Risk Management in the Jinjiang International Hotel in China Case Study

Risk Management in the Jinjiang International Hotel in China - Case Study Example According to Ehrbar (1998) management of organizational risk is presented with three outcomes. The first one is the intolerable situation which means that the source of the risk has to be abandoned or in cases where the source was technology then it can be replaced. If the risk is a natural hazard then vulnerabilities are reduced. The second outcome is intolerable situations. This shows that risks are to be handled within the limits of practical resource investments. This can be conducted either by corporate risk managers or regulatory agencies. The third outcome is that of acceptable situations. This can only be applied where the risks are small or negligible. This study shows the tools and techniques used in the management of risks and the implementation of the mechanism in both theory and practical examples.In order to control and evaluate risks, certain objectives are identified, these include; one, identifying the risk in time. The second objective is viewing the likelihood of t he risk and the financial impact on the business. The third is allocating resources available for control in order of priorities and later setting clear control objectives. Thompson (2002) shows fraud occurs in many ways depending on the authority granted in Hotels. Hotels are fixed cost and therefore and therefore implementing loss controls measures maximizes cash flows. In order to avoid an occurrence of risks in hotels, the following method should be followed. First one needs to identify and assess the threats involved as well as the vulnerability of critical assets to specific threats (Kotler 1998). Ways of reducing these risks should be identified and the measures based on strategies should be prioritized According to Cannon (1999) the principles of risk management should; create value by improving the organisational position. They should also be part of decision making and act as an integral part of the organisational processes. The principles should also aim at addressing uncertainty through systematic and structured ways basing on the best available information. They should be tailored in order to take account of the human factors. Â  Higuera and Haimes (1996) describe that a good risk plan for managing risk should contain a schedule to control implementation and responsible persons to be appointed for the actions. This paper studies The Jinjiang International Hotel in China that deals with restaurant services, fitness center, internet access, parking, and room service. The five-star deluxe hotels mostly target both tourists and locals living around. It offers an ideal location at the center of Wuhan’s Central Business District. The size of the business is quite large as it can accommodate about 1000 guests per night. It plans to improve its quality in order to bring it to the standards that the guests expect. It is located 30 minutes from the International Airport and 5 minutes from the railway station thus making it a good choice for both businessmen and leisure travelers. The hotel offers leisure, business and meeting standpoints with a destination restaurant, a hot spot bar, and a retail store. The company provides employment to about 400 people.