Risk Management Strategies for the Hotel and Hospitality Sector

This report focuses on risk management within the hotel and hospitality industry. It covers crucial areas such as property risk management, including valuation and replacement costs, and premises risk, emphasizing safety codes for hazardous areas. The report also addresses liquor and automotive liability, highlighting employee training and outsourced services. Furthermore, it examines data privacy, emphasizing security protocols and employee training to prevent fraudulent activities. The report also covers infectious diseases, advising consultation with air quality professionals, and legal issues, emphasizing the importance of understanding and adhering to laws governing the industry, including accommodations, insurance, and foodservice regulations. The report stresses the significant responsibility of hotel owners and managers in ensuring the safety and well-being of guests and staff, and it concludes with a list of relevant references.

HOTEL AND HOSPITALITY
MANAGEMENT
Running Head: HOTEL AND HOSPITALITY MANAGEMENT 0

HOTEL AND HOSPITALITY MANAGEMENT 1
Table of Contents
Risk Management............................................................................................................................2
Property risk management...........................................................................................................2
Premises risk................................................................................................................................2
Liquor liability.............................................................................................................................2
Automotive liability.....................................................................................................................2
Data privacy.................................................................................................................................2
Infectious Diseases......................................................................................................................3
Legal issues......................................................................................................................................3
References........................................................................................................................................4

HOTEL AND HOSPITALITY MANAGEMENT 2
Risk Management
The hospitality industry has faced a large amount of risk. Management of risk is very
critical for the hospitality industry to run a business smoothly (Ponting, 2015). Following risks
need to be managed by the hospitality industry.
Property risk management
The coverage of an organization should include a valuation of the replacement cost. This
coverage has limits to improve damaged content of the building.
Premises risk
This is necessary to establish safety codes in hazardous areas like elevators, floor
covering, railings, and stairways. There should be a system of back up lighting to support the
industry.
Liquor liability
Employees that serves alcohol in a hotel should be trained to know when a customer has
consumed access to alcohol to prevent excessive drinking.
Automotive liability
A hired person for driving should include a responsibility to view motor vehicle records
as a part of the interview process. Outsourced automotive services can be applied. A contractual
risk transfer also provides an independent contractor service to industry (Xun & Gursoy, 2015).
Data privacy
By lowering the risk to stay on top protocols of security keeps the system up to date.
Consistent training of employee useful to discover fraudulent credit card use. Insurance in place
covers both third and first-parties like data breach coverage and cyber liability.

HOTEL AND HOSPITALITY MANAGEMENT 3
Infectious Diseases
Consultant with air quality professionals as it develops the best procedure and practice to
control and protect the health of guests (Jang, 2011).
Legal issues
Managing legal issues in hospitality is a wide topic. Hotel and hospitality industry is
large itself and laws governing the hotel and hospitality industry are detailed and sometimes
complex. As an employee, it is necessary to know an obligation to the law. As management or
employer, it is necessary to understand the obligations to the law. As a manager, it is also
necessary to focus on the laws that consist of a specific area of employment. Owner of the hotel
and hospitality business has much heavier responsibility about the staff and employees to do as
well (Kwangmin, 2011).
 Common laws must be adhered to supplying accommodations to the guest.
 Regulations of insurance come to conventions group of travel clients.
 This is necessary to know about the way of application to the lodgings or food sector of the
industry. This is the most common areas for lawsuits within the industry of hospitality.
 The laws, rules, and regulation of the foodservice industry are within the industry of hotel or
hospitality.
 This is important for the employees and employers to well verse in the laws of fire regulation.
Everyone that involved in the industry of hospitality must realize that laws in not to be taken
lightly. Dealing with the general public must safeguard wellbeing and safety. This is important in
planning to move into a position of management. Managing the hospitality industry legal issues
is a great responsibility by establishing law itself.

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References
Jang, S. (2011, 479-497 2011). Risk Management in Hospitality. International Journal of
Contemporary Hospitality Management, 23(04), 479-497. Retrieved from International
Journal of Contemporary Hospitality Management.
Kwangmin, P. (2011). Management of Legal Issues. Journal of Hospitality & Tourism Research,
35(03), 381-416.
Ponting, A. (2015, 09 25). Specialist Business. Retrieved from Santam:
https://www.santam.co.za/about-us/media/specialist-business/risk-management-in-the-
hospitality-industry/
Xun, X., & Gursoy, D. (2015). Automotive Liability. Journal of Hospitality Marketing &
Management, 24(03), 229-259.