New Notebook

Notes on Outsourcing and Risk Transfer

Outsourcing Issues

Service Delivery Delays
- Thoughts: Relying on third-party services can sometimes lead to inefficiencies.
- Additional Information: If the service delivered does not meet expectations, it can affect the overall performance of the leading business.
Confidentiality and Security Risks
- Thoughts: Data protection is paramount, especially when sensitive information is involved.
- Additional Information: Businesses may have less control over security measures when outsourcing, which can increase vulnerability.
Contractual Flexibility
- Thoughts: Contracts should allow for adjustments as business needs change.
- Additional Information: Rigid contracts can hinder the ability to adapt to market changes or operational challenges.
Management Difficulties Due to Changing Providers
- Thoughts: Transitioning between service providers can be disruptive.
- Additional Information: This can lead to complications in service continuity, potentially affecting customer satisfaction.
Alignment with Business Needs
- Thoughts: It's crucial to ensure that outsourced services align with business objectives.
- Additional Information: Misalignment may result in services that do not support the core goals of the leading business.

Derivatives

Definition: Financial contracts whose value is derived from an underlying asset such as equities, bonds, and loans.
- Thoughts: Understanding derivatives is critical for risk management in financial contexts.
- Additional Information: They are used to hedge against market fluctuations and can include various instruments like options and futures.

Contractual Risk Transfer

Risk Transfer Mechanisms
- Thoughts: Contracts can be effective in managing risk by delineating responsibilities and liabilities.
- Additional Information: The clause for indemnification specifies that one party may be held liable for damages, which helps to clarify expectations in case of a breach.
Insurance Agreements as a Model
- Thoughts: Using insurance-like structures in contracts can provide clarity on risk management strategies.
- Additional Information: Contracts should detail penalties and indemnifications to protect parties involved.

Key Authors Mentioned

Malleswari (2013) on derivatives
Rehman (2015) on risk management
Boggs (2017) on contractual risk transfer

These notes encapsulate the main points regarding outsourcing and risk management discussed in the text, providing additional context and considerations for each point.

Notes on Stakeholder Consultation for Theme Park Development

Importance of Consultations
- A private corporation intending to build a theme park must engage with the community that will be affected. This ensures that the potential impacts—both positive and negative—are identified and addressed.
- Involving stakeholders from the onset promotes transparency and trust. It may also reduce opposition to the project later on.
Role of Local Government
- The local government unit plays a critical role in assessing the project's impact on the local economy and environmental sustainability.
- Their support is essential for project legitimacy. The relationship should be characterized by open dialogue, where community concerns are prioritized.
Inclusion of Local Communities
- Residents and nearby barangays (neighborhoods) must be consulted to understand their concerns and expectations. This ensures that the project aligns with community interests.
- Community involvement can also foster a sense of ownership and responsibility toward the project's success.
Management of Conflicting Interests
- Proper management strategies are vital to navigate conflicts that may arise between different stakeholders. Clear communication channels and mediation processes should be established.
Formation of a Risk Management Committee
- There's a recognized need to create a committee focused on risk management, addressing issues like safety and security.
- A diverse committee comprising various stakeholders can facilitate comprehensive risk assessments.

Stakeholders Expected to Participate in the Committee:

Stakeholder Group
1. Administration of tourism department
2. Police authority
3. Security agencies
4. Government bodies (disaster management, foreign affairs, health, immigration, transportation)
5. Transportation associations
6. Hotel associations
7. Tour operators
8. Tourism and travel representatives
9. Consumer groups

Research Insights on Stakeholder Relationships
- Studies indicate that enhancing relationships between tourism companies and policymakers is crucial. Such collaborations improve the effectiveness of management and marketing strategies.
- Public sector involvement is generally more significant than the private sector in governance, suggesting a need for ongoing partnerships between the two for successful tourism development.
Need for Partnerships
- Establishing partnerships among stakeholders can facilitate better integration and cooperation. This collaborative approach can lead to improved tourism development outcomes, benefiting all parties involved.

