Business risk originates from different areas from internal and external sources. The best way to manage business hazard is to evaluate danger factors and make contingency plans on how to deal with the risk when and if its presents itself. Managing risk factors is most required and managing the best possible action plan to get over from risk full and uncertain situations. Business includes high danger factors such as financial hazard, management risk, operational endangerment, etc. The present study will be based on managing the risk in business. For that, the same, Jumeirah Hotel will be taken into consideration. Report will be presented by Abacus business consulting services for the selected organization. Jumeirah is a hotel chain which is situated in United Arab Emirates (UAE). It is a Dubai-based international luxury hotel chain and a part of Dubai Holding. The present study will be explaining different essential aspects of range and the best performing task-oriented goals. Overall, it explains the role of risk management to identify and analyze controlling risk.
Identifying the role of hazard management and controlling risk
Risk management may be defined as systematic and proactive activities aimed at the evaluation and treatment of uncertainty and events which can affect the achievement of goals. Overall, risk management will be more impactful for the business functions that affect the business goals and nature of performing long lasting effects (Guideline for the risks' management function, 2017). This involves both positive and negative impacts on the business nature. Risk influence and exploit the correlation between various types of risk. Through company might be facing long term negative effects on the profit revenue
It gives the long lasting nature of fact that helps to bring new opportunity and growth. In order to mitigate the risk factors. Company should recognize their plans and policies in order to identify some major risk factors.
Role of risk management for controlling risk is discussed as below:
- The main role of risk management is to identify the financial impact or losses that organization is facing (Anderson, 2016). Overall, it brings new level of making new ideas and goals in order to make the long lasting efforts and growth.
- Examine the use of realistic and cost effective and knowledge growing methods and task making performance. Besides, manger also needs to take the best fast forward decision to go reduce the possibilities of risk factors.
- The risk manager also needs to monitored the process that helps to assist the development and monitoring changes.
- Emerging risk is another element that must be considered by the risk manager such as new regulatory, fraud, laundering risks and proactively implement risk mitigation measures (Bromiley and et.al., 2015).
Functions of risk management structures and activities
Risk management is the process to identify the major risk possibilities in the business management. It is the long term changes and making good task oriented process and long lasting efforts. Jumeirah Hotel is the large multinational hotel chain that is based on luxurious services. It consists of numerous risk factors and uncertainties in the business function level. There are explaining some functions of the risk management that helps to define the importance of risk management process.
- Policy management: This is the first function that should be considered by company while preparing contingency plan (Charles Jr, Schmidheiny and Watts, 2017). Besides, this function will protect the policy including local and fronting as well as global level of doing things. That helps to make the best and approachable policy making charges and plan for the company.
- Renewal Data collection: Renewal data collection is the process to collect data and required information of management to identify the possibilities of risk.
- Contract Vendor Management: This is another function of risk management to be considered in serious manner that is to collate and manage legal and hazard related contracts for renewals process (Crane and Matten, 2016). This helps to make vendor aware about the future possibilities of risk,
- Enterprise risk management: This function or activity guides and helps to share all company information with the institution auditors. This makes the proper and effective service growth and advantageous growth channel. Overall, it brings the productive channel of advancing channel of improvement and goal oriented process (Epstein, 2018). Overall, it brings the new major challenges and makes the overall, it brings new major objectives and task oriented work that helps to make better changes and growth.
Types of risk faced by businesses
There are so many types of risks faced by companies. There are different types of security risk that impact on the business for short and long-term growth.
- Competitive Risk: The risk that created by the company competitors from such different manner. For example, competitors that have a fundamentally cheaper cost base or a better quality of product.
- Economic risk: Possibilities of fluctuations of risk might be the reason of low profit revenue. Economic risk are generally relates to the instability or uncertain economic growth, that might be long impacting factors.
- Operational Risk: This is another risk that company facing during their functional area overall it brings the new major goals and objective oriented goals (Franks and et.al., 2014). It occurs in day to day activities. Such as customer service process.
