Application
This unit describes the performance outcomes, skills and knowledge required to identify the ramifications of a crisis on business continuity and to respond with strategies that ensure the financial viability of the organisation. It requires the ability to identify and interpret information relevant to the crisis and the business operation, and to assess and adapt business operations to manage the crisis.
Managing business continuity is a complex process which involves the use of a range of interrelated skills, such as financial analysis, budgeting, developing operational plans and adapting the provision of products to meet the needs of a market in crisis. These skills are covered in other units.
This unit applies to all tourism, travel, hospitality and event sectors and to any size organisation. The crisis could be of a magnitude that affects the operation of an entire organisation, department or particular project.
It applies to senior managers and owner-operators who operate with significant autonomy and are responsible for making a range of strategic management decisions.
No occupational licensing, certification or specific legislative requirements apply to this unit at the time of publication.
Elements and Performance Criteria
ELEMENTS | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Identify and acknowledge the crisis. | 1.1.Consider impacts on business operation through early identification of triggers for a downturn in business. 1.2.Access and interpret information relevant to crisis. 1.3.Identify and acknowledge internal and external crises. |
2. Assess impacts on the viability of the business. | 2.1.Involve key people in assessment of crisis. 2.2.Review organisational documents to determine current financial and operational status of business. 2.3.Produce new financial forecasts based on known information about crisis. 2.4.Produce a range of forecast options based on reasonable and worst case predictions of impacts. 2.5.Monitor severity of crisis and adjust forecasts according to swiftly changing circumstances. 2.6.Determine severity of business impacts and develop recommendations to ensure financial viability of organisation. |
3. Adapt business operations to manage the crisis. | 3.1.Develop and implement emergency operational plan to manage the crisis. 3.2.Involve key people in managing business crisis and integrate their perspectives. 3.3.Implement accepted recommendations for changing business operations. 3.4.Communicate new practices to key people including external suppliers. 3.5.Re-align staffing arrangements to control wage costs. 3.6.Gain staff confidence in current managerial activity and commitment to the business in crisis. 3.7.Re-align products and services to meet current market needs. 3.8.Re-negotiate with suppliers to achieve optimum profitability during crisis. 3.9.Implement promotional and public relations activities to ensure consumer confidence. |
4. Monitor and evaluate business operations. | 4.1.Monitor business activity and profitability throughout all stages of crisis. 4.2.Seek internal and external feedback on effectiveness of emergency business operations. 4.3.Identify and respond to inadequacies in emergency operational plan to account for changing circumstances. 4.4.Continually adapt business operations to ensure business continuity. |
Evidence of Performance
Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:
identify and assess ramifications of at least two internal and two external crises on business continuity
demonstrate the following for each of the above internal or external crises on business continuity:
develop a clear, accurate and complex emergency operational plan
assess and adapt business operations to manage business continuity
implement the emergency operational plan and monitor, evaluate and adapt the plan based on outcomes.