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Notes on Sanitation Code and Fire Safety Regulations

Failure to Meet Building Code Standards
- The trial court found that the establishment failed to provide necessary fire exits and sprinklers, contributing to a hazardous environment.
- Implication: It's crucial for businesses, particularly those in tourism and hospitality, to adhere strictly to fire safety codes to ensure the safety of both employees and guests.
Reckless Imprecise of Quezon City Government Officials
- Officials were charged for allowing unsafe conditions that led to multiple injuries and homicides.
- Reflection: This indicates a systemic failure in governance regarding public safety, emphasizing the need for accountability and thorough inspections of establishments.
Sanitation as a Vital Area
- Sanitation is highlighted as critical in tourism, relating to food preparation and guest safety.
- Additional Insight: Maintaining high sanitation standards can enhance a business's reputation, leading to increased customer trust and loyalty.
Securing a Sanitary Permit
- Section 3-A emphasizes the necessity of obtaining a sanitary permit before operating a food establishment.
- Note: This process usually involves health inspections and compliance with safety standards, underscoring the importance of regulatory measures in public health.
Structural Requirements for Business Establishments
- The code outlines specific requirements for facilities, including floors, walls, ceilings, and sanitation facilities.
- Consideration: Proper infrastructure is essential for compliance and can influence a customer's experience, making it an important investment for any business owner.
Storage of Perishable Goods
- Establishments must refrigerate perishable goods between 7°C and 4°C, with specific guidelines for storing fruits and vegetables.
- Key Point: Implementing strict storage protocols not only meets regulatory requirements but also preserves food quality, preventing health risks associated with spoiled food.

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Notes on SABINIANO DUMAYAG vs. PEOPLE OF THE PHILIPPINES Case

Context

This document discusses a legal case involving contributory negligence related to a traffic accident. It highlights the responsibilities of drivers in hazardous situations and the implications of their actions in legal terms.

Key Points

Contributory Negligence
The case illustrates how both the petitioner (Dumayag) and the tricycle driver shared responsibility for the accident. This principle is crucial in personal injury claims, where multiple parties may be at fault.
Blind Curves & Awareness
The text notes that there were "two blind curves" along the highway that the petitioner should have been aware of. This emphasizes the importance of situational awareness for drivers, particularly in areas with known hazards.
Proper Execution of Driving Responsibilities
Dumayag's claim of having stepped on the accelerator suggests a failure to control the tricycle properly. It serves as a reminder of the critical nature of executing driving responsibilities with caution and attentiveness.
Proximate Cause
The court determined that the proximate cause of the accident was the negligence of the tricycle driver. Understanding proximate cause is essential in negligence cases, as it relates to whether the actions of one party directly led to the incident.
Liability Reduction
The ruling allowed for a reduction of liability (up to 50%) based on the circumstances. This reflects the legal principle that liability can be apportioned among parties based on their degree of fault.
Insurance and Risk Management
The document discusses risk management in relation to insurance, suggesting that proper anticipation of risks can mitigate liability. This includes engaging in insurance practices that cover future liabilities.

Additional Information

Legal Precedents
The mention of other cases (Rakes v. Atlantic Gulf & Pacific Co., etc.) underscores how prior decisions inform current legal rulings, a fundamental aspect of common law.
Types of Damages
The text also notes that moral and exemplary damages were not warranted, indicating the court's stance on the nature of the damages in this case. Understanding the different types of damages is essential for comprehending legal compensation.

Conclusion

This document serves as a critical reference for understanding contributory negligence and its implications in civil liability cases, alongside insights into risk management within the insurance sector.

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Notes on Training and Safety in the Tourism Industry

Provide Training for the Staff

Importance of Training: It’s crucial for staff in the tourism and hospitality sectors to be adequately trained to handle emergencies effectively. Understanding how to manage risks can mitigate panic and ensure guest safety.
- Thoughts: Regular training sessions can empower employees, making them feel more confident in their roles during crises.
- Additional Info: Training should include emergency response, first aid, and hospitality management practices to enhance overall service quality.

Safety Drill in the Tourism Industry

Purpose of Safety Drills: Staff must be equipped with the skills necessary for handling emergencies. Active participation in drills helps familiarize employees with emergency protocols.
- Thoughts: Engaging employees in simulations can improve their response times and decision-making skills during real emergencies.
- Additional Info: Drills should be tailored to specific scenarios relevant to the location, such as fire or earthquake drills.

Lockdown Drill

Definition: A lockdown drill prepares staff for situations involving intruders or threats. It involves securing the premises and waiting for instructions.
- Thoughts: Conducting regular lockdown drills can help instill a sense of safety and preparedness within staff and guests.
- Additional Info: Clear communication during lockdowns is vital to ensure everyone understands the necessary actions.