- Legal Risk: Legal Risk relates to the laws and regulations that makes the effective process and long lasting effects. Overall, it brings the new major services and growth.
Examination of the Key operations which expose businesses to risk
Hospitality sector is the most competitive as compare to other industries. This become the risk full factor to be make environment certain. Organization tends to take some harmful or challenges decision making approaches (Gibson, 2014). Along with that, such as betting against the law, underdeveloped operational infrastructure, declining services and quality, inability to capture key data. This will be the more challenging and long lasting effects on the nature of the best performance level. Overall, it takes the approachable idea making performance. Key operations of the study will be taken into better performance level and long lasting effectiveness.
Different types of security risk.
Security risks defines the insecurity level of customer or company data. Overall, it makes the best and approachable task oriented goals (Hillson and Murray-Webster, 2017). Due to uncertainty and long lasting effective challenges it requires to be take care of the best possible action plan. Overall, there are various types of risk the best possible action plan will make the best possible action plan for the better advancing performance.
There are providing some types of security risk
Cost justification: this is the security risk that involves additional expense which is generally generated identifiable income, justifying the expense in often difficult.
Productivity: productivity is the security risk that defines the important and more performing task based roles (Leavy, 2015). Company should enhance the productivity level of employees to minimize those risk factors.
Breaking Barriers : organization should also take care of make security protected and effective as per the best performance level.
Assessment business area are particularly vulnerable to security breaches and fraud.
There are some threats and additional overall, it brings the new major goals and task making performance goals. Overall, it also helps to bring better advancing goals. This makes the long challenges and best effective knowledge goals (Nicholas and Steyn, 2017). It makes the proper effective implementation process in order to meet the needs of the organizational goals. Overall, it brings a new effective better environment. These risk might be accidental or intentional according to the major role play system.
Methods and techniques are used to measure the risk factors.
There are various methods and techniques through which risk can identify.
Information gathering techniques
There are similar techniques and goals in order to make the best approachable risk analysis techniques (Reason, 2016). This makes the effective and goal oriented methods to be best and effective. Apart from that it also helps to provide the best effective techniques goals. Information gathering technique helps to collect the information regarding system
Brainstorming is the another method or technique to be implemented according to nature of advance technique in which group of number of people focus on identification of risk for the project.
This is the another technique under which research been held under the experts and responses are compiled sent back to further analysis.
Critical analysis of the actions businesses can take to manage risk
Jumeirah Hotel should implement the risk management process very carefully in order to manage all process effectively (Sadgrove, 2016). Business can faces many several kinds of risk in order to get over from the uncertain situations. There are given some process or action taken by the company to manage risk.
Strategic objectives' decomposition: This step will decompose the risk factors into smaller part to make the effective generating process. Besides, approach those risk and making good things. Overall, it brings the new major goals and target this makes the most lovable and target market growth (Sadiq and Governatori, 2015).
Identifying the factors associated with uncertainty : after breaking down risk into many smaller parts next process is that to use strategy document, financial, model, business plan or the budgeting model that helps to determine key assumptions for further risk analysis. This also makes the good process or goal oriented process.
Performing risk analysis: under this process company requires analyzing the risk assessment process in order to break down and remove in better manner. Risk also might be dangerous for the company existence (Sherman and et.al., 2014).
Turning risk analysis into actions: In this process risk manager should discuss the risk with team members are become the team effective goal oriented process and target market goals. This also makes the process and goal oriented process. This also makes the better target market goals. Adopt some alternatives solutions for risk assessment. Overall, it brings the new major goals and target market plans.
Advantages and disadvantages of businesses having a risk management system.
Assets protection: Risk management will be more helpful to undertake the risk factors and make them management environment risk less and effective. This helps to accomplish the organizational objectives and target market goals (Trevino and Nelson, 2016).
Reputation management: reputation management will also cover the best possible action plan. Besides, it makes the process and best effective. This helps to make better challenging growth and make the good reputation of the company.
