RISK MANAGEMENT: THE OCCUPATIONAL HEALTH AND SAFETY

ASSESSMENT ON SELECTED RESORTS IN TACURONG CITY

BACHELOR OF SCIENCE IN TOURISM MANAGEMENT

STI COLLEGE TACURONG

 CHAPTER I
INTRODUCTION

Background of the Study

Setting a risk management plan helped a business protected against

known and emerging risks and to cope with the unexpected risk like Covid-19

pandemic. Nowadays, risk encompassed everything from external forces to

internal forces that affect the safety and security of the guest, employees and

other visiting the establishment.

Risk Management is the identification, analysis, assessment or elimination

of unacceptable risks. An organization may use risk assumption, risk avoidance,

risk retention, risk transfer, or any other strategy in proper management of future

events. (Hubbard et.al, 2015)

Managing and operating a resort is just like any other business. It faces

various types of risks. Hence, the management must be ready to deal with them.

In order to minimize the effect of these risks, the resort management has to find

and propose the most suitable and best risk management solutions. It creates a

safe work environment, increases the ability of business operations, decreasing

legal liabilities, provides protection from threats and helps establish the

organization more productive.

As the Philippines showed travel and tourism demand drivers covering

natural, cultural and non-leisure resources. (Desiderio, 2022) The Risk

management practices in tourism industry action taken must satisfy both current
and future conditions of the resort. Therefore, the management must

continuously plan and implement risk management in their organization.

Scientific and systematic approach can be taken to solve the problems related to

risks experienced by both individuals and business organizations.

In Sultan Kudarat is comprises of 11 municipalities and 1 city. Three of the

municipalities (Kalamansig, Lebak, and Palimbang) are coastal towns, while the

rest of the province is located inland. Tacurong City is the smallest unit in the

province by land area, but is the most urbanized and is considered the province's

commercial center including attractive resorts. Some resorts are El Carlito

Garden Resort, Villa Marin Resort, S&M Resort and Functions, Mamas Love

Resort, Vpg Family Garden Resort, Villa Maria Resort, La Caridad Palm Resort,

Almars Garden Resort and Monte Vicente Resorts.

As of 2015 census on population, the City of Tacurong has a total

population of 98,360. For 2020, its projected population is 107, 509 with an

annual geometric growth rate of 1.56 percent. (https://tacurong.gov.ph/city-of-

goodwill-profile-page/)

The researchers find it interesting to explore how risk management is

practiced and adopted in the hospitality industry specifically by the entity or

company that is involved in the resort business and operation. This study is

motivated due to the fact that for a developing country like Philippines, tourism

industry is important as it generates huge revenue for the government. Thus, the

outcome of this study is crucial in assisting tourism and hospitality. This is to

ensure their operation and management are not severely affected by any
unexpected risks which may lead to the reduction of tourist arrivals and hence,

tourism revenue.

Research Questions

Generally, this study aims to determine the risk management: The

Occupational Health and Safety Assessment on Selected Resorts in Tacurong

City.

Specifically, it aims to answer the following;

1. What is the socio-demographic profile of the selected resort in terms of;

1.1 Geographic Location;

1.2 Number of Employees;

1.3 Monthly Income;

1.4 Length of business operation?

2. What are the extent of tourism risk or challenges faced by the selected

resorts in terms of;

2.1 Environmental Risk;

2.2 Business Risk;

2.3 Human Resources Risk?

3. What is the level of risk management on the occupational health and

safety assessment in terms of;

3.1 Risk Identification;

3.2 Evaluation and Analysis;

3.3 Mitigation Planning and Monitoring;

 3.5 Preventive Mechanisms?

4. Is there a significant relationship between the extent of tourism risk and

the risk management on occupational health and safety assessment of

selected resorts?

Hypothesis

Ho (Null Hypothesis) There is no significant relationship between the extent

of tourism risk and the risk management on

occupational health and safety assessment of

selected resorts.

Significance of the Study

The conduct of this study can contribute valuable information, knowledge

and strategies which are significant to the following;

Province of Sultan Kudarat It will help them to be aware of the effectiveness of

the program and if this program would progressively

contribute in improving our economy and ensuring the

wellbeing of the beneficiaries

Tourism Industry It may serve as the basis for them to take considerate

measures to monitor and evaluate regularly the tourism

industry.
Business Owner The study will contribute to be more aware on the

importance and to make plans and seek strategies on their

business.

Employees This study will not only give them a better understanding of

their field of work, but it will also provide them a greater

sense of responsibility, which will contribute to mutual

benefits to all parties.

Tourist/ Travelers As the most important factor of this study, the result will let

them adapt and be ready for changes and will provide them

knowledge on every detail, they must know to be ensured of

a good service.

