Risk and Compliance in Hospitality Industry- Myassignmenthelp.com

Question: Discuss about the Risk and Compliance in Hospitality Industry. Answer: Introduction The severity of the risks in hospitality industry is similar to the other industries in this business market. The increasing demands of the stakeholders, advancements and business innovations, and frequent competitions are the major challenges for the companies. Therefore, most of the companies undertake the innovative procedure to strengthen the competitive position (McNeil, Frey Embrechts, 2015). During such time, most of the companies face the severe risks that affect the organisational determinations and reputation in a significant way. Similarly, the hospitality industries have been facing the challenges with the risk and compliance system. The study will analyze the risk and compliance process of Orion Hotel and Resort in Australia. The analysis of the risk severity and the risk treatment plan will be included in the study. The further implication will also be discussed in this research paper. Identification of two risks In keeping pace with the developing global economy, the number of the business and innovations process is also increasing (Prez del Bosque, 2014). Hence, the business risks are becoming more visible these days. The hospitality industry is also significantly affected by these risks. Similarly, Orion Hotel and Resorts has been facing the potential challenges in two major segments. First issue is found in maintaining the cyber security. It is notable that the cyber security has been one of the major concerns for different industries (Ghaderi, Saboori Khoshkam, 2017). The hotel has to collect the adequate information about the guests to ensure the securities. Currently, the management of Orion Hotel and Resorts has been facing challenges in keeping the privacy and confidential information in the computer. Some of the internet hackers are now getting access to the internal computer security, which is the biggest threat to the companys reputation (Van der Wagen Goonetilleke, 2015). On the other hand, it has been observed that currently, the hotel has been receiving the negative remarks and reviews from the guests due to the ill-behaviour of the staffs. It is notable that may of the guests behave much rudely. When they are not satisfied with any service, they sometimes yell at the staffs. However, it is necessary for the staffs to keep the patience and behave politely (Cavusoglu et al., 2015). Instead of such polite behaviour, it was complained that the staffs are much rude and they do not have the sufficient knowledge about the hotel norms and services. These potential risks are much hazardous for the company to maintain the long-term sustainability (Tung Chen Schuckert, 2017). Moreover, the company has been facing the reputational hazards that may affect the business profitability. The further study will thus analyze the likability of these risks that may cause the reputational damage. Likelihood of the Risks and Consequences In a risk management process, it is essential to measure the likelihood and severity of the risks. The likelihood analysis would provide the ideas about the risk potentiality that can be harmful for the organisation. Probability Impact Very Low 1 Low 2 Medium 3 High 4 Very High 5 Very High 5 5 10 15 20 25 High 4 4 8 12 16 20 Medium 3 3 6 9 12 15 Low 2 2 4 6 8 10 Very Low 1 1 2 3 4 5 Table 1: Risk Likelihood (Source: Created by Author) The low risk probability with the high impact ensures the severe form of the risks (Law, Buhalis Cobanoglu, 2014). For example, the privacy breaching has the low probability but the impact is high will be a sever risk for the hotel. On the other hand, the risk occurrence of the poor staff behaviour with the guests is medium in the probability whereas the impact is very high. Hence, these risks cannot be ignored. If these risks would be ignored, it will create the potential damage to the organisational profitability as well as the sustainability (Lee Oh, 2014). Hence, it is essential for the company to develop the proper risk management plan that can mitigate such issues and risk and retain the sustainable position in a competitive market. Risk Treatment Plan Considering the above risks and their severity, it is essential to develop the proper risk treatment plan to retain the reputed position of the business. The plan is structured below. Risk Description Control Effectiveness Risk Treatment Monitor Review Implementation Status Treatment Action Responsibility Implementation Date 1) Security Breaching Highly Effective Extra Security Software Improvement of the information technology Evaluation of the cloud technology to restore the data Biometric sensor The risk management team 16th June, 2017 Once in a week In progress 2) Poor staff behaviour Highly effective Hospitality Training Proper knowledge transfer Hotel Manager and Human Resource Management 14th June 2017 In every two days In progress Table 2: Risk Treatment Plan (Source: Created by the Author) Recommendation The above analysis provides the ideas about the underlying risks and probable solutions for mitigating the risks. It is necessary to undertake the procedures for reducing the risks and protect the reputational damage. Some of the preferable recommendations are provided below: 1) Security Breaching is one of the major concerns for both the company and the stakeholders. However, it can be suggested that the implementation of the improved information technology would be beneficial for the company to keep the confidential data protected from the hackers. Moreover, development of the cloud computing would also be helpful in storing the data in a safer place. 