Cost associated : This process involves high cost and time taking process. The company also needs to give more attention and effort in analyzing the process of risk assessment.
Complex methods: Some methods are not handled by the managers in the organization due to which company facing issues and challenges during the process handling. Besides, it also helps to take care of the assassination goals and organization-making performance.
Roles and responsibilities of the manager with overall accountability for risk management
The risk manager is the person who holds the all accountability of risk assessment. Through company can free from risk assessment process. Besides, this also makes the process productive and long effective growth (Van Der Vegt and et.al., 2015). There are given some responsibilities of manager against organizations risks factors.
- Planning, designing and implementing the risk management process for the organizations.
- Manager should report to their stakeholders in order to make them aware.
- Conducting audits of policy and compliance to standards.
- Manager should make productive contingency plans to make business risk-free and productive performance.
Role of monitoring and budgeting in risk management
In order to make the better presentable risk performing task to achieve the risk assessment will be taken to the best performing way to enhance the approachable decision-making approach. Risk management plan will be more explaining and long lasting effects in order to build the more challenging performance making work in order to get over from the risk factors (Nicholas and Steyn, 2017). Overall, it brings the long lasting effects. Role of monitoring the risk assessment will contribute the challenging role that makes the approachable decision making approach. This will help to take care of the healthy management goals and helps to accomplish the company goals and objectives level.
Impact of external influences on managing operational risks.
Impact of external influences on managing operational risks has been given great impact on the company environment. Overall, it brings the new level of performing the task in order to make the best performance level. External risk refers to economic risk includes changes in market conditions. Due to unsuitability of economic factors makes the improper changes in the environmental goals. Besides, overall, it requires the natural risk is the another external factors that might be impact full and long lasting factors (Leavy, 2015). Overall, it takes the long terms process to handling the Major changes in the organizations. Overall, required challenges and impact full decision making approach will make the effective and long effectiveness. Besides, there are many external factors that impact on the business channels. Market conditions, culture, Regulatory environment, suppliers, competitive threats.
How integrated risk management reduces the impact of external influences on businesses.
Integrated risk management will help to make understand the risk management growth. It will also help to control the effective process and growth challenges task. Overall, it brings the new major changes and helps to bring better environment growth for the company growth and also helps to take care of the organization goals and objectives making target market goals. Integrated risk management is the approach or method to manage or monitoring the risk effectively and approachable (Nicholas and Steyn, 2017). Apart from that, it will be considering the best approachable target market growth. Besides this integrate method or approach for risk us helpful to reduce the external influential market challenges. Besides, it also helps to make the better challenging task performance level. Integrated risk management helps to improved decision making due ti better understanding of risks. Also, benefited for the organizational goals and task making performance. Overall, it brings new major target market goals.
Relationship between risk and marketing strategy.
Marketing plan and strategy is directly connected to the business performance in the market. Best marketing strategic planning will helpful to reduce the external impact full factors. Marketing plan includes company all major decision plans in order to take the good advantage from the market approach. This will also have the best approachable plans in order to meet the needs of the organization growth and challenges. Overall, it requires the more challenging and fast forward results (Gibson, 2014). One of the primary considerations that any business owner or manager must make when putting together. Relationship with risk and marketing strategies are positive. They both impact on the organization growth. Risk factor helps marketing plan to negative shortfalls that might be impact full on the company profit losses.
Key areas in which businesses are vulnerable to marketing risk
There are some key areas in the business and business organizations. And growth such as pricing, target market, research and development and promotions. These are the same challenges and make better approachable decision making target goals (Crane and Matten, 2016). Pricing strategies is the kind of umbrella. Company generality picks the pricing strategies in order to sustain the profit revenue. Besides, all required better forming strategies and market goals.
