Risk management for small and medium sized incoming tour operators

Shown at the example of Skylimit Travel S.A., Isla Margarita, Venezuela

Bachelor Thesis , 2009 , 140 Pages , Grade: 1,7

Tourism - Miscellaneous

The paper introduces the reader to the concept of Enterprise Risk Management, its aims and utility. The goal of the paper is to encourage readers working in small- to medium sized enterprises in the tourism industry to be more conscious of risks faced by their organisation and to give those readers an example of how, with a comparatively low level of effort, Risk Management procedures might be implemented for their enterprise. To that end the attempt is made to develop a simplified risk management system for small- to medium sized enterprises in the tourism industry based on the Committee of Sponsoring Organizations’ “Enterprise Risk Management – Integrated Framework”.

Inhaltsverzeichnis (Table of Contents)

• Introduction
• Statistics used throughout the paper
• Detailed Company Statistic Arrivals / Products / Departures April 2005 - March 2008 (CS-APD)
• Company Statistic Passenger Totals by Source Market, Jan 2001 - Dec 2007 (CS-PSM)
• Government Statistic Monthly Arrivals to Nueva Esparta by Transportation Type (Air/Sea) Jan 2001 - Dec 2006 (GS-ANE)
• Common Measures
• The Company
• History
• Current Situation and Products
• The Main Destination - Venezuela
• Overview
• Main geographical Areas of Activity for Skylimit Travel S.A
• The Home Port Nueva Esparta
• Overview
• The Touristic Value Chain and the Companies Position in it
• Characteristics of seasonality
• Risk Management
• COSO's Enterprise Risk Management - Integrated Framework
• Risk Management for SMEs
• Internal Environment
• Objective Setting
• Event Identification
• Risk Assessment
• Risk Response
• Control Activities
• Information and Communication
• Monitoring
• Summary

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This paper aims to introduce the concept of Enterprise Risk Management, its goals, and its usefulness. It encourages individuals working in small- to medium-sized tourism enterprises to become more aware of the risks their organization faces and provides an example of how Risk Management procedures can be implemented with minimal effort. The paper focuses on developing a simplified risk management system for small- to medium-sized enterprises in the tourism industry, based on the Committee of Sponsoring Organizations' “Enterprise Risk Management - Integrated Framework”.

• Enterprise Risk Management in the tourism industry
• Risk management for small and medium-sized enterprises (SMEs)
• The application of the COSO framework to tourism businesses
• Practical implementation of risk management procedures
• The importance of stakeholder value and corporate governance in risk management

Zusammenfassung der Kapitel (Chapter Summaries)

The introduction sets the stage by discussing the importance of risk management in decision-making, tracing its historical development from early insurance practices to the modern holistic approach. It highlights the significance of stakeholder value and corporate governance in shaping current risk management practices.

The chapter on statistics provides an overview of various data sets used throughout the paper, including detailed company statistics on arrivals, products, and departures, passenger totals by source market, and government statistics on monthly arrivals to Nueva Esparta by transportation type. These statistics offer valuable insights into the company's operations and the tourism landscape of the region.

The chapter on the company provides a comprehensive profile of Skylimit Travel S.A., including its history, current situation, products, and main destination - Venezuela. It delves into the overview of the main destination, highlighting the main geographical areas of activity for the company. The chapter also explores the home port of Nueva Esparta, its overview, the touristic value chain, and the company's position within it. Finally, it discusses the characteristics of seasonality in the region.

The chapter on risk management introduces the COSO framework, a widely recognized framework for enterprise risk management. It then focuses on adapting the framework to the specific needs of SMEs, examining each element of the framework in detail: internal environment, objective setting, event identification, risk assessment, risk response, control activities, information and communication, monitoring, and a summary of the process.

Schlüsselwörter (Keywords)

The key terms and concepts explored in this paper include: Enterprise Risk Management (ERM), Risk Management, tourism industry, small and medium-sized enterprises (SMEs), COSO framework, stakeholder value, corporate governance, risk identification, risk assessment, risk response, control activities, information and communication, monitoring, and seasonality.

• College: Stralsund University of Applied Sciences
• Course: Leisure and Tourism Management
• Grade: 1,7
• Author: BBA Stephan Weidner (Author)
• Publication Year: 2009
• Pages: 140
• Catalog Number: V145466
• ISBN (eBook): 9783640561940
• ISBN (Book): 9783640561896
• Language: English
• Tags: risk management, SME, KMU, Venezuela, Tourismus, Tourism, Risiko Management