THC 2

Republic of the Philippines

Bato Institute of Science and Technology
Dolho, Bato, Leyte

Name: ________________________________ Course/Year/Section: BSHM 2D

Instructor: Mr. Ryan Q. Zarco Date: August 15-20,2022

Module 1: Risk Management Concept & Principles

INTRODUCTION: adequately addressed whenever someone

prepares food for the customers. The danger of
There is no better way of starting the food poisoning due to the contamination of food
discussions in this book except through is high if the necessary precaution based on the
defining what risk is. Risk provides standards will not be followed. The government
opportunities while exposing us to outcomes has provided regulations that must be complied
that we may not desire. It is the coupling of with by any business ventures to make sure that
risk and reward that lies at the core of the the danger or harm is mitigated. Food sanitation
risk definition, and the innovations that have permit is mandatory requirement for business in
been generated in response make risk the food industry.
central to the study of not just finance but to
all of the business. 1. As what the image shown, can you give
some factors that lead to the risk in the food
LEARNING OUTCOMES: handling preparation?
After this lesson, you must be able to:
 define risk ____________________________________
____________________________________
 discussed risk vs. hazard
 explain the sources of risk
ANALYSIS:
ACTIVITIES:
1. If there are factors that contamination takes
place, can you give some preventive
measures to avoid such risk?
___________________________________
___________________________________
2. With the implementation of regulations
designed by the government, do you think it
is really useful to the food industry? Why?

_________________________________________
Food handling preparation avoiding _________________________________________
contamination.
ABSTRACT:
Food handling is one issue that must be
Risk according to UNWTO, is a
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situation that exposes someone or something of proliferation of minor and major competitors.
to danger harm or loss. Risk can be a The same would make one realize the need to
physical safety matter, a risk of property deviate to usual strategy of capturing the market to
loss, a financial business, and more. From a more relevant and significant strategy. When a
the moment a person engages himself in the person is in the business of transportation, they
business tourism and hospitality, whether a have to think the erratic prices of the oil in the
sole proprietorship, partnership or market. When a person is in the business of travel
corporation, the risk immediately attaches. agency, there is a chance to deviate the tour
packages as an effect of the peso equivalency in the
The business dictionary has defined foreign exchange.
risk as the probability of threat of damage,
injury, liability, or any other adverse Risk vs. Hazard
occurrence that is caused by external or
internal vulnerabilities, and that may be There are instances wherein risk and hazards
avoided through preemptive action. The are being used interchangeably as they thought they
same has stressed out the definition of risk were the same, but the Canadian Center for
as applied to the food industry: the Occupational Health and Safety gave a concrete
possibility that due to a particular hazard in definition to distinguish the two. Accordingly,
food, there will be an adverse effect on hazard pertains to any source of potential damage,
absolute magnitude. Tourism like hospitality harm or adverse health effects on something or
is a trade or a business. It may sometimes someone, while risk is the chance or probability that
reach its desired outcome, but the possibility a person will be harmed or experience an adverse
of not realizing it should not be set aside. health effect if exposed to a hazard. It may also
Engaging in a business like tourism and apply to situations with property or equipment loss,
hospitality has a probability of threat or or harmful effects on the environment.
damage as there are events beyond the
contemplation of man. The weather as of the According to workSMARK, a hazard is
time of entering an agreement with clientele something that can cause harm while a risk is a
may be entirely different from the actual day chance that any hazard will cause harm to
of the event. Those actual occurrences must somebody.
have a preemptive action.

In the point of view of economics, risk implies

future uncertainty about deviation from expected
RISK
earnings or expected outcome. Risk measures the HAZARD
uncertainty that an investors is willing to take to Anything that can cause How great the
realize a gain from an investment. The very reason harm chance that
why people engage themselves in business is to (eg. a chemical, someone will
realize gains that could address their respective electricity, ladders, etc.) be harmed by
economic interests. However, realizing gain is not the hazard
an easy thing because of the hazards and risks
attaching to it. There is a need to plan on time and
think of the best possible means to address the risks
and hazards barring the full implementation of the Let us explain further the distinction
desired plan of the business. When one is in the between the risk and hazard using the
business of simple sari-sari store, there is a hazard hospitality and tourism industry-related
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activities as the framework. should be treated lastly. Risk management, based

Event organizing is effective in boosting the on the definition of ISO 31000 and Hubbard,
economy of both industries, tourism, and follows a systematic approach to mitigating, if not
hospitality. One cannot accomplish it in just a wink eradicating entirely the risks. Close coordination
of an eye. It must undergo a tedious study and with the key people in an organization is something
planning because some risks and hazards are essential to the control of the unfortunate events.
attached to it. Guest performers are considered
hazards as they may cause commotion and Sources of Risks
stampede because of the unruly people. Risk can come from different sources like the
The unruly people are also considered a hazard as following:
they can cause chaos to the whole event process.
The overwhelming attendance of guest might also 1. Uncertainty in financial markets
be considered hazard as it can cause traffic 2. Threats from project failures (at any phase
congestion and noise nuisance to the nearby in design, development, production, or
establishments. There is a hazard of terrorist attack sustainment life-cycles)
and robbery as bad elements would love to take 3. Legal Liabilities
chances of executing an evil design in populated 4. Credit Risks
and busy areas. On the other hand, the risks that 5. Accidents
those hazards can cause damage to property and in 6. Natural Causes and Disasters
jury to people are very high should the management 7. Deliberate attack from an adversary or
ignore the essence of risk management in the design 8. Events of uncertain or unpredictable root-
of their event. cause
There is also a hazard in the food preparation in
the hotel industry. The people preparing might be a APPLICATION:
factor of hazard as their knowledge, training, and 1. What suggestions can you give to mitigate
skills are needed to make sure the foods are the risks, if not entirely avoid it?
adequately prepared. Thus, food contamination is
avoided. The risk of food contamination vis-à-vis
with poisoning is imminent if the one handling the TEST YOUR UNDERSTANDING:
food has done no precautionary measure. The 1. Define risk according to your
supplier of the ingredients is also a factor of hazard. understanding?
The trouble will come in even if the one preparing
the food is careful in food handling or if the 2. Differentiate risk from hazard?
ingredients per se are contaminated.
Risk management, as defined in ISO 31000, is 3. Identify the Sources of Risks
the identification, evaluation, and prioritization of
risks. It is followed by coordinated and economical
application of resources to minimize, monitor, and REFERENCES:
control the probability of unfortunate events
(Hubbard, 2009) to achieve the desired output. Jovid Maricar D. Maranan, D.B.A, Mario H.
To address, the issue of risk which is inevitable Maranan, D.P.A., Cristina O. Nazareno-Caluza,
but foreseeable in any business venture, Ph. D. Risk Management For Tourism and
circumstances must be studied carefully to identify Hospitality Management. Copyright 2018.
all the risk involved, followed by an intense (http://www.businessdictionary.com/definition/
evaluation of the same to determine which among risk.htmloccur)
those risks should be addressed first and which (https://economictimes.indiatimes.com/
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definition/risk)