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Facility and Risk Management Assessment

   

Added on  2020-05-16

21 Pages3567 Words34 Views
Running head: FACILITY AND RISK MANAGEMENTAssessment 3: ReportName of the StudentName of the UniversityAuthor’s Note

1FACILITY AND RISK MANAGEMENT Part 1: The notion of risk1.1 Concept of riskAccording to Allen et al.(2015), the probability or threat of injury, damage, liability aswell as any type of negative occurrence which is generally caused due to some internal orexternal vulnerability is defined as risk. It is identified that risk mainly creates possibility oflosing some original investment and as a result the chances of difference between the originalinvestments to expected return generally differs a lot. In project, risk is considered as anuncertain event or condition which either creates positive or negative impact. It is stated byBrack et al.(2015) that every project faces number of risk and in order to resolve theopportunities as well as threats that are highlighted by the risk with the help of propermanagement strategy. The risks that are associated with the project can be easily resolved withthe help of five main processes of risk management which mainly include risk identification, riskmanagement planning, qualitative risk analysis, risk response planning as well as risk monitoringand control.Project risk is defined as an uncertain condition or event that generally creates eitherpositive or negative impact on the objectives of the project. There are number of risks that areassociated with the project. According to Cagliano, Grimaldi and Rafele (2015) cost related riskin project mainly occurs due to scope creep or due to improper estimation of budget howeverslippages in schedule of the project causes schedule risk which not only delay the project but alsoenhances the cost of the project. On the other hand, performance related risk in project generallyfails to produce proper consistent results with the specifications of the project. There are numberof different types of risk like strategic risks, governance risk, operational risks as well as marketrisk, external risk as well as legal risk. It is opined by Fleming and Koppelman (2016) that

2FACILITY AND RISK MANAGEMENTproject risks generally include internal risks that are generally associated with each stage of theproject plus external risks that are generally beyond the control of the project team. An externalrisk that arises outside the organization generally affects the ultimate value that is generallyderived from the project. In addition to this, seriousness of the project risks generally depends onthe nature as well as magnitude of the possible end probabilities as well as consequences. It isstated by Glendon, Clarke and McKenna (2016) that if a risk event does occur within the projectthen it is quite necessary to handle the risk in order to mitigate the impact of risk. It is identified that hospitality industry generally faces unique sets of risks in their dailyoperations and therefore in order to mitigate those risks, it is quite necessary to implement properrisk management processes. Effective risk management strategy helps in identifying, analyzingas well as assessing risks that are generally associated with number of different sources includinglegal ramifications, accidents, natural accidents as well as cyber security breaches and more(Hering et al. 2015). The risks like food safety, liquor liability as well as branding that areassociated with hospitality industry generally creates negative impact on the day to dayoperations of the industry that further creates negative impact on the yearly revenue. In additionto this, cyber security is considered as the second highest risk which leads hospitality industry toconstantly deal with social engineering attacks like phishing (Hornstein 2015). In order toresolve this issue, most hospitality business allocate capital as well as time in order to implementrisk management strategy that not only mitigates the risks but also assists in improving sales,customer service as well as operational efficiency. It is stated by Hwang, Zhao and Toh (2014) that implementation of risk managementstrategy is quite important as risk management strategies helps in identifying the strengths,weaknesses, opportunities as well as threats that are associated with hospitality industry. The

3FACILITY AND RISK MANAGEMENTstrategies of risk management mainly help in contributing within the success of the hospitalityindustry by properly establishing lists of external as well as internal risks. The plan that is madewith the help of risk management strategies generally assists in including various types ofidentified risks, probability of occurrence as well as potential and proposed actions in order tomitigate the risks (Hwang, Zhao and Toh 2014). The risks are generally categorized into lowrisk, medium risk as well as high risk and they are generally mitigated as per their probability ofimpact. As per the risk management strategies, the project managers maintains propercommunication with the project sponsors as well as stakeholders in order to run the projectsmoothly and for communicating the plan (Kaiser, El Arbi and Ahlemann 2015). This generallyhelps in setting proper expectation before the people who provide funds to the project so thatproject can be ale to run smoothly without creating any disruption. It is found that with the helpof proper identification, avoiding as well as dealing with potential risks, the hospitality industrycan be able to respond effectively when any type of risk occurs. By implementing risk management strategies within the hospitality industry, one canensure that the chances of risk will be minimized or mitigated. Proper risk managementprocesses helps in allowing the hospitality industry to maximize their profits by minimizing theexpenses on various activities that are generally required for resolving problems (Kerzner andKerzner 2017). In addition to this, risk management strategies within hospitality industry helps increating proper risk aware culture, risk management objectives as well as proper infrastructure ofrisk management for managing risk in accordance with the approach of risk management(Marcelino-Sadaba et al. 2014). In addition to this, risk management plan assists the hospitalityindustry to avoid big disaster, enhance revenue by saving expenses, helps in providing propercompetition as well as increases sense of responsibility for exploring new opportunities.

4FACILITY AND RISK MANAGEMENTPart 2: Venue risk analysis2.1 Risk ranking systemThe venue “Georges Paragon” which is one of the leading seafood restaurants is highlypopular for its blue as well as white interiors. It is identified that the restaurant helps in providingproper experiences to the customers however after proper research it is analyzed that therestaurant faces some design problems. The issues that are associated with the venue generallyaffect the user experience of the customers. In order to resolve this issue, it is quite important toanalyze the risks that are associated with the venue appropriately. It is identified that riskmanagement procedure is generally applied within the venue by conducting a risk assessment.The risk ranking and filtering is considered as one of the most significant method that isgenerally utilized for risk management. This method is also known as relative risk ranking, riskindexing as well as risk matrix and filtering. This method mainly works by breaking down theentire risk into various different components for evaluating the components and their entirecontribution within the overall risk (McNeil, Frey and Embrechts 2015). This tool will be helpfulin considering the factors that generally affects the risks that is mainly faced by the organization.The factors mainly include event likelihood, time to impact, financial severity, injury severity aswell as reputational impact severity. The risk ranking tool generally helps in listing all thevarious potential risk events which can create adverse impact on the organization and helps inillustrating the control that the organization has for managing as well as mitigating the risks(Paquin, Gauthier and Morin 2016). In the first step, appropriate scale for each of the factor isidentified in order to decide how the controls are helpful in addressing the factors as well as risk.

5FACILITY AND RISK MANAGEMENT The risk ranking tool is based on a matrix whose axes are the ranks for probability aswell as consequences. Both the combination of risk likelihood as well as consequence generallyassists in creating risk rank (Press et al. 2015).The risk rank matrices are generally utilized inorder to assess the risks that are generally associated with the venue. The procedures that aregenerally utilized in order to assess the risks that are associated with risk assessment are asfollows:Identification of hazards: For identifying the hazards that are associated with the venueone need to understand the difference that generally exists between hazard and risk (Sadgrove2016). It is identified that a hazards are generally identified by utilizing number of differenttechniques. Decide the impact: Once the risks or hazards that are associated with the venue areidentified then it is quite important to understand the impact of the risk. Analyzing impact of therisk is quite necessary in order to understand who might be in the venue will be harmed and bywhat procedure.Identification of opportunities: While identifying the risks it is very much necessary toidentify positive risks as well as opportunities. It is necessary to list all the events that wouldaffect the venue in a quite positive manner (Schwalbe 2015). Analyzing positive impact is alsonecessary for the venue of Georges ParagonDetermining likelihood and impact: It is very much important to establish how likelythe risk will occur for determining the impact of risk in context to time, cost, quality as well asbenefits. It is very much necessary to analyze the impact as well as the likelihood of the risk.

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