CYRIL MAE VILLAVELEZ BSTM2- A1
RISK IDENTIFIED
-Decreased demand for
international travel
experiences.
-Intense competition from
other travel companies
adapting to the new market
demands.
-Economic downturn and
reduced consumer spending on
travel.
-Negative impact on customer
confidence and trust in the
tourism industry
-Inability to adapt quickly to
changing customer demands.
CONTROLS AVAILABLE LIKELIHOOD
Offer flexible cancellation and
refund policies to instill
confidence in customers
Enhance customer service and
personalized experiences to
build customer loyalty.
Offer competitive pricing and
attractive travel packages
Provide regular updates on
travel restrictions and
guidelines
Conduct market research and
analysis to identify emerging
Risk Assessment
JUSTIFICATION FOR CONSEQUENCES
LIKELIHOOD
Level 4 because travel
4 restrictions and safety
concerns have led to a
decrease in international
travel demand globally.
Level 3 because the shift in
3 customer demands is
evident, and competitors are
likely to respond to these
changes.
Level 3 because economic
3 downturns can affect
consumer spending patterns,
including travel
expenditures.
Level 4 because the
4 pandemic has significantly
impacted customer
confidence and trust in the
tourism industry.
Level 2 because while the
company may face
2 challenges, it has the
JUSTIFICATION FOR RISK
CONSEQUENCES
- Level 4 because a significant
4 decline in international travel
demand can have a substantial
impact on the company's
revenue and profitability.
-Level 3 because increased
3 competition can impact the
company's market position and
profitability, but it may not be
catastrophic.
-Level 4because a significant
4 decline in consumer spending
on travel can have a substantial
impact on the company's
financial performance.
-Level 3 because while a
negative impact on customer
3 confidence is significant, it may
not be catastrophic if
appropriate measures are taken
to address customer concerns.
-Level 4 because if the company
fails to adapt quickly, it may lose
4 its competitive edge and
January 07, 2024
ACCEPTABLE LEVEL
LEVEL
Decreased demand for
16 international travel experiences:
The risk level is 16, which
exceeds the acceptable level of 9.
Therefore, this risk is considered
higher than the acceptable level.
Intense competition from other
9 travel companies: The risk level is
9, which is equal to the
acceptable level of 9. Therefore,
this risk is considered at an
acceptable level.
Economic downturn and reduced
12 consumer spending on travel:
The risk level is 12, which
exceeds the acceptable level of 9.
Therefore, this risk is considered
higher than the acceptable level.
Negative impact on customer
12 confidence and trust in the
tourism industry: The risk level is
12, which exceeds the acceptable
level of 9. Therefore, this risk is
considered higher than the
acceptable level.
Inability to adapt quickly to
8 changing customer demands:
The risk level is 8, which is below
trends and customer opportunity to reassess its struggle to meet customer the acceptable level of 9.
preferences. business model and adapt to expectations. Therefore, this risk is considered
the new market demands. at an acceptable level.