Facility and Risk Management

The paper mainly focuses on the facility and risk management. The paper mainly reflects on the importance of risk as well as risk management plan for elaborating the importance of risk management in the hospitality industry. Moreover, the paper also focuses on the risk ranking table as well as venue analysis for analyzing the issues and the ways that are utilized for mitigating the rises that are associated with the paper. Moreover, the paper also reflects on the findings and as a result of which a number of recommendations are generally provided.

Running head: FACILITY AND RISK MANAGEMENT
Facility and risk management
Name of the Student
Name of the University
Author’s Note

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FACILITY AND RISK MANAGEMENT
Executive Summary
The paper mainly focuses on the facility and risk management. The paper mainly reflects on
the importance of risk as well as risk management plan for elaborating the importance of risk
management in the hospitality industry. Moreover, the paper also focuses on the risk ranking
table as well as venue analysis for analyzing the issues and the ways that are utilized for
mitigating the rises that are associated with the paper. Moreover, the paper also reflects on
the findings and as a result of which a number of recommendations are generally provided

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FACILITY AND RISK MANAGEMENT
Table of Contents
1. The Notion of risk..................................................................................................................3
1.1 Definition of risk..............................................................................................................3
1.2 Subjects of risk.................................................................................................................3
1.3 Risk management.............................................................................................................3
1.4 The importance of risk management................................................................................5
2. Venue risk analysis................................................................................................................6
2.1 The risk rating system......................................................................................................6
2.2 Venue VRA......................................................................................................................7
2.3 Findings..........................................................................................................................19
2.4 Recommendations..........................................................................................................19
Bibliography.............................................................................................................................20

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FACILITY AND RISK MANAGEMENT
1. The Notion of risk
1.1 Definition of risk
According to Hopkin (2018), risk is defined as one of the possibility that helps in
losing the value of something. It is considered as one of the uncertain condition or the event
which if occurs can generally create effect on the objectives of the project. It is opined by
Glendon and Clarke (2015) that proper risk management mainly reflects on proper
identification for assessing various types of project risk in order to successfully managing the
risks so that the impact of the risk from the project can generally be reduced. Moreover, risk
generally deals with various types of uncertainties which generally could affect the project
quite successfully. It is analyzed that some of the negative project generally have proper
likelihood of risk occurrence on different types of project For example, safety risks generally
occurs on different types of construction related projects.
1.2 Subjects of risk
It is stated by McNeil et al. (2015) that a personal as well as emotion based
assessment of the chances in context to the financial loss are generally presented within a
particular situation. It is found that most of the business managers generally prefers to
analyze the risk in order to help them for easily convincing others for completing the work
within the suggested course of the action as the ability of making a quick as well as
subjective risk assessment that is generally dependent on intuition that is considered to be
useful for the emergencies.
1.3 Risk management
Risk management is one of the process that mainly helpful in properly identifying,
assessing and controlling the various types of threats that are generally present within the

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FACILITY AND RISK MANAGEMENT
organization in context to earnings as well as capital. All the steps that are generally related
with the procedure of risk management generally follow some of the basic steps that are
generally elaborated below:
Identification of the risk: It is the responsibility of both the team to uncover,
recognize as well as describe different types risks which generally can mainly create impact
on the project outcome (McNeil, Frey and Embrechts 2015). It is found that there are a
number of techniques as well as method that the project generally uses. It is found that during
this particular step, one need to prepare proper risk register for the risk that generally lists all
the risks as per their categories.
Risk analysis: It is found that if one of the risks is identified then it is very much
necessary to determine both the consequences as well as likelihood of the risk in order to
analyze the impact that the risk will generally create on the project (Bromiley et al. 2015).
This will also helps in developing proper understanding about the nature of the risk such that
it does not properly create any type of negative impact on the project objectives as well as
goals.
Risk evaluation based on rank: It is found that the risk is generally evaluated or
generally prioritized by properly determining the magnitude of the risk that is generally the
combination of both the consequences as well as likelihood. It is found that proper decisions
about the risk are generally accepted to analyze the method of treatment for the risk (Ho, et
al. 2015). Furthermore, the various types of risk rankings are generally added within the
project risk register.
Treating the risk: This step is mainly considered as the risk response planning step
where the risks that have highest rank or priority are generally treated with the hp of proper
risk mitigation strategies so that project related risks can be resolved. Proper risk

