Risk Management in the Jinjiang International Hotel in China Case Study

Risk Management in the Jinjiang International Hotel in mainland China - Case Study ExampleAccording to Ehrbar (1998) commission of organizational jeopardy 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 be reduced. The wink 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 vow to control and evaluate risks, certain objectives are identified, these i nclude one, identifying the risk in time. The second objective is viewing the likelihood of the risk and the financial impact on the business. The third is allocating resources available for control in order of priorities and later setting gather 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 outlet 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 twisty 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 touch off of decision making and ac t 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. Higuera and Haimes (1996) describe that a good risk plan for managing risk should contain a schedule to control implementation and accountable 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 aliveness around. It offers an ideal location at the center of Wuhans 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 Inter national Airport and 5 minutes from the railway office 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 signature bar, and a retail store. The company provides employment to about 400 people.