Examine the use of benchmarking to reduce risk
Bench marking is the tool and technique that helps to set the target goals for the company. Besides, it also helps to take the long lasting factors in order to make the best approachable task oriented goals. Bench marking helps to improve the business and helps to compete with the competitors level. This is the best way to manage the risk factors and improves the better target goals (Bromiley and et.al., 2015). Overall, it makes the better performing level that makes the most enlarging growth services. This will be more promoting and target goals. Benchmark is helpful to make company clear that weather they are weaker and stronger other than the competitors. Besides on that, bench marking should analyze the business into deeper manner. It also helps to make the better advancing growth channel. Apart from that, it will be more enhancing the better task performing growth (Reason, 2016). All over the world making task, on the other hand this makes the proper effective performance making task.
Contingency planning and crisis management.
Contingency planing -
Contingency planing is a plan devised for an outcome other than in the usual expected plan. It is often used for risk management when as exceptional risk that though unlikely , it would have catastrophic consequences. Contingency plan are often devised by government or businesses. Contingency plan is a course action designed to help an organisation respond effectively to significant future event or situation that may or may not happen. A contingency plan is a key part of this preparation.
Crisis management - an unexpected event leading to major unrest amongst the individuals at the workplace is called organisation crisis management crisis is defined as any emergency situation which disturb the employees as well as leads to instability in the organisation. Crisis affects an individual, group, organisation or society on the whole (Charles Jr, Schmidheiny and Watts, 2017). It affects the organisation that created different level of risk. It helps to identifying the risk and implements reduces particular situation on the organisation .
Explaining why businesses are vulnerable to breaks in business continuity.
In order to take business continue and long lasting. This makes the proper and effective process making task. Besides, it also helps to take the better environmental growth and making high growth channel. Overall, it brings new major activity and goals. That helps to bring new opportunity for the company up gradation. Business continuation plan will make management strong and well experienced to face high challenges and growth. Besides, it also helps to take the long term goals and target market plans (Gibson, 2014). For that company requires taking the contingency or evaluate the process to measure the risk factors.
Crisis management systems make to businesses
Crisis management prepares the individuals to face unexpected developments and the adverse condition in the organisation. Employees adjust well to the sudden changes in the organisation. Employee can understand and analyse the cause of crisis and cope with it in the best possible way. This management helps to the manager advised the strategies to come out of uncertain condition and also decide on the future course of action. This management helps mangers to feel the early signs of crises (Hillson and Murray-Webster, 2017). It has the employees against the aftermaths and take precaution for the same. It has some feature that management included the activity and the process which helps the mangers as well as employees to analyse and understand events which might lead. Crisis management enable the mangers and employees to response effectively to change in the organisation culture. Avoid being too rigid and one should adapt well to changes and new situation (Gibson, 2014).
Get a similar type of report writing from our Assignment help experts!
From the basis of above section, it has been concluded that managing risk management is the crucial and essential process to make the effective learning goals. On the other hand study has been suggested the various aspects of the risk factors that describe the better performing level in order to manage the risk in more productive manner. Apart from that, study will also affect the business growth and long lasting efforts. It also explained types of business risk that makes company more uncertain and involves high risk factors. Overall, impact of external influences on managing operational risks. Overall, it brings the long lasting factors to make the better fast forwards results.
You may also like: Business Law To Run Business Smoothly
- Anderson, G., 2016. How well are you managing your company's reputation risk?. Governance Directions. 68(5). p.290.
- Bromiley, P. and et.al., 2015. Enterprise risk management: Review, critique, and research directions. Long range planning. 48(4). pp.265-276.
- Charles Jr, O. H., Schmidheiny, S. and Watts, P., 2017. Walking the talk: The business case for sustainable development. Routledge.
- Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.
- Epstein, M. J., 2018. Making sustainability work: Best practices in managing and measuring corporate social, environmental and economic impacts. Routledge.
- Franks, D. M. and et.al., 2014. Conflict translates environmental and social risk into business costs. Proceedings of the National Academy of Sciences, p.201405135.
- Gibson, D., 2014. Managing risk in information systems. Jones & Bartlett Publishers.