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FACILITY AND RISK MANAGEMENT
management strategies as well as different types of plans for preventing the risks are mainly
used during risk treatment (Giannakis and Papadopoulos 2016).
Monitoring and reviewing risk: This is considered as one of the step were the
project risk register is mainly taken in order to properly monitoring, tracking as well as
reviewing the project risks. Proper reviews as well as tracking of project risks are generally
necessary for making sure that the risk treatment that is done for resolving the risk is
generally done properly or not.
1.4 The importance of risk management
It is quite essential for the hospitality business to develop proper risk management
plan. It is found that proper and effective risk management strategies are mianly needed for
the various hospitality industry members. The risk management procedure is general helpful
for the employees for successfully identifying, analyzing, assessing as well as mitigating the
risks that generally occurs from different sources (Agca et al. 2017). Within the hospitality
industry, it is found that the main focus for providing proper services to the customers and in
order to provide proper hospitality services, it is found that the organization needs to focus on
the customization of security procedures as well as needs to fulfil the customers’
requirements which can generally be possible if appropriate risk management plan is mainly
developed. It is found that with the help of the risk management, the risks that are lined with
the hospitality industry is identified, accessed as well as analyzed in order to mitigate them
with the help of appropriate risk management so that strategies related with the customers
does not need to face any type of problem and proper quality based services is provided to the
customers (Cole, Gine & Vickery (2017). Moreover, it is identified that proper risk
management plan also helps in securing the competitive advantage of the business for
shifting their focus on the emergency situations for proactively analyzing, identifying as well
as assessing different types of risks while formulating different types of business strategies.

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FACILITY AND RISK MANAGEMENT
Thus, it is analyzed that development of proper risk management plan is very much necessary
for resolving the risks as well as problem linked with the hospitality industry so that the
hospitality industry will be able to provide proper services to the customers quite effectively.
2. Venue risk analysis
2.1 The risk rating system
It is found that risk ranking system is defined as one of the approach that is generally
utilized for different types of inputs that are used for the exposure assessment. Moreover, the
risk ranking system can generally be utilized for assessing the risk that generally has the
highest associated risk (Tupa et al. 2017). It is found that the table that is provided below
generally reflects on the ranking of the risk that is generally done on the basis of
consequences as well as likelihood of the project risk
Risk Id Risk Impact Probability Rank
1 Data privacy Major Almost certain Very High
2 Customer
incidents
Moderate Likely High
3 Behaviour of the
staffs
Moderate Possible High
4 Risk related
with branding
Major Possible High
5 Changing
consumer
demands
Severe Likely Very high
6 Shortage of Major Possible High

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FACILITY AND RISK MANAGEMENT
experience
personnel
7 New regulations Minor Possible Medium
8 Property risk Moderate Likely High
9 Employees and
safety
Minor Likely Medium
10. Inappropriate
finance
Major Likely Very High
2.2 Venue VRA
Ris
k
Id
Risk Descriptio
n
Impact Probabili
ty
Rank Responsib
le person
Mitigation
1 Data
privacy
Cybersecuri
ty is
considered
as one of
the main
concern
within the
present
restaurant.
It is found
that any
type of
security
Major Almost
certain
Very
High
IT analyst It is found
that the
venue must
take proper
actions for
resolving
the
cybersecurit
y issues. It
is identified
that
presence of
firewall

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FACILITY AND RISK MANAGEMENT
breach
within the
venue of La
porchetta
can causes
number of
security
issues as
well as
challenges.
within the
venue will
generally
avoid the
problems
that occur
due to
cybersecurit
y issues and
challenges.
2 Customer
incidents
It is found
that as the
venue La
porchetta is
starting the
business,
the
organizatio
n is unable
to protect
the
restaurant
against the
claims of
third party
Moder
ate
Likely High Manager It is found
that in order
to resolve
the risks
related with
customer
incidents, it
is quite
necessary
to protect
the third
party
claims that
are
generally

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FACILITY AND RISK MANAGEMENT
with higher
number of
interaction
with the
various
customers.
given the
higher
number of
interaction
with the
customers.
3 Behaviour
of the staffs
If the
behaviour
of the staffs
who works
within the
venue La
porchetta is
not
professional
then they
will not be
able to
manage the
customers
properly
which will
further
create a
number of
Moder
ate
Possible High HR
manager
It is found
that the
organizatio
n generally
needs to
develop
proper with
the help of
new
retention
plans as
well as
various
types of
innovative
strategies
that further
helps in
engaging

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FACILITY AND RISK MANAGEMENT
issues in
managing
the needs as
well as
demands of
the
customers.
the
employees.
Moreover,
the
employees
must hire
experienced
staffs so
that they
can be able
to handle
the
situation
properly
that will be
beneficial
as well as
profitable
for the
organizatio
n.
4 Risk
related
with
branding
It is found
that due to
improper
branding
Major Possible High Marketing
manager
It is
identified
that the
venue La

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FACILITY AND RISK MANAGEMENT
within the
organizatio
n, it is quite
difficult to
drive the
customers
of the
organizatio
n. It is
found that
due to
improper
branding,
the revenue
that is
collected is
also low
and
therefore
this risk
generally
creates
negative
impact on
the project
porchetta
must take
the proper
initiative of
branding so
that the
organizatio
n can be
able to
drive the
customers
successfully
. In addition
to this, it is
found that
proper
branding
helps in
generating
huge
amount of
revenue for
the
organizatio
n.

