Risk Policy for Fern Resorts

This document discusses the risk policy for Fern Resorts in the hospitality industry, including the impact of changing consumer demands and lack of experienced employees. It also provides strategies for incident reporting and facilities impact analysis.

Running head: RISK POLICY FOR FERN RESORTS
Risk Policy for Fern Resorts
Name of the student:
Name of the university:
Author note:

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Table of Contents
I. Introduction:.................................................................................................................................2
II. Policies........................................................................................................................................4
A. Management theory................................................................................................................4
B. Departmental requirements.....................................................................................................4
C. Employee requirements...........................................................................................................4
D. Any safety precautions............................................................................................................5
III. Incident/accident reporting strategies........................................................................................5
A. Risk situation..........................................................................................................................5
B. Blank incident report form and Example of a completed report form....................................6
IV. Facilities Impact Analysis.........................................................................................................7
V. Risk Analysis Management Strategies.......................................................................................9
References......................................................................................................................................10
Appendix........................................................................................................................................11

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I. Introduction:
The hospitality industry is observed to be one of the most profitable business sector in the
modern business world. As the industry is seen to have lesser amount of impact of the strict
legislations from the part of the governments, the number of new entries into the mentioned
industry is seen to increase in significant manner. However, it is visible that the organizations
operating in the mentioned industry are facing the detrimental impact of the risks such
continuous changes in the customers’ demands, lack of experienced employees along with the
uncertainty in the International Travel (Lowry, 2016). The chosen organization for the paper is
Fern Hotels Canada and is seen to be affected by the above mentioned issues in a significant
manner. The continuous changes in the preferences of the customers are observed to be a menace
for guest service department of the chosen organization. Along with that, the lack of the
experienced employees is seen to affect the operations of the sales and the room service
department of the organization. Apart from this, the sales department is seen to be worried with
the reduction in the numbers of the International travelers or tourists which is seen to be a
concern for the shareholders of the organization as well. The impact of the above-mentioned
issues is pretty visible as many of the organizations are seen to face notable amount of issues in
aligning their operations in accordance to the preferences of the customers. As the modern
hospitality industry is seen to face significant amount of competition, the achievement of the
preferences of the customers is seen to be much needed for the organizations. However, the
varying preferences of the customers is seen to be difficult to achieve for the organizations
through their customized products and that is seen to pose notable amount threats for those
organizations under the pressure of the intense competition of the market. Adding to this, the
quality in the services of the employees is seen to be crucial for the organizations operating in

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the mentioned industry as that has the potential to influence the purchasing preferences of the
customers.
The lack of quality in the services of the employees of the organizations of the mentioned
industry has the potential to reduce the sales for those organizations which is expected to be
result of the customer dissatisfaction (Chang, 2016). With a precise focus on the varying
demands, it is pretty visible that many of the organizations of the mentioned industry are unable
to achieve the idea of the number of the customers, participating in the international travels. It is
pretty evident that the impact of the issues on the organizations operating in the mentioned
industry is significant as it has the potential to affect the business conduction. The uncertainty
regarding the sales of the organizations has the potential to affect the financial condition of the
organizations (Schachter & Mancarella, 2016). Hence it is pretty evident that the mentioned
issues are in need to be managed in an efficient manner with the suitable risk management
strategies.
Supervision of the Potential Risk Areas:
The above-mentioned risks are observed to be associated with a number of the
departments of the organizations. Hence the risk manager will have the responsibility of
supervising the risk with the help of the human resource manager, head of the guest services and
the managers responsible for the promotion and marketing of the organizations.
The much needed qualification for the team of risk management will be Masters in
Business Administration with specialisation in the Human Resource Management for the HR
manager, Masters in Business Administration with the specialization in the marketing along with
hospitality management for the head of the guest service of the organizations.

