Tourism Risk Management - Sustainable Tourism Online

1. Must do.
2. Should do.
3. Could do.
STEP 4 – Evaluate Risks
Decisions have to be made about which risks have to be treated and in what order. The previous
activities in risk analysis will provide the information on which to make those decisions. Decisions on
risk treatment needs and priorities must be aligned with the destination’s expectations, values and
perceptions of risk.
1. Establish treatment needs and priorities in descending order. Where the same rating level is
allocated to a number of risks, the protection of life should be a higher priority than protection
measures for property, infrastructure, utilities or the environment.
2. Stakeholder consultation is essential.
3. Document:
• The risks which are not to be treated.
• The risks which will be treated in order of priority.
• How the decisions were arrived at.
Always monitor and review risks that you decide not to treat because priorities and circumstances
may change over time.
STEP 5 – Treat Risks
Before risks can be treated it is necessary to identify the options available, to assess the relative
merits of each, and to select the most appropriate. Risk treatment plans should then be developed
and implemented.
Standard risk treatment options available include:
• avoid the risk - choose not to proceed with an activity likely to generate risk;
• reduce the likelihood of consequences by modifying the risk;
• reduce the consequences of occurrence - by modifying susceptibility (exposure to the risk eg,
through best practice systems: building evacuation plans, sprinkler systems and trained staff
will reduce the consequences of fire in a visitor hotel) and/or increasing resilience (capacity to
sustain losses);
• transfer the risk – have another party accept or share the risk (eg, insurance companies – are
the premiums affordable, is protection available?);
• retain the risk - accept the risk and plan to manage the consequences (but only if the
consequences are able to be managed without adversely affecting the destination or the
perceptions of visitors);
30 Tourism Risk Management – An Authoritative Guide to Managing Crises in Tourism