Evidence of Knowledge
Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:
trigger factors for downturns in tourism, travel, hospitality and event business:
changes in the length and regularity of holidays taken by the source market
changes in the popularity of:
destinations
style of tourism, travel and hospitality products
budget or premium product
closure of major transport suppliers:
airlines
coach companies
cruise operators
closure of the operation of multiple suppliers in a destination
downturn in local economic growth
global financial downturn
impending economic recession or crisis
in destinations used by the business, warnings of impending:
natural disasters
political and civil uprisings
terrorism acts
wars
ramifications of an internal crisis on business continuity:
breakdown or complete failure of key equipment
accident, death, major injury or illness, or repatriation of a customer, tour guide or tour manager
destruction of infrastructure
failure of marketing program
financial loss through non-compliance with the law or litigation
death, family crisis, fraud, long term illness or professional incompetence of a key employee
media coverage of business accident, incident or impending failure
major work health and safety accident or near miss incident
ramifications of an external crisis on business continuity:
breakdown or complete failure of supplier equipment
plane crash
for destinations used by the business:
chemical spill
civil uprising
destruction of tourism infrastructure
health epidemics or pandemics
natural disaster
outbreak of war or political coup
radiation leak
terrorism
financial recession or crisis for the source market
industrial dispute
specific industry sector:
key characteristics of internal and external crises
impacts of crises on the provision of products and services and business viability
historical impacts of crises on tourism, hospitality and event operations
major triggers for a downturn in customer sales
consultative mechanisms commonly used by organisations
promotion and public relations activities commonly used by organisations during a crisis
role of key external people and organisations in managing a business crisis
techniques to adapt business operations to manage a business in crisis
specific organisation:
roles and responsibilities of key staff members and external consultants
contents and role of organisational documents in managing the business
key people involved in the assessment of a business continuity crisis:
business accountants
customers and their families
colleagues
consultants:
crisis management
marketing
public relations
financial controllers
insurance brokers and providers
legal representatives
suppliers
travel insurance providers
organisational documents to determine current financial and operational status of a business:
brochures
budgets
business plans
current contracts relating to current financial and operational business matters
customer surveys
financial reports and forecasting
product costings and published tariffs and price lists
reports
tenders, proposals or bids
terms and conditions for credit provision
provision of products and services to customers
possible recommendations to ensure financial viability of businesses in continuity crisis:
cancelling impending departures to affected destinations
cancelling unprofitable products or services
closing particular departments
moving premises to a less costly location
price rises or reductions
re-aligning product style and pricing to meet current market needs
reducing staff hours, or staff redundancies
sale of equipment
scaling promotional activities up or down
temporary cancellation of products in affected destinations
temporary closure of affected locations
formats for and inclusions in emergency operational plans
features and functions of financial software programs for preparing and monitoring financial reports.
Assessment Conditions
Skills must be demonstrated in a tourism, travel, hospitality or event industry business operation or event facing a business continuity crisis. This can be:
an industry workplace
a simulated industry environment.
Assessment must ensure access to:
computers, software programs, printers and communication technology used to administer crisis management
current commercial plans and financial reports
crisis information:
emergency services reports
health advisory notices and vaccination information issued by local and international bodies
industry associations and organisations
industry journals
informal discussions and networking with internal and external colleagues
media reports on external crises
press releases and emergency advice notices issued by:
local, state, territory or federal governments
destination marketing companies
regional, state and national tourism offices
franchisors
staff, contractor, supplier reports on:
accidents
breakdown or complete failure of key equipment
death
injury
major work health and safety incidents
travel warning advice issued by the federal government for Australian travellers
a team so that consultative actions can be implemented; this can be:
team in an industry workplace who are assisted by the individual during the assessment process; or
individuals who participate in role plays or simulated activities, set up for the purpose of assessment, in a simulated industry environment operated within a training organisation.
Assessors must satisfy the Standards for Registered Training Organisations’ requirements for assessors.
Foundation Skills
Foundation skills essential to performance in this unit, but not explicit in the performance criteria are listed here, along with a brief context statement. | |
SKILLS | DESCRIPTION |
Reading skills to: | interpret complex and unfamiliar reports about external crises and complex internal business management plans and reports research the internal and external factors that impact on business performance. |
Writing skills to: | prepare clear, accurate and complex emergency operational plans. |
Oral communication skills to: | consult with others on complex operational, financial and management issues communicate difficult operational changes. |
Numeracy skills to: | interpret and analyse financial information from forecasts and previous performance data develop financial estimates and scenarios. |
Problem-solving skills to: | evaluate the severity of crisis impacts on business operations and re-align practices to ensure the financial viability of the organisation react to swiftly changing circumstances. |
Planning and organising skills to: | manage a cohesive and changeable response to crises and produce reports within tight timelines. |
Self-management skills to: | take responsibility for managing a business in crisis and for the outcomes of emergency management practices. |
Technology skills to: | use accounting software packages. |
Sectors
Cross-Sector
Competency Field
Crisis Management