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The strategy for the individuals will be to monitor the factors that are affecting the
business conduction of the organization with a precise focus on the identification of the strategies
that can be used for minimizing the impact of the issues.
The certification is seen to be much needed in terms of the management of the risk and
the certification that are much need in the case are related to the respective departments facing
the heat of the risks.
Considering the impact of the increasing demand on the quality of the services, it is pretty
evident that the number of customers that the industry can manage is having a value of 70 out of
100 and that indicates the ratio of manageable and unmanageable to be 7:3 (Fernhotels.com,
2019).
II. Policies
A.Management theory
Fern Resorts can face many theories such as shortage of experienced personnel, changing
consumer demands and uncertainty in international travel.
The shortage of experienced personnel is a huge problem and is a potential risk to an
organisation. If this is not controlled with a suitable risk management strategy can cause serious
damages to the productivity of the Company. The risk can affect the organisations’ capability to
innovate, learn new thing and identify technology to be able to attain the competence.
Training and development is arisk management strategythat can be applied to the
process and nurture freshly recruited professionals, so that, they are competent enough to
perform. Training and development theories are of various types like Constructivism and

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Behaviourism.The “Constructivism”learning theory encourages employees to actively
participate in their professional development plans (PDP) (Bada & Olusegun, 2015).
On a similar note, the changing consumer demands, which is a potential risk can be
controlled with the “Theories of Perception”. According to the theory, Fern Resorts need to
understand its customers’ perception of hospitality products and services (Hamlyn, 2017). If they
go with this theory they will need to work upon their positioning.
B. Departmental requirements
Employees will be need to submit their documents at the time of induction. This will help
to conduct the training programs for freshly recruited professionals.
C. Employee requirements
Employees will be insured. They will need an approval to participate in the training
programs. However, training is already a fundamental part of operations of the organisations.
D. Any safety precautions
Risks Liabilities
Training 1. Rapid changes
2. Language barrier
3. Organisational
barriers to learning
1. Human resource
department
2. Mode of communication
in the Company and
trainees’ inefficiency to
understand the language
3. Rigid management

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thinking
Positioning and marketing
strategies
The position being achieved
may be different to what has
been thought
Decision-makers in marketing
Table 1: Any safety precautions
(Source: Aven, 2016)
III. Incident/accident reporting strategies
A.Risk situation
A risk situation can cause crisis of the required resources and over utilisation of
resources. Crisis of resources will delay the project. On the other hand, over utilisation of
resources will affect the overall operational cost (Dieperink et al., 2016).
B. Blank incident report form and Example of a completed report form
Incident Report Form
1. What was the Incident/near miss?
Inappropriate handling of customers

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2. Was there any damage to property or plant?
It resulted in customers getting angry over the ‘Front House Managers’. Few of those customers did spread a
negative publicity of the event. Indeed, a negative word-of-mouth can seriously affect the service reputation
of the Company.
3. What caused the incident?
The order was delivered late. In addition, the front house manager could not do much to it. The
situation was not also addressed appropriately.
4. What actions will be taken to eliminate future repeats of the incident?
Food delivery needs to be improved. This will require effective communication between networked
departments and the use of appropriate technologies to speed up the cooking process.
5. Management comments
The management has accepted that they were at fault. They have assured of taking suitable decisions to
be able to avoid such incidents from occurring in the future.

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This is signed off by the management when all the corrective actions have been monitored and
adopted.
IV. Facilities Impact Analysis
Key risks that are associated with the hospitality industry is one of the major contributor
which requires is a specific planning in order to develop the key areas that will be required for
the addressing the risks. The key risks that are associated with the Fern Resorts being one of the
major player in the hospitality industry it is one of the most significant aspects that will be liable
for the development of the strategic planning liable for the development of the area that will be
beneficial to resolve the issues (Moutinho, & Vargas-Sanchez, 2018). The key issue of the
unexperienced employees will be impacting the organization in an adverse way. This is one of
the most significant challenge and risk for the Fern Resorts. Strategic planning can also impact
the organization to deal with the uncertain consumer demand. Uncertain consumer demand can
impact the organization in an adverse way. Strategic planning as a tool can also be used in the
areas of uncertain international tourism (Bartlett, Johnson & Schneider, 2016).
Strategic planning for dealing with the risk is one of the most important aspect that is
required by the organization. However, there are tools that have significant impact on the
strategic planning that deals with the organizational benefits. The tools such as forecasting the
demand can help Fern Resorts to analyze the tentative customer demands with the changing
preference of the customers. One of the most impactful tool that can help the inexperienced
employees to be involved in the process of developing the key areas that will be liable for the
developing the necessary skills. These skills are one of the most significant aspects that will be
helpful for the employees to engage with the customers. The engagement with the customers will

