risk X X X Credit Risk XX X Currency Risk Illiquidity Risk X X X Leverage Risk X X X Market Risk X X X Valuation Risk X X X Volatility Risk X X X Futures XX X Swap Agreements XX X
Risk analysis Process to comprehend the nature of risk and to determine the level of risk Risk appetite Amount and type of risk that the organization is prepared to take in order to achieve its objectives. Risk assessment Overall process of risk identification , risk analysis and risk eva