Earthquake Drill

Purpose: This drill teaches staff and guests to respond appropriately when an earthquake occurs, focusing on safety measures like "stop, drop, and hold on."
- Thoughts: Regular practice can enhance the chances of survival during actual earthquakes and reduce injuries.
- Additional Info: Understanding local building codes and safety regulations can aid in developing effective drill practices.

First Aid

Knowledge of First Aid: Essential for all staff, understanding how to administer first aid can significantly impact the well-being of guests in emergencies.
- Thoughts: Employees trained in first aid can act quickly to reduce the severity of injuries before professional help arrives.
- Additional Info: Regular workshops on first aid can keep teams informed about the latest best practices and procedures.

Practical Results of First Aid Training

Safety Awareness:
- Enhances the overall safety culture within the organization, reducing the frequency of accidents.
- Encourages a proactive approach to emergency situations.
Immediate Attention:
- Quick intervention by trained staff can prevent critical injuries from worsening.
- Creates a safer environment, which can enhance customer satisfaction and trust.

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Notes on Insurance Contracts and Principles

Financing Requirements of Contracts

Payment Methods:
- Out of Pocket or Savings: The lower tier can finance the contract costs directly.
  - Thoughts: This method may limit financial exposure and maintain control over costs.
- Insurance Policies: They can purchase insurance to cover part of the contract.
  - Thoughts: This approach can mitigate risk but requires understanding the policy terms.

Contractual Risk Transfer

Definition: Contractual risk transfer involves moving the risk of potential liabilities from one party to another.
- Additional Info: This is essential in construction, where the general contractor remains liable for subcontractors' actions.
- Vicarious Liability: A principle where one party can be held responsible for another's actions.

Contract of Insurance

Definition: According to P.D. 612, insurance contracts indemnify against loss or damage from unknown contingencies.
- Thoughts: Understanding the conditions under which indemnity is provided is crucial for policyholders.

Principles Applying to Insurance Contracts

Principle of Indemnity: Provides compensation for losses without allowing profit from insurance.
- Thoughts: Ensures that the insured is restored to the financial position prior to the loss.
Rules of Insurable Interest: The policyholder must have a stake in the insured asset.
Limiting Recovery: Recovery is typically limited to actual cash value.
Subrogation in Insurance: Insurers can claim damages post-indemnification.
Doctrine of Adhesion: Policies are drafted by insurers, leading to take-it-or-leave-it contracts for consumers.
Personal Contract: Insurance contracts are personal and non-transferable without insurer consent.
Doctrine of Utmost Good Faith: Both parties must deal honestly and disclose all relevant information.

Conclusion

These principles and methods of contractual risk management are fundamental in the insurance domain, especially in protecting financial interests in various transactions. Understanding the balance of risk and reward is essential for effective insurance utilization.

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Notes on Risk Management and Stakeholders

Risk Retention

Definition: Risk retention refers to the practice where companies decide to keep certain risks instead of passing them on to an insurer.
Explanation: Companies might form their own reserve funds to manage risks they are financially equipped to handle.
Consideration: Before opting for risk retention, it’s essential for companies to evaluate their capability to manage potential financial impacts.

Collaboration with Stakeholders

Importance of Stakeholders: Engaging stakeholders, who can significantly affect or be affected by decisions, is critical in risk management strategies.
Do's and Don'ts: Effective planning mandates that all stakeholders must be included in discussions to avoid future implementation issues.
Outcome of Exclusion: Ignoring stakeholders may lead to misguided strategies, ultimately rendering plans ineffective.

Classification of Stakeholders

Types of Stakeholders:
- Internal Stakeholders: Those with a direct relationship with the company.
  - Examples: Employees, owners, and investors.
- External Stakeholders: Individuals or groups outside the management structure who are affected by its actions.
  - Examples: Local government, tourists, and guests.

Summary Table of Stakeholder Classification

Type	Description
Internal Stakeholders	Direct relationship with the company
External Stakeholders	No direct relationship but affected by company's actions

Stakeholder's Issues

Conflict of Interests: Stakeholders often have competing interests, which can complicate decision-making.
Risk Management's Role: It is crucial for risk managers to navigate these conflicts and find common ground to formulate a cohesive action plan.