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be helpful for the organization to deal with the customer and help in the developing relationship
with the customer (Ariza-Montes et al., 2017).
These tools are one of the main aspects that will be helpful for the organization. This
needs to be monitored as it is one of the most influential part for the organization. The human
resource team will be liable for the development of the employees whereas the sales team will be
liable for the projection related to the demand of the customers (Ariza-Montes et al., 2017). This
is one of the major factor that will be liable for the development of the aspects that will be liable
for the making the strategies.There needs to backup plan that needs to be incorporated for the
development of the key areas that will be liable for the development of the key areas that will be
for the development of the key areas. Activities such as training and the development of the
employees will be helpful for the development of the key areas that will be liable for giving the
customers best possible experience. The activities that will be liable for the incorporating with
the changing customer preference and demand will be addressed by the planning and forecasting
the sales along with developing promotional campaigns to attract the international travelers.
V. Risk Analysis Management Strategies
Designing the system helps in the determination of the risks and help in the addressing
issues by creating the strategic decisions. This is one of the key areas that will be liable for the
development of the factors that are related to the development of the key areas.Risk analysis for
the stated risk is one of the most important part for the management. The analysis process is
inclusive of the identification of the risk, analyzing the magnitude of the risk, mitigation
planning and monitoring the risk assessment plan. The management will be a part teams such as
sales and human resources will be liable for dealing with such issues (Bartlett, Johnson &
Schneider, 2016).Risk management process using the ABC method which starts from the

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establishing the context then identify the risks such as consumer demand, inexperience
employees, decreasing the foreign travelers. Then the impact of the risks on the organization
needs to be analyzed which in this case is very high. Then the risks needs to be evaluated and
treated with proper strategic planning. The implementation of the strategic plans needs to be
monitored for assessment of the effectiveness.

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References
Aven, T. (2016). Risk assessment and risk management: Review of recent advances on their
foundation. European Journal of Operational Research, 253(1), 1-13.
Bada, S. O., & Olusegun, S. (2015). Constructivism learning theory: A paradigm for teaching
and learning. Journal of Research & Method in Education, 5(6), 66-70.
Bartlett, K. R., Johnson, K. R., & Schneider, I. E. (2016). Comparing strategic human resource
development approaches for tourism and hospitality workforce planning. Journal of
Human Resources in Hospitality & Tourism, 15(4), 440-461.
Chang, K. C. (2016). Effect of servicescape on customer behavioral intentions: Moderating roles
of service climate and employee engagement. International Journal of Hospitality
Management, 53, 116-128.
Dieperink, C., Hegger, D. T., Bakker, M. H. N., Kundzewicz, Z. W., Green, C., & Driessen, P. P.
J. (2016). Recurrent governance challenges in the implementation and alignment of flood
risk management strategies: a review. Water Resources Management, 30(13), 4467-4481.
Fern Resort – No one treats families like FERN!. (2019). Retrieved from https://fernresort.com/
Ariza-Montes, A., Arjona-Fuentes, J. M., Han, H., & Law, R. (2017). Employee
responsibility and basic human values in the hospitality sector. International Journal of
Hospitality Management, 62, 78-87.
Hamlyn, D. W. (2017). The psychology of perception: A philosophical examination of Gestalt
theory and derivative theories of perception. Routledge.

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Lowry, L. L. (Ed.). (2016). The SAGE International Encyclopedia of Travel and Tourism. Sage
publications.
Moutinho, L., & Vargas-Sanchez, A. (Eds.). (2018). Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Schachter, J. A., & Mancarella, P. (2016). Demand response contracts as real options: a
probabilistic evaluation framework under short-term and long-term uncertainties. IEEE
Transactions on Smart Grid, 7(2), 868-878.

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Appendix
ABC Risk Management Template