Community The research will benefit the community through the

knowledge that potentially obtained and will be useful to

innovate their understanding.

STI The findings of the research will show the socio-economic

impact of Covid-19. This can be the basis of the institution

to promote the institution through improving its strategies

Educators The research will evaluate strategies on tourism

management and initiate platforms or campaigns to build a

more productive organization.

Researchers The outcome of the study is beneficial to the present

researchers. The study may be one of the bases that a new

theory in learning will arise.

Future researchers This study will help them to be a better analyst and it can

serve as a future reference to some related studies.

Scope and Limitations

The study covers the risk management: The Occupational Health and

Safety Assessment on Selected Resorts in Tacurong City

The study included the socio-demographic profile of selected resorts in

terms of Geographic Location, Number of Employees, Monthly Income and

Length of business operation. It also discussed the extent of tourism risk or

challenges faced by the selected resorts including environmental, business and

human resource risks. Level of risk management on the occupational health and

safety assessment in terms of Risk Identification, Evaluation and Analysis,

Mitigation Planning and Monitoring and Preventive Mechanisms.

The researcher employs a purposive sampling to determine the

respondents of the study which consists of business owners or employers of

resorts found in Tacurong City. This study is conducted during the first semester

of Academic Year 2022-2023.

 CHAPTER II
REVIEW OF RELATED LITERATURE

This chapter involves the review of related literature and study. It includes

the ideas or conclusions wide scope of definition and others. Those that were

included helps in knowing the exact and necessary information that would be

helpful to the present study.

Risk Management

Risk management is the process of identifying, assessing and controlling

financial, legal, strategic and security risks to an organization’s capital and

earnings. These threats, or risks, could stem from a wide variety of sources,

including financial uncertainty, legal liabilities, strategic management errors,

accidents and natural disasters. If an unforeseen event catches your organization

unaware, the impact could be minor, such as a small impact on your overhead

costs. In a worst-case scenario, though, it could be catastrophic and have

serious ramifications, such as a significant financial burden or even the closure of

your business. (Crouhy, 2014)

 To reduce risk, an organization needs to apply resources to minimize,

monitor and control the impact of negative events while maximizing positive

events. A consistent, systemic and integrated approach to risk management can

help determine how best to identify, manage and mitigate significant risks.

According to Hubbard, 2016, Risk management is an important process

because it empowers a business with the necessary tools so that it can

adequately identify and deal with potential risks. Once a risk has been identified,

it is then easy to mitigate it. In addition, risk management provides a business

with a basis upon which it can undertake sound decision-making.

For a business, assessment and management of risks is the best way to

prepare for eventualities that may come in the way of progress and growth.

When a business evaluates its plan for handling potential threats and then

develops structures to address them, it improves its odds of becoming a

successful entity.

In addition, progressive risk management ensures risks of a high priority

are dealt with as aggressively as possible. Moreover, the management will have

the necessary information that they can use to make informed decisions and

ensure that the business remains profitable. (Corporate Finance Institute, 2022)

Environmental Risks
 Environmental risks and hazards come in multiple forms, from climate

perturbations to floods to pollutants and so on. Both the determination of the

actual risk of a particular hazard and development of means to mitigate the risk

or hazard are crucial. Faculty are involved in research in areas including mine

reclamation, flood hydrology, coastal zone management, drought mitigation,

radioactive and other contaminants. Approaches range from geophysical through

biological to cultural and social analyses. The probability or chance of suffering

an adverse consequence, or the potential threats of negative effects on business

operations and the business environment by flood, cyclone, tornado etc. arising

from activities of organizations. The future growth of any organization vastly

dependent on many factors; and one of them is the adopting climate or

environmental change. If an organization fails to adopt environmental changes, it

surely a threat to that organization.

Many new mills and manufacturing firms are being built and started

producing goods and services for their customers. By using raw materials or

chemicals, they gradually harm the natural environment. Water, air, and lands

are being polluted and wasted permanently which are an incurable environmental

risk for people and the organization. (Oda and Blyton, 2017)

These are the most important elements for any business organization.

And the land is one of the four factors that any organization needs as a price

factor to establish its business. Unplanned and mismanagement of land and

waterway will increase the potential threats for organizations. Population density
was always important for any given area. Low population density is potentially

always good for any environment because of fewer uses of natural energy and

other resources. When the number of people starts living in a vulnerable area,

the probability of damaging properties and lives are increased and it’s applicable

for an organization as well.

With the changes in climate, many countries are facing many types of

natural disasters. Sometimes, they are extremely disastrous for a country.

