The adventure tourism firm Wilderness Expeditions Canada, which specializes in offering distinctive experiences in the Canadian wilderness, was presented in Part 1 of the business plan. A comprehensive risk assessment and management plan are essential to guaranteeing the business’s long-term prosperity and security. We shall recognize, evaluate, manage, and address the several risks connected to our endeavor in this part.
Identifying Risks
To ensure the safety and satisfaction of its clients, Wilderness Expeditions Canada is dedicated to reducing risks. These hazards can be classified into various categories associated with our business. Firstly, physical risks include the following: injury to participants so accidents can cause physical harm to participants in outdoor sports, including hiking, mountain biking, and kayaking (Huddart et al., 2019). Another physical risk is wildlife encounters; hence, there is a wide variety of species in Canada’s wilderness that run the risk of encountering potentially hazardous animals.
Secondly, material risks include the following: equipment failure, so mistakes or malfunctions with outdoor gear and equipment can result in accidents or injury. Another material risk is natural disasters, where avalanches, forest fires, and flash floods are just a few of the natural disasters that can occur in Canada’s wilderness, disrupting activities and endangering lives.
Additionally, financial risks, which include low demand, hence variations in the desire for adventure travel, may impact earnings. Also, operational costs since exorbitant running expenses, such as transportation, equipment upkeep, and guide pay, may affect profitability. Moreover, emotional risks include the following: Client dissatisfaction, thus unfulfilled expectations or worries about safety, might make clients unhappy. Also, employee burnout because the work is physically demanding, there may be a higher risk of employee burnout and turnover. Lastly, inherent and perceived threats that are part and parcel of adventure tourism include physical difficulties, coming across wildlife, and unfavorable weather (Tourism, 2022). Concerns and worries prospective customers may have about safety and environmental effects are known as perceived risks.
Assessing and Evaluating Risks
We can use RISK = PROBABILITY X CONSEQUENCE to analyze and evaluate hazards. Based on likelihood and impact, risks can be categorized using a risk matrix or chart. For instance:
1) High Probability and High Impact: Participants’ Injuries, Equipment Failure
2) Minimal Probability and Maximum Impact: Natural Catastrophes
3) High Likelihood and Minimal Effect: Low Demand and Burnout among Staff
4) Low Probability and Low Impact: Wildlife Sightings, Unsatisfied Clients
Applying Risk Control Techniques
Risk control strategies are crucial for hazards classified as having a high chance and high consequence, such as “Equipment Failure” and “Injury to Participants.” These methods involve minimizing losses and avoiding exposure. Exposure avoidance to reduce the chance of harm, put in place stringent safety procedures, thorough guide training, and equipment checks. Aim for seasonal changes to steer clear of peak times for natural disasters. Loss reductions, hence, invest in top-notch machinery to lower the risk of malfunctions. Construct thorough safety policies and procedures for interacting with wildlife.
Applying Risk Treatment (Financing) Principles
Risk treatment techniques like transfer and retention can be used to control financial risks like “Low Demand” and “Operational Costs.” Risk transfer takes into account insurance coverage to lessen the economic impact of low demand and operating expenses in the event of unanticipated events. This can include liability insurance for injuries and business disruption insurance (Rushton et al., 2023). Risk-retention creates a flexible spending plan to cover running expenses when business is slow. Concentrate on demand-boosting tactics and service diversification to draw on a broader clientele.
In conclusion, Wilderness Expeditions Canada recognizes the range of dangers related to adventure travel. A vital component of the company’s business plan is its dedication to risk management, environmental sustainability, and safety. Through risk identification, assessment, control, and treatment, the company can effectively traverse the demanding adventure tourism industry while guaranteeing the safety and contentment of its customers, the welfare of its staff, and the conservation of Canada’s magnificent wilderness. The long-term viability of Wilderness Expeditions Canada depends on this thorough risk management strategy.
References
Huddart, D., & Stott, T. (2019). Adventure tourism: Environmental impacts and management. Springer Nature.
Rushton, B., & Rutty, M. (2023). Gaining insight from the most challenging expedition: climate change from the perspective of Canadian mountain guides. Current Issues in Tourism, 1-13.
Tourism, N. T. (2022). Marketing Plan. Northwest Territories Tourism.
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