From finance to adventure: using ERM as a framework in adventure tourism

ABSTRACT

Research question

Can ERM be applied as a risk management framework within adventure tourism?

Research methods

The paper is supported by a single-case study into the US aerial adventure industry. Data was collected from 21 interviews of senior managers within the US aerial adventure industry. Interview participants represented public and private organisations, including state agencies, operators and builders.

Findings

This paper finds that even with the fragmented and dynamic state of the industry, (IERM) could provide the comprehensive and holistic approach to risk management currently lacking.

Practical implications

Aerial adventure parks are uniform, yet the risk management procedures are not, meaning the industry is split into separate groups. A need for Industry-wide Enterprise Risk Management (IERM) is therefore identified. This, in turn, will improve public safety levels, the long-term sustainability of the industry as well as provide it with a competitive advantage.

Research contribution

Adventure tourism lacks a risk management framework. This paper furthers academic discussion by proposing IERM as a risk management framework. This, in turn, furthers the academic discussion on ERM, by arguing for its utilisation at an industry level, and contributes to the discussion on the management of aerial adventure visitor attractions, an area currently under-researched.

KEYWORDS:

• Adventure tourism
• enterprise risk management
• risk management
• knowledge transfer
• leadership

Disclosure statement

No potential conflict of interest was reported by the author(s).