Though some organization can reap the benefit from a natural disaster, it’s only

for a short period. The organization can face natural disasters like flood, cyclone

etc. (Faizul Haque, 2020)

Business Risks

Business risk is the exposure a company or organization has to factor(s)

that will lower its profits or lead it to fail. Anything that threatens a company's

ability to achieve its financial goals is considered a business risk. There are

many factors that can converge to create business risk. Sometimes it is a

company's top leadership or management that creates situations where a

business may be exposed to a greater degree of risk. However, sometimes the

cause of risk is external to a company. Because of this, it is impossible for a

company to completely shelter itself from risk. However, there are ways to
mitigate the overall risks associated with operating a business; most companies

accomplish this through adopting a risk management strategy.

According to Dr. Seuss, 2018, Business risk, on the other hand, is about

internal and external forces that converge to create threats to a company and its

management team. These threats could emerge from the external business

environment, including macroeconomic forces well outside the control of

management (like inflation, foreign exchange rates, or prevailing interest rates).

Industry-specific risks, like the level of concentration in the industry, regulatory

risk, barriers to entry, the threat of disruption, and other factors. Company or firm-

level concerns, like ineffective management, reputational risk, a toxic corporate

culture, and customer or supplier concentration risk.

Human Resource Risks

Human resource risk management identifies potential employee-related

risks to your business so you can minimize any problems before they arise. If a

business ensures all employees are satisfied in the workplace, this will protect

the organization against possible issues. Not mitigating employee-related risk

can negatively impact revenue, reputation, profitability, and other aspects of

the business. (Gardner, 2019)

 The role of a human resource risk management professional is to

consider all of the possible outcomes of employee risks, which can be related

to employee behavior, management styles, or salaries, for example. 

Risk management figures out the scenarios most likely to occur and the

potential outcomes of those situations. Where possible, human resource risk

management specialists look for ways to reduce risky situations. For example,

if HR receives a complaint from an employee about their manager’s temper,

they may need to step in and work with the manager on anger management

tactics.

Occupational Health and Safety

Occupational Health and Safety (OHS), also known as Occupational

Safety and Health (OSH), refers to the generic practice of addressing and

reducing potential safety and health risks to employees. This can cover anything

from risk assessment, injury prevention, work-life balance, safety protocols, and

workplace hazards, to compensation and benefits, and employee management.

Occupational safety is an important part of any business, as staff safety

should always be prioritized before anything else. It’s the responsibility of

employers to ensure that their staff are well-taken care of and are surrounded by

as few risks as possible, so having guidelines in place for OHS can help them

greatly. (Dahl et. al, 2018)

 A guide on OHS and having OHS standards in place will not only ensure a

safe workplace and safe and healthy employees, but they could also lead to

improvements in business as well. Studies in Europe show that workplace

hazards and injuries not only have a physical cost on employees, but they

have additional costs to companies as well. Employees getting sick and injured

are costly to deal with for both the employees and their leaders, so preventing

and mitigating them early on will save them both a lot of time and money. Good

workplace conditions are also linked to more employee productivity, as

employees are more likely to be motivated when they know they are cared for

and are in a safe environment where they can work their best. (Grey and

Aoyama, 2014)

Occupational health and safety is the field of public health that studies

trends in illnesses and injuries in the worker population and proposes and

implements strategies and regulations to prevent them. Its scope is broad,

encompassing a wide variety of disciplines—from toxicology and epidemiology

to ergonomics and violence prevention. Historically, the focus of occupational

health and safety efforts have been on manual labor occupations, such as factory

workers. But the field now encompasses all occupations in the United States.

In addition to ensuring our work environments (from construction sites to

office buildings) have safety precautions in place to prevent injuries, experts in

occupational health also work to limit both short-term and long-term hazards that

could lead to physical or mental illness now or in the future.

 Nearly three million people suffer some kind of serious work-related injury

or illness every year in the United States. 2 Millions more are exposed to

environmental health hazards that could cause issues years from now. Workers'

compensation claims total more than a billion dollars a week.That doesn’t even

account for the loss of wages and other indirect expenses, such as decreased

productivity and the psychological toll of experiencing or caring for someone with

an injury.

With the exception of self-employed individuals and relatives of

farmworkers, nearly all employers both private and public have a social and legal

responsibility to establish and maintain a safe and healthy environment. Some

are happy to comply for ethical reasons or because injuries and illnesses can

lead to lost productivity, turnover, and higher employer-subsidized health

insurance premiums. It is common for larger employers to establish their own

workplace health and safety initiatives that exceed regulatory requirements. 

Risk Identification

Risk identification is the process of listing potential project risks and their

characteristics. The results of risk identification are normally documented in a risk

register, which includes a list of identified risks along with their sources, potential

risk responses, and risk categories. This information is used for risk analysis,

which in turn will support creating risk responses. Identified risks can also be
represented in a risk breakdown structure, a hierarchical structure used to

categorize potential project risks by source. (Crichton, Scarry and Cussler, 2016)

Though the major work on risk identification is usually done in the

beginning of a project, it's important to remember that risk identification is an

iterative process; new risks can be identified throughout the project life cycle as

the result of internal or external changes to a project.

