Factors That Influence Risk Levels On The Hospitality Industry

Risk refers to any potential problems that would threaten the likelihood of success for or any project. These potential problems might prevent a project from achieving some or all of its objectives by increasing time and cost. Risk factors can even

Risk refers to a likelihood, probability, a chance that a loss may occur in a given organization. Most of the times, there is a high risk when there is vulnerability. In this case, vulnerability refers to a weakness that the organization has. Risk assessment refers to the process of identification of potential hazards and proper analysis of the expected losses if those hazards occur (Homeland Security, n.d.). Risk assessment as a way of profiling risk according to impact to the organization. Some organizations have business impact analysis exercises geared towards determination of potential hazards based risk assessment approaches. Organizations’ risk differ depending on the size and the type of business they are doing. The disparity in organizations’ risk call for different adaptation of risk assessment approaches. Even with the disparities of the businesses, proper risk management not only ranks the risks according to the seriousness but also identifies the best methods to control risks in an organization.

Background- In its most basic sense, risk management identifies, allows assessment, and prioritizes risks that are associated and central to an individual project or organization. Risk management allows the organization to be proactive in preventing or mitigating risks, for improving certain processes within the organization, and with the hope of preventing fiscal exposure. However, in almost every organization there are risks individuals are unique and do not always perform at a high level of safety; mechanical or design failures exist, construction projects have supply or labor issues, there are uncertainties in computer or data modification, of course natural disasters, and even deliberate attacks from competitors, etc. Because this is such a common occurrence, national and even international standards have been developed in conjunction with the insurance and regulatory institutions to at least provide basic guidelines to minimize risks risk (International Organization for Standardization, 2009).

Risk is defined as an event that has a probability of occurring, and could have either a positive or negative impact to a project should that risk occur. Project managers should keep a watchful eye on all of the project 's risks as they have a direct impact on a project’s cost, schedule, and performance. All projects assume some element of risk, and it’s through risk management where tools and techniques are applied to monitor and track those events that have the potential to impact the outcome of a project.

As we discussed in class, every business is faced with these issues and they are important to managers making strategic decisions. One of the first things learned about business is that if there is no demand for a good or service, the firm that provides it will not continue to exist. Over time the hotel industry has continued to change with market conditions and make itself attractive to business

“An occasion when one or more consequences (events, outcomes and so on) could occur. Critically (a) those consequences may be harmful and/or beneficial and (b) either the number and /or the extent of those consequences, and /or their likelihood, is uncertain and/or unknown”. (2008, p242)

The term risk has been defined in so many ways by many scholars. The term ‘risk’ itself is very broad to interpret. However, risk is often defined as a threat and it usually brings negative impacts to a person or an organisation. Hansson (2005) claims that many attempts have been made to define risk in a single meaning and eliminate other definitions which are futile and a form of ‘linguistic imperialism’. Since there is no exact meaning of risk, people describe risk based on their own perceptions and purposes. Perminova et al. (2008) and the Association of Project Management (APM) define risk as an uncertain event and exclusively negative (APM, 2006). Ward and Chapman (2003) recommend that project risk management (PRM) is categorized as project uncertainty management. Nonetheless, the term ‘uncertainty’ again brings confusion as there is no single meaning that can successfully define it (Perminova et al., 2008). On the contrary, Kaplan and Garrick (1981) define risk according to public’s risk perception. There are three criteria suggested by the authors such as the failure of that particular event, its tendency as well as the impact of the failure. Although there have been countless struggles to picture risk in a proper way, it is best that the focus should be diverted to a more important issue which is how to manage risk instead of defining it as time may not be on our side.

Defined by Coopers textbook, risk is the exposure to the consequences of uncertainty and has two elements: the likelihood of something happening that has an impact on the project objectives, and the positive or negative consequences of something impacting the project objectives (Cooper, Grey, Raymond, & Walker, 2005)

Restaurant risks are an inevitable part of doing business, but I believe that savvy restaurateurs, managers and chefs can manage these risks proactively with proactive preparation, careful planning and implementing the right risk-management techniques. People use restaurants as social hangouts, places for business meetings and homes away from home, so any restaurant 's customers might seem more like family than customers, but when something goes wrong, I 've found that restaurateurs quickly realize that these "family members" are actually part of a long-term business relationship that generates high levels of risk and legal liabilities. I 've worked in the restaurant business for many years as a cook, server, chef, manager and restaurant owner and sold advertising to fine dining restaurants and major hospitality venues, so I 've learned a few things about the restaurant business that even experienced restaurateurs might miss.

Today’s risk management environment is more dynamic than ever. More often, companies are embracing risk management’s undeniable opportunity to improve business results. The emergence of this “true business partner” relationship requires that risk management decisions and processes rely more on strategic planning, rigorous analytical processes, and collaborative internal and external partnerships. Knowing which actions and relationships will drive down your costs of risk demands a deep and comprehensive understanding of the factors that influence it.

According to Kendrick (2009, p. 17), roughly 75 percent of projects fail when project teams refuse to adopt some form of risk monitoring and control. Ken Black (1996), an associate professor of decision sciences, published an article listing twelve factors that contribute to the failure of projects. The article highlighted risks as one of the factors that can negatively affect project constraints (Black, 1996). A risk, as defined by Kendrick (2009, p. 1), is an event or series of events that occur due to the level of uncertainty associated with the project outcome. If a risk occurs, it threatens the success of a project because it can halt or prolong the project’s constraints. Risk

There is a variety of risks in the hotel industry that can be divided into four main categories:

1. Risk- An uncertain event or condition that, if it occurs has a positive or negative effect on CLIVE 2.0‘s objectives. It’s measure of the inability to achieve overall objectives within defined requirements and constraints and has

There are many areas to focus on when it comes to risk management, depending on your company’s infrastructure; risk management is going to be different. The areas of risk management will include compliance risks, financial risks, operational risks, and strategic risks.

One well accepted description of risk management is the following: risk management is a systematic approach to setting the best course of action under uncertainty by identifying, assessing, understanding, acting on and communicating risk issues. In order to apply risk management effectively, it is vital that a risk management culture be developed. The risk management culture supports the overall vision, mission and objectives of an organization. Limits and boundaries are established and communicated concerning what are acceptable risk practices and outcomes. Since risk management is directed at uncertainty related to future events and outcomes, it is