Risk Management in the Tourism Industry

Risk Management in the Tourism Industry: Legal, Ethical, and Sustainability Dimensions


Risk management is considered as the process of identification, Access and controlling threats to earning and capital of an organisation. Risk management also assesses different aspects of threats and risk, which is widely related to the tourism industry. Risk management focuses on financial uncertainty, legal abilities, strategic management errors, and natural disasters. the importance of risk management in the tourism industry focuses on accessing several potential risks before an event occurs. The risk management aspect also helps a particular industry establish procedures to avoid the threats and minimise the impact so the results can be coped up with. Risk management helps the tourism industry understand how to manage a risk when it occurs and evaluate the issues from the unforeseen events to mitigate the negative effects on the industry. This analytical essay aims to evaluate risk management aspects and focus on the importance of risk management in the tourism industry by looking into real-life examples. This essay argues that risk management is important in the tourism industry and has legal, ethical, and sustainability dimensions.  The overview of this essay focuses on the description of a case taken in this scenario through which the legal dimension, sustainability, and ethical dimension of risk management will be accessed with the given scenario on the tourism industry.

Description of the case

Risk management in the tourism industry is important, and for looking into different types of implications, a real-life example has been taken in this analytical essay. A real-life example was the attack on September 11th 2001. The location was New York in the United States. On September 11th, also known as the 9/11 attack, a series of airline hijackings and different aspects related to suicide attacks was committed by 19 militants associated with the extremist group al Qaeda. This target was done for the United States, and the deadliest terrorist attack was seen on the soil of United States history (Mikulić et al., 2018). The attack was made against New York City and Washington DC, and there was death and destruction, which triggered the United States. More than 2700 people were killed in New York, and there were many people who were hurt and injured for this attack. According to Gstaettner (2017), one of the most important factors that this incident has done to tourism is to imply several legal and ethical obligations for the tourists. The risk in this factor was not mitigating it at first, and that is why the risk management processes were employed to reduce the impact of the incident.

The legal dimension of risk management

Risk management is considered the process that was designed to offer a general framework to the tourism industry and for the real-life example taken in this scenario related to the 9/11 attack on the United States. The legal dimension of risk management is related to liability, which is considered one of the most important issues in risk management where the acceptances of damages, and their loss resulting from different accidents and omissions, are obligated. The legal implication results due to the lack of observation in the given scenario, which was the 9/11 attack on the United States. When one incident is involved in the hospitality industry, it is important to take different aspects of notes related to the responsibility of the actions as well as the organisation for liability (Amirudin et al., 2017). In this case scenario, more than 2700 people were injured and killed in the United States because of the action that has been seen on September 11th 2001. According to the legal implication of this event is affecting the people who are the tourists of United States, and if they are injured or hurt in some manner, it is the liability of the United States or the tourism industry to look after the factor.

It can easily be seen that due to the booming and chaos that the group of al Qaeda created in 2001 September, there were many people who were hurt, and many tourists also were affected, and that implies a legal dimension on the tourism industry. In the legal dimension of risk management for the tourism industry, the duty of care is another form of issue in tourism that can be evaluated in this scenario for real-life example (Tsai & LinLiu, 2017). There are different relationships which are existing between the guests, the hotels or the tour guides. The aftermath focuses on the translation of concerned parties in different types of pleasing to measure the preventing disaster in case the foreseeable room for the catastrophic is not present. By getting the information from this case of the 9/11 attack on the United States, the attack and the loss of life was not predicted, and that is by the duty of care, and the tourism industry should evaluate different dimensions of legal issues because it affects the expectation of the people as well as services and products (Martinez et al., 2020). The tourism industry should also consider another legal concept and framework necessary for this scenario, also known as negligence. Negligence is the legal code that is evaluated for the lack of doing or taking reasonable actions and steps in different aspects of a situation where reasonable action is required (Thach & Phuong, 2017). By looking forward to the example of a real-life scenario, there were certain aspects of negligence that could be noticed, and for this, the tourism industry or a particular business should be taken forward by ethical and sustainable issues. There is a study conducted by MARKOVA (2018) shows that negligence should not affect the tourism industry. The study cannot be considered as important in this scenario because there are a few limitations that prove that negligence is considered a reasonable legal code for legal dimensions at risk management (Martinez et al., 2020). In this scenario, it could be seen that illegal dimension of risk management for the tourism industry and also by evaluating the 9/11 attack on the United States, it could be seen that there are codes that the tourism industry has to consider.

The ethical dimension of risk management

The ethical dimension of risk management focuses on the primary fundamental rights of human conduct through which the reference of ethical and dealing factors of honesty and prudence are found. In this scenario, openness avoidance of suffering, dignity and goodwill also seems to connect with each other. In this scenario, the ethical dimension in risk management and the 9/11 attack that has been seen as the guiding principles focus on the actions of the crew in this circumstance, looking forward to the appropriate way to go forward (Tsai & LinLiu, 2017). The authors and writers have seen several aspects of proof through which the process shows respect for other individuals and group privileges and gets the right action to defend others from harm, including several types of activities retaining with empowerment as well as the freedom to act on their will (Chen et al., 2018). There are different aspects of observation in basics that mention the leads to synergy in the factor of administration in the tourism industry where the human resources in this particular industry focus on risk management and resources.