Key Thought

Understanding the dynamics between internal and external stakeholders helps in devising effective risk management strategies, ensuring that all voices are heard and considered in decision-making processes.

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Notes on Risk Management in Tourism

Personal Protective Equipment (PPE)

Head protection
- Importance: Prevents head injuries from falling objects or accidents.
- Examples: Helmets, caps, hoods, and hats.
Working from heights
- Importance: Ensures safety during tasks performed above ground level.
- Tools: Harness and fall arrest devices.
Skin protection
- Importance: Protects skin from sun-related injuries and harmful substances.
- Examples: Sunburn cream, long-sleeved clothing, and protective clothing for hazardous tasks.
Other personal protective equipment
- Importance: Specific equipment needed for various tasks.
- Examples: Disposable clothing for working with chemicals, lead aprons for x-ray protection, and thermal clothing for cold environments.

Risk Transfer

Definition: A method of managing risks by shifting the burden from one party to another.
Key Aspects:
- Involves contractual agreements which allocate risk responsibilities equitably.
- Parties involved share the risk based on their ability to control or insure against it.

Techniques of Risk Transfer

Outsourcing
- Definition: A strategy where a business delegates certain processes to third parties.
- Considerations: Size of organization and budget significantly influence outsourcing decisions.
Derivatives
- Importance: Financial instruments used to manage risk exposure but require thorough understanding to deploy effectively.
Contracts
- Importance: Legally binding agreements that define responsibilities and expectations, essential for effective risk management.
Insurance
- Importance: Protects entities from significant financial losses due to unforeseen events.

Summary

Risk management in the tourism industry involves the use of PPE to protect workers from injuries and effective risk transfer methods to minimize financial exposure. Tools such as outsourcing, derivatives, contracts, and insurance play critical roles in managing risks associated with the tourism sector.

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The Case of Boracay

Closure of Boracay Island

Context: President Rodrigo Duterte ordered the closure of Boracay Island for six months starting April 26.
- Thoughts: This decision likely stems from the need to address significant environmental issues.
- Additional Information: The loss of tourism revenue can have extensive economic repercussions for the local community.
Reason for Closure: The closure is attributed to worsening environmental issues, particularly sewage conditions.
- Thoughts: Poor sewage management can lead to serious public health risks and environmental degradation.
- Additional Information: Rehabilitation efforts might include improving sewage infrastructure and sanitation practices.

Use of Safety Devices

Importance: Understanding risks involved in tourism is essential for students in the hospitality management field.
- Thoughts: Safety devices can enhance tourists' experiences and encourage more visitors, benefiting the local economy.
- Additional Information: Familiarity with safety measures can influence tourist satisfaction and retention.

Study Findings (Milman, Jones, and Back, 1999)

Research on Safety and Security: Examined the feelings of Central Florida tourists regarding safety.
- Thoughts: The perception of safety is crucial for tourists; it can dictate their overall experience and choices.
- Additional Information: The presence of physical security measures can significantly influence tourists' comfort levels.

Types of Safety Devices

Overt Safety Measures: Defined as visible physical safety measures in industries.
- Thoughts: Overly strict safety measures may paradoxically deter tourists, suggesting a balance is necessary.
- Additional Information: Tour operators must navigate the fine line between ensuring safety and maintaining an inviting atmosphere.

Personal Protective Equipment (University of Western Australia)

Type of Protection	Examples
Respiratory protection	e.g., disposable, cartridge, airline, half or full face.
Eye protection	e.g., spectacles, goggles, shields, visors.
Hearing protection	e.g., ear muffs and plugs.
Hand protection	e.g., gloves and barrier creams.
Foot protection	e.g., shoes/boots.

Thoughts: The enumeration of protective equipment highlights the importance of safety in tourism-related activities.
Additional Information: Implementing appropriate protective gear can reduce accidents and enhance tourists' experiences.

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Notes on Insurance Principles and Terms

Exceptions to the Principle of Indemnity

Life Insurance:
- Life insurance is unique because the value of a life cannot be quantified in the same way as property. The insured cannot simply be placed in the same financial situation after loss, making life insurance a different category of contract.
- Thoughts: This highlights the emotional and personal significance of life, which is intangible and not directly replaceable.
Replacement-Cost Insurance:
- This type of insurance guarantees that the insured will receive the full costs of repairs or replacements without deducting for depreciation.
- Additional Info: It ensures the insured can restore their property to its original condition without financial loss from depreciation.
Valued Insurance Policies:
- These policies state a limit of liability agreed upon before the insured's total loss happens.
- Thoughts: Valued policies offer certainty and clarity regarding coverage limits, which can be crucial for planning financial security.