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FACILITY AND RISK MANAGEMENT
finance.
5 Changing
consumer
demands
If the
requirement
s of the
customers
generally
changes
then it will
be quite
difficult for
the
organizatio
n to
manage the
requirement
s of the
customers
quite
effectively.
Severe Likely Very
high
HR
manager
It is found
that in order
to fulfil the
requirement
s of the
customers,
it is quite
necessary
for the
organizatio
n to track
the
requirement
of the
customers
quite
effectively
so that the
organizatio
n can be
able to
fulfil the
various
needs as

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FACILITY AND RISK MANAGEMENT
well as
requirement
s of the
customers
6 Shortage of
experience
personnel
If the
workers
who work
within the
restaurant
are not
much
experienced
then they
generally
face a lot of
issues as
well as
challenges
in executing
their work
as well as
managing
the
customers
that further
Major Possible High HR
manager
It is found
that in order
to resolve
the risks as
well as
challenges
that are
linked wit
the
inexperienc
ed staffs
can be
resolved by
arranging
proper
training
facility for
the staffs so
that they
can be able
to learn the

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FACILITY AND RISK MANAGEMENT
creates
negative
impact on
the
operation of
the entire
organizatio
n.
techniques
that are
helpful for
staff
managemen
t. In
addition to
this, hiring
experienced
as well as
skilled
staffs
within the
organizatio
n s also
helpful for
proper
mitigation
of the risk.
7 New
regulations
If any new
regulation
is
incorporate
d within the
organizatio
Minor Possible Mediu
m
Legal
analyzer
The
problem of
conflict
managemen
t within the
staffs are

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FACILITY AND RISK MANAGEMENT
n then the
staffs
generally
faces a lot
of issues in
accepting
that which
further
creates
conflict
within the
stakeholder
s of the
organizatio
n.
necessary
for
resolving
the conflict
that
generally
arises
within the
staffs so
that the
stakeholder
s can work
properly as
a unit for
achieving
benefits for
the
organizatio
n and for
providing
proper
services to
the
customers.
8 Guests It is found Modera Likely High Operationa It is quite

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FACILITY AND RISK MANAGEMENT
conduct that without
the guests it
will be
difficult to
run the
restaurant
and if
proper
services are
not
provided to
the guests
then the
profit that
will be
earned will
generally
get reduced.
te l manager necessary
for the
organizatio
n to
properly
establish
proper
system that
will
generally
be helpful
in properly
dealing
with the
guests
safety as
well as
destruction
which will
further be
helpful in
reducing
such time
of
situations.

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FACILITY AND RISK MANAGEMENT
9 Employees
and safety
If the
organizatio
n is unable
to provide
proper
health and
safety
services to
the
employees
of the
organizatio
n then the
employees
are unable
to provide
proper
services to
the
customers
that will
further
hamper the
profit of the
organizatio
Minor Likely Mediu
m
Hr.
manager
It is found
that in order
to resolve
the
challenges
as well as
issues, it is
quite
necessary
to provide
proper
health and
safety
facilities to
the
employees
so that they
can be able
to provide
proper
services to
the
customers
that will
further

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FACILITY AND RISK MANAGEMENT
n. increase the
benefit of
the
organizatio
n.
10 Inappropria
te finance
If the
financial
profit that is
earned by
running the
business is
not much
then the
organizatio
n will not
be able to
generate
revenue that
will further
create
negative
issue for the
organizatio
n.
Major Likely Very
high
Financial
manager
It is found
that in order
to deal with
such type of
situation, it
is quite
necessary
to attract
the
customers
by
undertaking
promotion
so that the
yearly
revenue of
the
organizatio
n can be
increased

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FACILITY AND RISK MANAGEMENT
2.3 Findings
It is found that there are a number of risks that the venue La porchetta is mainly
facing and it is the responsibility of the project manager to assign proper resources for each of
the project so that the risks as well as challenges can be mitigated quite effectively. It is
analyzed that proper analysis of the risks are generally needed for determining the likelihood
as well as impact of the risk that generally occurs within the venue due to the improper
facility of risk mitigation. Moreover, it I analyzed that proper mitigation of risk is generally
necessary for achieving success.
2.4 Recommendations
It is found that in order to handle the situation that occurs within the organization due
to improper management of project risk can be resolved by taking the recommendations that
are generally provided below:
Proper communication: Effective communication with the project team is generally
necessary for managing the project effectively with the project staffs. With the help of
communication, the higher authority of the organization can be able to know about the
project risks as well as challenges.
Appropriate conflict management: If is found that proper management of the
conflict within the project staffs must be resolved by engaging the staffs and for making
promise of fulfilling the demands of al the stakeholders of the organization.
Involvement of the staffs: It is identified that proper involvement of the staffs are
necessary for resolving the risks of the project quite effectively. It is found that by working as
a team in the project, the risks that are mainly related with the organization should be reduced
by taking proper actions with the help of the project stakeholders.

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FACILITY AND RISK MANAGEMENT
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