According to  Shenoi et al.. (2018), the organisations do not follow or lay down different types of rules to adhere to the moral ethics in their operations, but there are different types of possibilities through which serious issues arise and also affect the organisation, including the risk of moral values damage related to honesty responsibility as well as accountability and reliability (Martinez et al., 2020). In this regard, business ethics lead to different aspects of establishment in the moral philosophy of the organisation, and in this scenario, the incident that took place affected the hospitality industry by observing the behaviour values and norms and guiding the organisation in the society (Tsai & LinLiu, 2017). By looking forward to the factors in interest, the whelping of the people is the main concern in risk management and the impact of risk that can be seen through the customer’s suppliers as well as the employees who are part of the stakeholders. In this particular dimension, there is also another crucial factor, known as the ethical gap, and this ethical gap defines the variance of risks that are noticeable and expensive (Shenoi et al., 2018). This aspect of the ethical gap focuses on the tolerable risk, and in this scenario, the ethical risk was with the values and principles of two groups. One group word was there to attack, and another group was there to defend themselves and on whom the attack was being seen.

In this scenario, the ethical gap or ethical dilemma occurs with tolerable risk in the tourism industry through which the discovery is lowered and different types of risks falling the bracket to the tolerable and not such tolerable options (Shenoi et al., 2018).  In this scenario, there are certain aspects to minimise that also eliminate different types of tolerable risks show which discoverable risk, as well as minimisation of level, affording their risks correspondence with certain noticeable risks (Chang et al., 2020). An example can be taken by this particular attack where another group came and injured a certain number of people as well as killed many people and also destructed much property, and in this particular scenario, the risk exposure in the tourism industry has taken a solid aspect for the individual and the organisations (Tsai & LinLiu, 2017).  Therefore it can be seen that risk management and morally updates rights or ethics come together with a tendency good hand in hand.

Sustainability dimension of risk management

Sustainability in the hospitality industry focuses on an interpretation that is constructed within the obligations of business instead of the obligation to sustainability, which is an ongoing process. The sustainability aspect focuses on risk management which is not exclusively agreeable in different types of issues related to common characteristics because looking forward to the future, the focus is given on the unpredictability in any industry but in the hospitality industry and given to the scenario of the 9/11 attack there were certain sustainability issues in the tourism industry that could be seen. Sustainability risk management is interconnected with the social responsibility risks as well as the environmental risk, which was not adhered to in the 9/11 attack of September (Demir & Guler, 2021). In order to focus and work with the relationship of environmental, social responsibility, it is important to utilise the risk management principles of the business in the tourism industry. For example, suppose the tourism industry has a culture of sustainability and strengthening of different aspects related to alignment in the understanding of the risk that comes with business strategy. In that case, that particular aspect of the industry will survive. Sustainability seeks to incorporate the aspect of contending objectives and balance different environmental economies and social elements in the industry (Toom, 2018). All these factors were not balanced when the attack took place. That is why the sustainable factors or dimensions in the tourism industry and in risk management should be considered important and have a serious reflection of the future on the way of unpredictable thinking. Sustainability risk management in this scenario also focuses on the strategies of a particular place for creating future business opportunities. After these attacks, the future business opportunities for tourism were something to be concerned about (Mikulić et al., 2018).

Creating business opportunities and also adding sustainability into the factor of risk management will also result in increasing the better control and measure (Toom, 2018). According to Demir & Guler (2021), it is important to attain different types of possibilities of risk and evaluate the impact on risk management. For example, in this scenario, when the 9/11 attack took place, many people were injured, and many destructions were seen, and the loss of property, animals and people was also added to the already destructed scenario. This is why the aftermath was not great, and according to many authors, the organisations and the industry had to learn a way to mitigate the future crisis by adding certain prepared plans for the risk that could take place (Toom, 2018). It is also important for the tourism industry to focus on the incident that might occur and also mitigate different types of strategies and future prevention that will help all the observations in the integration of risk management (Mikulić et al., 2018). Sustainability brings out and measures different controls to the provision of higher level and also ensures that the industry runs in a proper manner for a feasible and sustainable way.


The main aim of this analytical essay was to evaluate different aspects of risk management, and this essay had also focused on the importance of risk management in the tourism industry. This essay had also argued that risk management is a certainly important part of the tourism industry that had several aspects of importance related to sustainability, ethical and legal dimensions. Therefore this essay has deeply demonstrated understanding of ethical responsibilities and dilemmas that are considered with real-life examples in risk management. The tourism industry has also been evaluated in this scenario by looking forward to the relevant risk management codes with legal responsibilities. In conclusion, it can be said that effective discussion has been noticed in this I say with implications of several dimensions by looking forward to the comprehensive knowledge and deep understanding of risk management with it’s important in tourism.