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January 2010. Integrating Business Skills into Ecotourism Operations – Focusing on Health, Safety and Customer Care from Risk Management Perspectives. Brien Chan, Workforce Strategies Practice Leader, Marsh Risk Consulting, Asia. Global Hospitality Risk Report.

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january 2010
January 2010

Integrating Business Skills into Ecotourism Operations – Focusing on Health, Safety and Customer Care from Risk Management Perspectives

Brien Chan, Workforce Strategies Practice Leader,

Marsh Risk Consulting, Asia

global hospitality risk report
Global Hospitality Risk Report
  • “Every day, the hospitality and gaming industry faces a new and growing world of risk. Pressures from the marketplace and the global political landscape only add to perennial issues from labor shortages and food safety to construction risks, the emphasis on “going green” and skyrocketing operating costs.”

“This year will be no different.”

Janice L. Schnabel, Managing Director

Global Hospitality Risk Report – 2008

customers groups expectations risk perception
Customers Groups, Expectations & Risk Perception
  • Silvery Economy (Japan, HK, Taiwan, Sing’p, Korea, etc.)
  • School Excursion, (quasi-)Governmental Bodies Exchange
  • Adventurer (land-crusers), Backpacker, Individual Tours, Budget Travel
  • LOHAS – Life Styles from Health & Sustainability; Minimalism
  • Gap Year, Slow Travel, Volunteer, Working (WHS), Studying…
  • Young-generation (1977-94); X-game (extreme action sports)
  • Transborder; Cross Culture => Ethical Tourism
  • Responsible Travel
  • Safety & Security
can your organization find the right incentives
Can your organization find the right incentives?
  • 19% percent of the adults in the U.S., or 41 million people make purchasing decisions based on their personal, social and environmental values ( Lifestyles of Health and Sustainability Consumers, LOHAS, 2009)
  • 61% of Americans believe their travel experience is better when their destination preserves its unique natural, historic, and cultural sites. (TIA and National Geographic Traveler 2003)
  • 76% of consumers would switch brands if a company were associated with a good cause, when price and quality are equal. (TripAdvisor, 2007).
  • Certification systems, market campaigns, and corporate champions are driving a major shift in global corporate accountability on social and environmental issues. (Michael E. Conroy, 2008)
other risk issues might include
Other Risk Issues might include:
  • Intellectual property
  • Contract works (services providers)
  • Mergers and Acquisitions
  • Construction Cost (green bldgs)
  • Interruptions to power supply
  • Key person
  • Cost of insurance
  • Food Security
  • Employee Liability (agents)
  • Compliance
  • Professional Indemnity (ethical)
  • Property damage (fire, security)
  • Business continuity
  • Occupational health and safety
  • General Liability
  • Research and development
  • Pollution
  • Reputation/Branding
  • Natural hazards
  • Pandemics & Infectious Diseases (SARS, Swine Flu)
why risk management
Why Risk Management?

The major aims for businesses in managing risk are to...

Contain and reduce costs

  • Protect future earnings and reputation (local communities relationship)
  • Ensure governance and compliance

… and the organizations who achieve this are very good at managing risk.

purpose and rationale

Risk Retention with Knowledge

Risk Retention with Knowledge

Risk Transfer


Adequate Insurance

Risk Transfer


Adequate Insurance


Risk Avoidance


Risk Reduction

Purpose and Rationale

Risk Management ProcessA corporate function to manage risks associated with the operations

Difference between with and without a complete picture of risk exposures

risk management process
Risk Management Process



We Cannot Avoid

Not Effective

Business Continuity Management

Limited Insurance coverage

employee liability safety health
Employee Liability – Safety & Health
  • Poor accident records & environmental incidents
  • Court cases/litigation plus people awareness
  • Increase in post-accident management / rehabilitation cost
  • Stringent regulations on employee well-being protection
    • H&S, social accountable, contractor management
  • Hard insurance market on employee compensation - construction, fleet operations and healthcare workers
  • Good corporate citizen requirements
total cost of risk
Total Cost of Risk

