The analysis of the risks assumed by the entrepreneurs in tourism industry
The analysis of the risks assumed by the entrepreneurs in tourism industry

Summary/Abstract: Risk management and risk assessment have become, and will remain an important component of how any business operates in the tourism industry. In the tourism industry there are many situations where the risk becomes outrageous disasters or dangerous events, and this leads to lower performance and slower business development. This paper aims to show that tourism destinations and small entrepreneurs can easily overcome and manage the four stages of a crisis by implementing the theory of the four R: Reduction, Readiness, Response and Recovery. The increasing exposure to different risks such as political, economic, social and not least the technologic risks has led to the need to implement an active management in the tourism industry. The most effective crisis management is the one that manages to identify on time the problem areas and takes action before the cumulative risks to turn into a growing crisis. The 4R Theory, suggests such a pattern through which all the crisis management strategies should be updated and improved continuously in order to demonstrate the efficiency and effectiveness of such a tool in an era of globalization in which the risks have become a subject of this globalization, getting a global perspective. The paper also states that although crises and disasters can not be stopped, their impact can be limited through effective management strategies; therefore in favour of this statement a study case was realized for a number tourism agencies, in Cluj Napoca, related to risks management. It concludes with the idea that although there is great difficulty in responding to risk generating chaotic situations, they are an important part of risk management in both public and private sectors and should be taken into account in the management of modern tourism.

• Details
• Contents