Abstract

The current global environment is plagued with disasters that give rise to the increased demand for more effective risk management and robust business continuity strategies. This research aims to highlight the pitfalls of the traditional risk management (TRM) approach across industries and within the Jamaican tourism industry; and to demonstrate why there is need for a broader perspective and a more integrated approach to managing risks, especially in this era. Notwithstanding, despite Enterprise Risk Management (ERM) being an integrated and more holistic approach, a critical analysis of the literature indicates that there are gaps in ERM theory and within the actual practice of ERM in some sectors; particularly, the non-financial services sector. Essentially, there are many academic proponents arguing for the shareholders’ value imperatives; but there is a clear gap in literature regarding the value imperatives of stakeholders in general. This research therefore aims to demonstrate that ERM should be “stakeholder focused” as opposed to “shareholder focused”; and to explore the extent to which its practice can create value not just for shareholders within a financial services firm, but to multiple stakeholders across industries. Given Jamaica’s dependence on tourism as a key revenue earner, the Jamaican tourism industry is used as a case study to illustrate the applicability and benefits of the new stakeholder-focused ERM paradigm being proposed in this research. The researcher seeks to explore whether or not the Jamaican tourism industry is ready to adopt ERM and a Value-driven Stakeholder-focused (VDSF) ERM framework as a key solution to mitigate against concentration risks, for example in the tourism product and source market, while boosting sustainability, resilience and value creation. The VDSF ERM framework, which is founded on the pillars of the Stakeholder Theory was conceptualized by the researcher herein; and represents a significant contribution to knowledge.
Underpinned by pragmatism, the case study methodology was supported by a robust review of literature, semi-structured interviews with a diversified cadre of tourism stakeholders and the use of an ERM checklist (the checklist) to collect data on the risk management practices in the local tourism industry. The checklist was designed using the parameters outlined in the ISO 31000 and COSO ERM frameworks and guidelines. The data collected in this research was analyzed by employing the process of thematic analysis as described by Braun and Clarke (2006); (2012). Critical reflexivity, as seen in Cunliffe (2004) encapsulates learning through professional practice, observations & experiences, reflection and reflexivity, theory, as well as one’s belief and value systems. Interestingly, the themes herein did not emerge arbitrarily; but are as a result of a combined rigorous process of going through the different phases of thematic analysis and by employing the agencies of critical reflexivity and professional praxis. The researcher generated deductive and inductive themes, which align to critical findings in the academic literature; as well as data from the interview respondents. Emergent findings include, but are not limited to, “The Inadequacy of the TRM Approach to Meet the Risk Management Needs of the Jamaican Tourism Industry”, “Tourism Stakeholders Ready to Adopt ERM” and “The Dynamics of the Jamaican Tourism Industry”. While the data set indicates that the tourism industry is ready to adopt ERM and the VDSF ERM framework, other findings indicate that there are some unique and peripheral challenges that may hamper full and large scale implementation. Such challenges are discussed along with plausible recommendations, which include the use of technology and a customized change management strategy.