Insurable Interest

Definition: Insurable interest refers to the financial stake an individual or entity has in the insured asset. It must exist at the time of the insurance contract.
Importance: The principle of insurable interest protects against moral hazard by ensuring that the insured has something to lose.
Example: Individuals can obtain insurance on a property even if they do not own it, provided they can demonstrate a financial loss if the property were damaged.

Actual Cash Value

Definition: Actual cash value (ACV) is calculated as the replacement cost minus depreciation of damaged or stolen property at the time of loss.
Key Insight: It represents the value that the property could be sold for, which is usually less than the replacement cost.
Example: If a person had a 5-year-old television that cost $1,000 new but has depreciated to$ 400 in value, the actual cash value at the time of loss would be $400, influencing the claim amount received.

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Notes on Tourism Development Collaboration

Importance of Collaboration in Tourism Development
- The text emphasizes the necessity of collaboration among stakeholders to foster sustainable tourism development.
- Thoughts: Effective collaboration leads to more comprehensive tourism products that incorporate local insights and resources, contributing to a more meaningful experience for tourists and residents alike.
Role of Residents in Tourism Development
- The empowerment of residents is critical. Their participation ensures that tourism aligns with local values and desires.
- Additional Info: By involving residents, tourism can enhance the community's socio-economic conditions, leading to a more balanced approach that benefits all parties.
Finding a Balance Between Various Stakeholders
- The study highlights that tourism activities must complement traditional local activities to enhance resource use.
- Thoughts: It's crucial for stakeholders, including businesses and local authorities, to understand and respect the local culture and practices to ensure tourism does not overshadow them.
Dependability on Communication and Cooperation
- Citing Uran and Juvan (2010), the dependability of successful tourism development relies on effective communication and cooperation among all stakeholders.
- Additional Info: This suggests that regular stakeholder meetings and inclusive decision-making processes can lead to better outcomes in tourism initiatives.
Case Study in Gadara, Jordan
- Alobiedat's study indicates that tourism in Gadara did not significantly improve the local economy or living standards, highlighting the need for sustainable development practices.
- Thoughts: This raises concerns about the effectiveness of tourism if not managed properly. It underscores the importance of aligning tourism goals with community needs.
Coordination Challenges in Turkey
- Burnaz, Kurtuldu, and Akyuz (2017) point out that a lack of coordination among stakeholders hinders tourism effectiveness in Turkey.
- Additional Info: This reinforces the idea that destination management organizations are crucial for streamlining communication and fostering collaboration.
Need for Further Research on Stakeholder Collaboration
- The text concludes with a call for more attention to stakeholder collaboration as a key component of tourism competitiveness, referencing the work of Faitmath (2015).
- Thoughts: Studying stakeholder dynamics can inform best practices and strategies that promote both tourism growth and community well-being.

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Notes on Preventive Strategies and Risk Management

Key Concepts

Preventive Strategy:
- Designed to lessen the possibility of risk impact before it becomes realized.
- Involves anticipating uncertainties and planning accordingly to mitigate potential risks.
Contingency:
- Focuses on addressing risk at the moment an event occurs (the time of the risk happening).

Risk Management Categories

Risk managers generally categorize their approaches into four main strategies:

Risk Avoidance:
- This refers to eliminating any risk by avoiding activities that carry potential dangers.
  - Thoughts: While this might seem the safest approach, it can also hinder business opportunities and growth due to excessive caution.
Risk Reduction:
- Aimed at minimizing potential risks when they cannot be completely avoided.
  - Ideas: This might include implementing safety measures, staff training, or improving protocols.
Risk Transfer:
- Involves shifting the risk to a third party, often through insurance or outsourcing.
  - Additional Info: Effective for financial management, but it doesn’t eliminate risk entirely.
Risk Retention:
- Accepting the risk when it is above a specified threshold that is deemed manageable.
  - Considerations: This requires confidence in risk assessment and potential impact.