The objective of the risk identification process is to ensure that all potential

project risks are identified. The strategies for dealing with these risks will be

devised during later risk management steps.

The ultimate purpose of risk identification is to minimize the negative

impact of project hiccups and threats and to maximize the positive impact of

project opportunities. Only by identifying risks first will a project manager be able

to control the impact of a risk on a project. Awareness of potential project risks

reduces the number of surprises during the project delivery and, thus, improves

the chances of project success, allowing the team to meet the time, schedule,

and quality objectives of the project.

Finally, the purpose of risk identification is to provide information for the

next step of the risk management process: risk analysis.

Evaluation and Analysis

 Risk evaluation is one of the most important parts of project management

and of running any business. Every project which is undertaken by a company -

whether that be a construction project, specific product production run or

anything else - requires the management and mitigation of risk.

The type and amount of risk associated with the running of a project or

operation is of course largely dependent on the type of industry and company.

Construction companies have very different risks to IT companies, but both

assume a lot of risk. (Hunter et. al, 2020)

One of the most important parts of risk and hazard management is risk

evaluation. Risk evaluation is the systematic 'evaluation' of risk, whereby a

project manager or company assess each risk on some standardized dimensions

like likelihood of occurrence and the severity of the risk should it eventuate.

When considering the 'best' risk evaluation method for your company or

projects, it's important to think about what makes the most sense for you. How an

IT company evaluates risk will share some common ground with how the

construction company evaluates risk, but there will also be some practical

difference between how they get evaluations done.

For example, a completely office based IT company can probably afford to

draw out some extensive what-if analyses and fault trees, whereas a construction

company is much more likely to lean on the more practical risk assessment.
 In general, the combination of risk assessments and risk registers is the

most common and 'best' risk evaluation method. Risk assessments are very

practical and easy to conduct before conducting tasks, while risk registers enable

the macro-level evaluation of a series of risks in a reliable way.

Mitigation Planning and Monitoring

Hazard mitigation planning reduces loss of life and property by

minimizing the impact of disasters. It begins with state, tribal and local

governments identifying natural disaster risks and vulnerabilities that are

common in their area. After identifying these risks, they develop long-term

strategies for protecting people and property from similar events. Mitigation

plans are key to breaking the cycle of disaster damage and reconstruction.

Mitigation planning saves lives and property, speeds recovery following

disasters, and expedites both pre-disaster and post-disaster grant funding.

Developing a hazard mitigation plan is a requirement for any local government

that wants to apply for mitigation grant funds. Communities with an adopted plan

may apply to receive available mitigation funds. (Isayama, 2017)

Sound mitigation planning can produce long-term recurring benefits by

breaking the repetitive cycle of loss during disasters. The premise is to invest

funds today on projects that will mitigate future damage and reduce the need for

future funds to recover, repair and reconstruct after a disaster. Implementing

good mitigation practices will enable local residents, businesses, and industries

to re-establish themselves in the wake of a disaster, getting the local economy

back on track sooner. Mitigation planning can also lead to other benefits. For

example, acquiring land in known hazard areas can help preserve open space,

maintain environmental health and enhance recreational opportunities. Many of

these common goals will become increasingly evident as a community walks

through the local mitigation planning process.

Preventive Mechanism

To manage the amplifiers of supply chain disruptions with their roots in

supply chain globalization and product/process complexity, firms have deployed

a variety of different Risk Reduction mechanisms. These mechanisms were also

coded and classified into three distinct categories of risk reduction activities,

which correspond to the three elements of disruption discover, recovery, and

supply chain redesign. The risk reducers have the following impacts: Improved

information visibility reduces the time between the disruption and its discovery,

Excess resources reduces the time between disruption discovery and recovery,

and Supply Chain Planning and Collaboration ensures that the design of the

supply chain is made more robust to reduce the probability of these events

occurring again. (Jordan and Clark, 2016)

 Organizations are adopting a variety of mechanisms to prevent disruptions

from occurring. Companies who have recently experienced a major disruption

are especially likely to do so. Prevention involves first understanding the key

players in one’s global sourcing channel, and establishing the need to work

together to minimize the potential for disruptions. Once these relationships are

established, the partners can meet in an open environment to identify the

leverage points that represent risk, and work collaboratively to plan in advance

for potential problems, or better yet, eliminate these risks altogether. Global

procurement and logistics personnel play a key role in establishing and laying the

foundation for a more robust supply chain, by getting the right players involved

early on in designing the global sourcing channel. (Creasey et. al, 2018)