2) It is necessary to provide the proper hospitality training to the staffs associated with the hotels. They need to keep the patience level high while dealing with the abusive guests even. The polite behaviour is necessary in the hospitality sector. Hence, the proper hospitality training would be much beneficial in providing the quality services to the guests and deal with them politely. Conclusion The study identifies the potential risks in Orion Hotel and Restaurant in Australia. It has been observed that the company is currently facing the issues with the data privacy and security process. The poor management system is causing the loss of guest data that can create the marginalized effects on the companys sustainability. On the other hand, the review of the guests point out that staff behaviour was not even polite. Hence, it is essential for the company to develop the IT security. On the other hand, the staffs will receive the proper hospitality training to maintain a friendly and polite relationship with the guests. Evaluation The risk management plan for both the case study signifies the different method of handling the risk management procedures. In order to evaluate the different methods, it is necessary to identify the different risks occurred in the different scenario. It has been noted that the major risk was found in Orion Hotel and Resort was the lack of proper security and the poor staff behaviour. On the other hand, the Five Star Hotel in Melbourne has been facing the issues with the staff turnover, personal injury or death, unsuitable hiring, information breaching, and discriminatory practices. The main implication for the Orion Hotel and Resort was to implement extra security and software that can protect the data, especially the information of the staffs. On the contrary, the Five Star Hotel in Melbourne minimizes the risks of staff turnover by offering potential for advancements and maintaining flexibility to balance the workload. The hotel is also encouraging the employees with the friendly behaviour. The Orion Hotel and Resort is also undertaking the scheduled planning for effective training and development session. It is one of the most effective methods of improving the staffs behaviour. The Five Star Hotel in Melbourne is also undertaking the training and development session as well as the closer supervision of the staffs. The maintenance of the monitoring and reviewing process is much helpful in determining the effective staff behaviour at the hotel industry. The customer service is the major aspect of ensuring sustainability of the hotel industry. It is to be stated that the guests are influenced by the behaviour of the attendants. The hospitality management is the major focus of every hotel industry. The human resource management takes the active participation in arranging the proper training and development session. Another most significant factor in the hotel industry is the protection of the information. The data breaching can create the negative impact on the company in a significant way. Hence, it is essential to develop the software security to prevent the data breaching aspect. It is notable that the human resource management even needs to concentrate on the recruitment process to engage the suitable candidate. It is necessary to maintain the reputation of the Five Star Hotel that will be judged by the customer review. Hence, satisfying the customers with proper hospitality is essential for the companies. Hence, the process of mi nimizing the emerging risks is quite beneficial to maintain the reputation and long-term sustainability. Keeping the personal information in a safer way is another most specific requirement that the hotel industry need to maintain. Implementing the risk assessment plan can change the likelihood of the severity of the risks. The authorized person should be appointed to handle the entire information. The human resource management needs to engage those staffs with proper authentication to handle such security issues. The maintenance of the security performance would thus be effective enough in protecting the data of the associated staffs as well as the higher management. Accordingly, the hotel industry can deal with all the probable risks that may harm the long term sustainability References Cavusoglu, H., Cavusoglu, H., Son, J. Y., Benbasat, I. (2015). Institutional pressures in security management: Direct and indirect influences on organizational investment in information security control resources.Information Management,52(4), 385-400. Ghaderi, Z., Saboori, B., Khoshkam, M. (2017). Does security matter in tourism demand?.Current Issues in Tourism,20(6), 552-565. Law, R., Buhalis, D., Cobanoglu, C. (2014). Progress on information and communication technologies in hospitality and tourism.International Journal of Contemporary Hospitality Management,26(5), 727-750. Lee, S., Oh, H. (2014). Effective communication strategies for hotel guests green behavior.Cornell Hospitality Quarterly,55(1), 52-63. McNeil, A. J., Frey, R., Embrechts, P. (2015).Quantitative risk management: Concepts, techniques and tools. Princeton university press. 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