Examples of Risk Management in Tourism

Seasonal Employment Risks:
- During peak tourism seasons, management should carefully consider the hiring of seasonal employees, as issues may arise from inadequate experience or knowledge.
Disaster Risk in Tourism:
- Examples include the tacit understanding in tourism about potential hazards, such as cancellations during severe weather.

Historical Incidents

MV Doña Marilyn Incident (1988):
- Sank during Typhoon Unsang, leading to approximately 389 deaths and only 147 survivors.
- Context: Highlights the critical importance of preemptive risk strategies in maritime operations and tourism.
Asean Music Festival Incident:
- Event was called off due to overcrowding and unruly concertgoers, which resulted in injuries.
- Reflection: Organizations need to recognize when to cancel events to prioritize safety and avoid larger crises.

Conclusion

Understanding and implementing effective preventive strategies and risk management practices is crucial for businesses, especially in the tourism industry, where unforeseen events can lead to catastrophic outcomes.

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Notes on Risk Management

Key Issues in Risk Identification

The cause of the event
- Understanding the underlying reasons for an event is crucial to risk management. This helps in diagnosing potential problems before they manifest and enables better preparedness.
Areas of impact
- Identifying which parts of the organization will be affected by a risk event is essential. This can help prioritize responses and allocate resources efficiently.
Enablers
- These are factors that may contribute to the occurrence of risks. Recognizing enablers allows organizations to mitigate risks effectively by addressing the root causes.
Events
- Specific occurrences that can lead to risk events should be clearly defined. This helps in understanding their implications and anticipating potential issues.
Potential consequences
- Assessing the possible outcomes of risk events is necessary for comprehending their overall impact. Organizations can plan better by understanding both high and low potential impacts.

Importance of a Risk Management Plan

A robust risk management plan is critical for minimizing the likelihood of negative impacts on tourism activities. By analyzing potential risks, organizations can create strategies to deal with high and low-risk situations effectively.
The plan involves identifying risks, determining their impact, and outlining strategies to mitigate these risks. Such preparation helps in avoiding project derailment and achieving organizational objectives.

Summary

The outlined issues provide a foundational framework for approaching risk management. Organizations should focus on understanding various aspects of risks to better prepare and respond to potential challenges. By integrating these elements into their risk management strategies, organizations can enhance resilience and achieve better outcomes.

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Factors in the Identification of the Nature of Impending Risks

Reason for the happening of the risk
- Understanding the root cause is essential in risk management. This helps in developing targeted strategies to mitigate the risk. For instance, if the risk is due to a natural disaster, proactive measures can include preparedness drills and building infrastructure that withstands such events.
Frequency of the occurrence of the risk
- Knowing how often a risk occurs allows organizations to prioritize their resources effectively. If a risk is frequent but manageable, it may warrant different strategies compared to a rare but catastrophic risk.
Duration of the risk
- Risks that are prolonged or persistent can have more significant impacts compared to short-term risks. For example, long-lasting economic downturns may require ongoing adjustments in operational strategies.
Speed of onset
- The rapidity with which a risk can materialize affects response strategies. For instance, a sudden outbreak (like a pandemic) demands immediate action plans, whereas gradual risks can be planned for over time.
Scope and impact
- Understanding how widespread the risk is and the severity of its effects is crucial. A local risk might call for a localized response, while national or global risks require collaborative efforts and potentially more substantial resources.
Potentialities to destroy
- Evaluating the potential for damage informs risk prioritization. High-impact risks necessitate more robust mitigation strategies.
Criteria for determining the necessity of risk treatment
- This involves evaluating whether the potential impacts justify the costs of implementing risk management strategies. Organizations must weigh the benefits against the risks when deciding on interventions.
Criteria which is acceptable and tolerable
- Establishing thresholds for risk tolerance assists organizations in decision-making. Understanding what levels of risk are acceptable can guide policies and practices effectively.
Whether the combinations of the negative and positive risks will be considered
- It's important to consider the interplay of risks. Some risks may have mitigative effects on others, creating a more complex risk landscape.
How the combinations of risks will be considered
- Strategic planning should account for how different risks might compound or interact. This holistic approach can lead to more resilient risk management frameworks.

