10/9/23

THMC0203
Risk Management As Applied to
Safety, Security and Sanitation

Carla S. Bautista-Maghanay, LPT, MSHRM

Assistant Professor III

Course Packet 01

Introduction to
Risk Management

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Learning Objectives
01 Introduction to Risk Management

1 Describing the risk encountered in

hospitality and tourism industry;
2 Discussing the importance of risk
management.

3 Listing and describing the risk

management strategies and processes.

4 Describing the goal of food risk

management in the society.

INTRODUCTION
The hospitality industry faces risks in its daily
operations, so risk management is necessary to
prevent accidents and injuries. Hospitality industry’s
big threats including food, drink, bugs, cars, and
accessibility risks, and how to mitigate them by
implementing a risk management program.

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Risk Management

The process of identifying,

assessing and controlling
threats to an organization’s
capital and earnings.

Threat / Risk
Financial uncertainty,
legal liabilities, strategic
management errors,
accidents and natural
disasters.

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Risk
Every business Management
and organization allows
face the risk of organizations to
unexpected, attempt to
harmful events prepare for the
that can cost the unexpected by
company money minimizing risks
or cause it to and extra costs
permanently before they
close. happen.

Importance of
Risk Management

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Importance of Risk1 Management

An organization can
1 save money and
protect their future.

Strong corporate
governance principles
2 that focus specifically
on risk management
can help a company
reach their goals.

Importance of Risk1 Management

Provides protection
3 from events that are
detrimental to both the
company and the
environment.

Increases the stability

4 of business operations
while also decreasing
legal liability.

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Importance of Risk1 Management

Provides protection
from events that are
5 detrimental to both the
company and the
environment.

Protects all involved

6 people and assets from
potential harm.

Importance of Risk1 Management

Helps establish the

organization’s
6 insurance needs in
order to save on
unnecessary premiums.

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Risk Facing
Businesses in the
Hospitality and
Tourism Sector

1. Food-Borne Illness

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2. Alcohol Fueled Behavior

3. Transportation Accidents

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4. On-premises Security

5. Cyber Security

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Risk Management
Strategies and
Processes

Risk Management
Strategies and Processes

Establish Risk Communicate

Context Monitoring and consult

Risk
Risk Mitigation
Identification

Risk
Risk Analysis Assessment
and Evaluation

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Risk Management Approaches

Risk Risk Risk Risk

Avoidance Reduction Sharing Retaining

1
LIMITATIONS
Extensive data collection can be expensive
and is not guaranteed to be reliable.

Use of data in decision making processes

may have poor outcomes.

Lack of analysis expertise and time.

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1
LIMITATIONS
False sense of stability

The illusion of control

Failure to see the big picture

Risk management is immature

Risk Management Standards

ISO recommends the following target areas, or
principles and should be part of the overall risk
management process:

The process should create value for the

organization.
It should be an integral part of the
overall organizational process.
It should factor into the company’s
overall decision-making process.
It must explicitly address any
uncertainty.
It should be systematic and structured.

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General Principles
of Food Safety
Risk Management

1. Risk management should follow a structured

approach.

2. Protection of human health should be the primary

consideration in risk management decisions.

3. Risk management decisions and practices should be

transparent.

4. Determination of risk assessment policy should be

included as a specific component of risk management.

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5. Risk management should ensure the scientific integrity of

the risk assessment process by maintaining the functional
separation of risk management and risk assessment.

6. Risk management decisions should take into account the

uncertainty in the output of the risk assessment.

7. Risk management should include clear, interactive

communication with consumers and other interested parties
in all aspects of the process.

8. Risk management should be a continuing process that

takes into account all newly generated data in the evaluation
and review of risk management decisions.

Risk
Communication

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Risk Communication
Promoting awareness and understanding of risks (amongst employees,
government officials and consumers);

Promoting consistency and clarity about the risk analysis processes;

Providing an understanding for risk management decisions;

Strengthening good working relationships and promoting respect;

Promoting appropriate involvement of all stakeholders’ groups; and

Exchanging information, knowledge, attitudes, practices and perceptions

of those involved.

Summary

Risk management is about choosing the best way to reduce the risk.

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Summary

The primary goal of Risk management is to protect public health by controlling

the risks through the selection and implementation of appropriate measures.

REFERENCES

Yeung, Mylene (2022). Risk

Management with HACCP, as Applied to
Safety, Security and Sanitation

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Questions and
Clarifications

Matthew 6:34

Therefore, do not worry about tomorrow,

for tomorrow will worry about itself. Each
day has enough trouble of its own.

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Thank You
For a Great Session

Carla S. Bautista-Maghanay, LPT, MSHRM

Assistant Proffesor III

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