Risk Management in Tourism Ventures

Abstract Purpose This chapter aims to present the key issues and main aspects of risk management (RM), as they relate to tourism entrepreneurship, with a focus on the RM plan and the various strategies used in controlling risks. Methodology/approach Literature review was conducted and managerial issues and aspects regarding RM in tourism entrepreneurship were highlighted. These issues were illustrated by one example and two case studies from the business world. Findings This chapter suggests that every probable risk must have a pre-formulated plan to deal with its possible consequences. In the field of tourism entrepreneurship, the elimination of risk by putting safety measures in place is not simply achieved by taking precautions in a haphazard manner. Rather, these tasks require a proactive approach, an intricate and logical plan. Research limitations This chapter is explorative in nature, based on a literature review and case study analysis. It takes more entrepreneurial/practical than academic approach. Managerial/practical implications This chapter provides RM process as a generic framework for entrepreneurs/managers in the identification, analysis, assessment, treatment and monitoring of risk related to their business ventures. It also suggests the appropriate steps to follow to efficiently managing risks. Every tourism enterprise should have a strategy and an emergency/contingency plan to address risks. Originality/value This chapter outlines, in a comprehensive and practical way, a strategic approach to risk management for the tourism enterprises. It also highlights the importance and utility of planning and implementing of a suitable strategy to effectively address business-related risks.