Risk Assessment in Hospitality Management

Risk Assessment

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
(a) Identify the risk facing by the project and what methods could use for identification along
with justification.........................................................................................................................1
(b) Analysing every risk giving key indication about probability/likelihood as well as
impacts/consequences of such risk on project’ goals:.................................................................4
(c) Each risk onto a risk matrix which indicates the risk appetite of the project owners...........5
(d) Produce a risk action plan....................................................................................................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Risk Assessment implies to structured set of processes mainly includes effectively
recognising, critically evaluating and optimising all the all the potential and existing risks to an
acceptable manner. Vulnerabilities or risks from various sources that involve legal obligations,
policy mistakes, natural catastrophes and financial instability are established. It exists in the
corporation when investor establishes and tries to identify prospective investment deficit This is
crucial for any organization to handle risk properly as well as to take appropriate decisions for
attracting more investors for further investment (Handfield, Jeong and Choi, 2019). This study is
centred on project of Yawn sing hotel, UK. The key target of this hotel project, which has been
shuttered by critics, was reopened. This study contains and justifies the option of various risk
styles in hospitality management. Set out how profitability can be influenced and how costs and
benefit are measured. Further, the study covers a comprehensive risk index at end of this project
that provides risk appetite for stakeholders and draw up effective risk action plan.
MAIN BODY
(a) Identify the risk facing by the project and what methods could use for identification along
with justification
Risk is very often common to all kinds of organizations and must be properly managed
such that risk factor is reduced. There are some key risks involved in Yang Sing project that is
apparent and that must be adequately assessed in attempt to efficiently handle the venture. This
project here is exposed to the following risks-
 Economy risk- As, some considerations, including political, socioeconomic, legal and
technical variables, are involved throughout the economy which influence the
operations of companies of any kind. These are exacerbated by various economic
transitions in nations which have to be efficiently addressed. Newer developments can
emerge from the requirements for an analysis for Yang Sing Oriental project, in
variables available such as the organization of technical factors. This may be threatened
by such variables, such as policy and law, requiring an effective risk analysis (Hong,
Lee and Zhang. 2018).
 Consumer interest risk- This kind of risk is quite significant for the business to be
measured in the modern global economy in terms of the preferences and attitudes of
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customers and hospitality industry. The danger in the consumption demands for Yang
sing venture will rapidly shift and the corporation, which has a detrimental effect on the
sector, cannot meet this. For project, these may be opportunities because they can
analyse/evaluate and offer services to the potential customer demand.
 Longevity risk- There is a possibility of lacking of experience, expertise and also well
skilled employees in hospitality field as they interact directly with client. This is the
biggest challenge many hoteliers and restaurants had faced. This is project threat,
because as problem with the supply of customer support would arise. In order to turn
this threat into incentives for project, they should include the best preparation and
diverse development programs to boost the efficiency of hotel and customers' workers
(Khalifa and Ali, 2017).
 Legal risk- This is massive risk variable that must be carefully managed by each
organization to ensure its functional performance is smoother and efficient. In order that
the project can resolve this risk, such risk needs to be adequately defined This risk easily
shifts the laws and the compliance in economy as a result of threats. In order to address
potential challenges, they should recognize opportunities for project, like
implementation and the proper application of all existing rules and regulations.
 Management risk- They serve a crucial role in every hospitality industry and change
their desire for the project as major danger. This is a hazard because the corporation's
electricity is major issue. This will create benefits for project, as the atmosphere could
be pleasant and innovative practices and guidelines could be introduced to attract
tourists.
For the effective risk assessment, management need certain effective kind of methods or
technique for quicker risk identification as well as to support risk optimisation that are described
here:
 SWOT analysis: This risk identification approach identifies both positive side
of risks and adverse effects of risks in order to recognize corporation strengths, weakness
factors, opportunities and threats This is employed for determining the company 's
strategic threat. This methodology evaluates the Yawn Sing Hotel Initiative's advanced
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