Concepts of Inherent and Residual Risk

Inherent Risk
- This type of risk indicates the exposure associated with an activity in the absence of any controls. Understanding inherent risk helps organizations identify vulnerabilities and areas that require attention.
Residual Risk
- After risk management strategies have been implemented, residual risk is what's left. It's essential for organizations to assess this to ensure that they are not exposed to unacceptable levels of risk post-intervention.

These notes highlight the framework for identifying risks and developing strategies to address them in a systematic manner, crucial for effective risk management in various fields, including tourism and business operations during crises like the COVID-19 pandemic.

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Notes on Insurance Principles

Principle of Subrogation

Definition: This principle allows an insurer to step into the shoes of the insured to collect a debt owed by a third party after fulfilling a claim.
Implication: Subrogation helps the insurer recover costs from the responsible party, promoting accountability among third parties.
Exceptions:
- It does not apply to life insurance policies, as these are not contracts of indemnity.
- Life insurance is based on the loss of life rather than the insured's negligence.

Principle of Adhesion

Definition: Refers to contracts where one party has significantly more power over the terms than the other, typically seen in insurance contracts.
Impact: This imbalance gives the insurer an advantage, requiring courts to interpret ambiguous language in favor of the insured.
Context: Often involves "fine print" contracts that consumers must accept without negotiation.

Personal Contract

Nature of Insurance Contracts: Unlike other contracts, insurance contracts are personal and cannot be freely transferred.
Importance: Each party in an insurance contract has a vested interest in the character and conduct of the other, which affects trust and agreement terms.

Doctrine of Utmost Good Faith

Explanation: This doctrine obligates both parties to act honestly and fairly, not only the insured but also the insurer.
Relevance: The insurer's position gives them a dominant bargaining power, which heightens the expectation of good faith in transactions.
Consequence: Failure to uphold this doctrine by either party can compromise the contract and claims.

Summary

These principles highlight the intricate relationship between insurers and insured parties, emphasizing the importance of fairness, clarity, and accountability in insurance agreements. Understanding these concepts is vital for anyone entering into such contracts, particularly in the fields of tourism and hospitality management.

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Notes on Adventure Tourism Safety and Research

Incident Report

Accident Summary: A 59-year-old Swedish national was electrocuted at a resort in Panglao on March 21, 2018, after stepping on a live wire while walking with his girlfriend.
- Thoughts: This tragic incident highlights the importance of safety protocols in tourism facilities. Resorts must ensure that all electrical sources are properly maintained and accessible areas are safe for guests.
- Additional Information: The victim was pronounced dead at a hospital after efforts to revive him failed. This indicates a severe lack of safety measures that could have prevented the accident.

Police Report Findings

Circumstances of the Accident: The couple fell after coming into contact with a live wire while walking on a pathway.
- Thoughts: This raises questions about the maintenance of public areas in tourist resorts and the necessity for regular safety inspections.
- Additional Information: The investigation revealed that a circuit breaker had been turned off, which might indicate negligence in maintaining basic safety standards.

Research Insights

Study Overview: Conducted by Bentley, Page, and Laird (2000) involving 142 New Zealand adventure tourism operators.
- Incident Rates: High injury rates were linked to activities involving risks from moving vehicles, equestrian activities, and water sports.
  - Thoughts: It’s crucial for adventure tourism operators to develop comprehensive safety protocols tailored to high-risk activities.
  - Additional Information: Activities like mountain biking and white-water rafting can result in serious accidents, emphasizing the need for rigorous training for both staff and clients.

Conclusion Recommendations

Policy Review: There is a necessity for policymakers to extend codes of practice across various adventure tourism activities.
- Thoughts: This could lead to improved safety legislation, which is crucial for protecting both tourists and operators.
- Additional Information: A thorough policy can minimize risks and standardize emergency procedures, making the sector safer overall.
Further Research: More studies are needed to understand tourism-related injuries better, particularly concerning overseas visitors.
- Thoughts: Gathering more data can help tailor safety protocols specifically for international clientele who may be unfamiliar with local risks.
- Additional Information: Research can focus on specific activities that lead to injuries, helping to implement targeted safety measures.

Responsibility Discussion

Accountability: While the responsibility may fall primarily on the tourism operator, guests also share part of the accountability for their safety.
- Thoughts: Educating guests about potential risks and ensuring they are aware of their surroundings can significantly enhance safety.
- Additional Information: Operators should provide clear guidelines and emergency instructions to mitigate risks and encourage proactive guest behavior.

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