Risk Management Plan for Kter Hotel

This article discusses the purpose, scope, risks, and risk management plan for Kter Hotel. It also includes a stakeholder analysis, SWOT and PEST analysis, financial objectives, risk identification methods, and risk treatment strategies.

Running head: RISK MANAGEMENT
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Part A
Purpose of risk management plan
Every company operates in uncertain events that when they occur may have
positive and negative impacts on its objectives. According to Lyles, Berke and Smith
(2014), it is paramount to have a risk management plan which helps in the definition,
monitoring, responding and mitigating risks (92). For the purpose of this assignment,
it will consider my place of work and for that case a hotel called Kter. As such,it will
be important to consider a brief overview of the organization.
Brief overview
Kter hotel deals with the normal foods through the company deals with foreign
guests and high profile people. The company has been in operation since the year
2000 and it has become one of the most popular company in the region. Just like any
other hotel, it operates under unforeseen events that need be taken into consideration
in a risk management plan.
Stakeholder analysis
The company deals with both internal and external stakeholders. The internal
stakeholders include:-
1. The management team
2. The team members
3. The sponsors

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4. Board of directors(owners)
5. Head of departments
6. Vendors
7. Customers
The external stakeholders include:-
1. Media
2. Community and this includes citizens
3. Competitors
4. Governments including legal system and courts
Scope of risk management required
Risk management plan will consider both the internal and the external
environment that affect the operations of the hotel. As Purdy (2010) suggests, the
project will consider the workplace, the vendors and risks that can be posed by the
government or even the competitors (p.882). In order to understand the internal and
external influences, it will be important to discuss SWOT and PEST analysis.
Swot analysis
Strengths
1. Strong customer relationship
2. It is flexible hence it will be able to
handle changes easily
Weaknesses
1. High dependency on the tourists who
are usually sensitive to political

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3. It is situated promixally hence it
attracts a huge number of customers
which translates to high sales
environment
2. Low barrier sector due to many failures
that reduce profit margin
3. Low productivity especially in low
season
Opportunities
1. Rise of technology which helps in
strengthening customer relationship
2. Increasing globalization which is likely
to bring more customers
Threats
1. There are black markets which are
threats to normal working conditions
2. Distance travelling is affected by
climate change
3. Terrorism and seasonal political
instability
PEST analysis
Political:-There are dangers of terrorism and deteriorating diplomatic relationships
that affect the operations of the hotel
Economic:-Heckmann, Comes and Nickel (2015) asserts that is slow economic
growth in America and ongoing turmoil of US-China Trade deal (p.125).
Social:-More people are preferring U.S for holiday and even for business bench
marking hence increasing market niche (Hartmann and Driessen, 2017 p.150).
Technology:-Online booking of guests room have directly increased the profit margin
including advertising though social media.

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Risks involved
Some of the risks involved in the hotel are:
 Eruptions of fire
 Decline in business travel
 Terrorist attack
 Extreme weather
 Food poisoning
 Unregistered food vendors
 Litter collection
Part B
Just like any other company, company Kter is guided by the following mission,vision
and objectives.
Mission:-Being a global hotel guided by excellence and innovation.
Vision:-Being the number one hotel destination
Objectives:--Increasing loyalty of the customers
-Being a sustainable company
-Maximizing efficiency in the various departments
In addition to this, it is guided with the following critical factors:

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Location:-It ensures that the hotel is accessible easily which ensures that guests take
advantage of this.
Global outlook:The hotel is focused on keeping its services to international standards
in terms of cleanliness and customer management.
Quality management:-The hotel keeps into consideration employee satisfaction and
involvement of all stakeholders.
Financial objectives of the company are:
1. Growth of revenues
2. Increase of profit margins
3. Sustainability
4. Increase in returns on investment
Risk identification methods
As Hopkin (2018) notes, risk identification will involve the following; the project
team, appropriate stakeholders and will also include evaluation of cultural and
environmental factors.
Risk analysis tools
The risks identified will then be then be assessed to determine possible outcomes
and their effects. Then qualification will then be used to determine the risks that will
come on top and those should be ignored.

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Likelihood and levels of risks
Probability
High-Probability of occurrence is 70% and above.
Medium-Probability of occurrence is between 30% and 70%.
Low-Probability of occurrence is below 30%.
Impact
High-This is the risk that will affect the costs of operations and performance of the
hotel.
Medium-Risk that have slight impact on the costs operations of the hotel.
Low -Risks that have little impacts on the operations of the hotel.
Risk management Objectives
The following are two key roles of the management
Occupational Health & Safety Risk Management is necessary and as Hartmann and
Spit ( 2016) asserts, mitigation procedures should be done within the stipulated
standards (p.362). Additionally, assessment will be done upon the compliance of the
applicable legislation and prescription.
Risks treatment plan

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After an assessment is done, there will be need for selection of risk treatment
strategies, planing and implementation.
The following are available strategies of mitigation
1. Avoidance:-Some risks like fire can be avoided by fixing lose power cables.
2. Transference-Some like financial loss can be transferred to another party like
insurance
3. Mitigation:-Scholten, Sharkey Scott and Fynes (2014) note that Active reduction of
the consequences of risk by establishment of alternative designs and models.
4. Acceptance:-Whenever seems like there are no alternatives then the risk can be
accepted such as natural catastrophic.
Risk mitigation planning and implementation
The proposed plans will be integrated and managed by the overall management of
hotel and every employee will be involved in the project. As such, the activities of
mitigation will be continuously monitored and reviewed whether everything is on
track.

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References
Heckmann, I., Comes, T. and Nickel, S., 2015. A critical review on supply chain risk–
Definition, measure and modeling. Omega, 52, pp.119-132.
Purdy, G., 2010. ISO 31000: 2009—setting a new standard for risk management. Risk
Analysis: An International Journal, 30(6), pp.881-886.
Hartmann, T. and Spit, T., 2016. Legitimizing differentiated flood protection levels–
Consequences of the European flood risk management plan. Environmental
Science & Policy, 55, pp.361-367.
Hopkin, P., 2018. Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers.
Hartmann, T. and Driessen, P., 2017. The flood risk management plan: towards
spatial water governance. Journal of Flood Risk Management, 10(2), pp.145-
154.

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Lyles, W., Berke, P. and Smith, G., 2014. A comparison of local hazard mitigation
plan quality in six states, USA. Landscape and urban planning, 122, pp.89-99.
Scholten, K., Sharkey Scott, P. and Fynes, B., 2014. Mitigation processes–antecedents
for building supply chain resilience. Supply Chain Management: An
International Journal, 19(2), pp.211-228.