Direct Losses

Indirect and Consequential Losses

(Hidden Costs of Accidents)

workforce strategies
Workforce Strategies


Pre & Post Accident Mgt

Behavior Risk Improvement

Absence Management

Stress Management

Employee Management

Claim Root Cost Analysis



Chemical Safety Management

Ergonomics Risk Assessment

Industrial Hygiene Monitoring

Indoor Air Quality Survey


Compliance Audit

Due Diligence

Environmental Assessment

Asbestos Management


Operational Audit

Construction Safety

Life Safety Audit

Process Safety Audit

System Safety

Fleet Safety Audit

Incident Investigation

Safety Management Training

workplace safety health management elements
Workplace Safety & Health Management Elements
  • Leadership & Administration
  • Management Training
  • Periodic Inspections
  • Task Analysis and S.O.P.
  • Incident Investigation
  • Task Observation
  • Emergency Preparedness
  • Preventive Maintenance
  • General Safety Rules
  • Special Permit Procedures
  • Incident Analysis
  • Ergonomics
  • Personal Protective Equipment
  • Health Controls
  • Engineering/Change Management
  • Personal Communications
  • Group Communications
  • General Safety/Health Promotion
  • Employment Practices
  • Procurement Controls
  • Off - The - Job Safety Promotion
  • Employee training
proactive reactive measures
Proactive & Reactive Measures
  • Proactive monitoring of compliance
    • routine basis, independent of any event
    • monitoring may be required by regulations
      • daily equipment checks
      • periodic review of hot-work permits
  • Reactive monitoring of accidents or incidents
    • in response to an event or trigger
      • accident investigation
      • monitoring in response to a complaint
management system check balance
Management System – check balance
  • Occupational Health & Safety Audits

- Safety Management System Audit - Regulatory

- OHSAS 18001 Audit - Voluntary

  • Risk Assessments

- Plant/equipment

- Manual handling

- Noise

- Hazardous substances

  • Policy & procedure development
  • Accident investigation
employee liabilities risk management
Employee Liabilities Risk Management

Four key elements drive your workers’ compensation costs

Improved performance in these areas will save you money

Safety Management

Implement effective management systems

Reduce claims incidence and severity

Injury Management

Develop an injury prevention strategy

Lower claims cost

Lower indirect costs

Insurance Management

Establish financial management procedures

Apply cost effective policy structures

Ensure policies are rated properly

Reduce premium spend

Claim Management

Access technical skill

Reduce claim duration

Reduce claim cost

general liability
General Liability
  • Life Safety –Third Party Liability (TPL)
  • Housekeeping – Property Damage (PD) & TPL
  • Fire Protection – PD
  • Electrical Safety – PD
  • Physical Security – TPL & PD
  • Infrastructure Inspection & Maintenance – PI, PD, TPL
  • Emergency Response & Planning – TPL
  • Image & Reputation - Uninsured
assessment of liability
Assessment of Liability
  • Statutory duty / liability
  • Contractual duty / liability
  • Common Law duty / liability
  • Contributory Negligence
  • Legal Liability v. Policy Liability
case studies lack of caution sign
Case Studies - Lack of Caution Sign


It is a common best practice for pools that are less than 8 feet deep and/or at shallow areas of pools to post a sign stating "No Diving" or "Diving Prohibited".

tear and wear of equipment outdoor playground
Tear and Wear of Equipment – Outdoor Playground


Frequent inspections should be scheduled to prevent injuries caused by sharp points, corners and edges, pinch crush and shearing points, protrusions or projections that could develop as a result of wear and tear, and damage on the equipment.

The Club should engage a certified playground inspector to conduct regular maintenance and renovate all play apparatus.

safety instruction local language
Safety Instruction (Local Language)


Currently, most notices in the club (e.g. swimming pool) are written in both English and Chinese. The Club may consider adding Chinese Safety Instructions.

warning sign spa pool
Warning Sign – Spa Pool
  • Recommendations:
  • It is a common practice to conspicuously post a Spa Pool Warning Sign in the immediate vicinity of the spa pool stating the following:
  • Persons who suffering from heart disease, diabetes, high or low blood pressure, should be prohibited from using the spa pool.
  • Do not use while under the influence of alcohol, anticoagulants, antihistamines, vasoconstrictors, vasodilators, stimulants, hypnotics, narcotics or tranquilizers.
  • Long exposure may result in nausea, dizziness or fainting.
  • Help can be obtained by using the telephone for contacting on-duty staff.
  • The club may consider adopting or adapting the common practice.
risk exposures liabilities
Risk Exposures & Liabilities

Property Loss Exposures

Business Interruption Loss Exposures

Golf Club



Food & Beverage


Liability Loss Exposures

  • Services Liability(Food Poisoning)
  • Workplace Safety
  • Third Parties Liability
  • Public Safety
  • Contract Mgt
  • Golf Cart Accidents
  • Grass Cutting
  • Property Liability
  • Automobile Liability
  • Public Safety
  • Environmental Liability (Sewer/Wastes)
  • Property Liability
  • Watercraft Liability
  • Environmental Liability (oil spill)
  • Property Liability
  • Professional Liability
  • Public Safety
fleet safety management system perspective
Fleet Safety ManagementSystem Perspective

1. Management

2. Operational Environments

4. Vehicle

3. Driver

5. Incident Reporting and Analysis