Rejoy.

Sirvel
Executive MBA
Email rejoy.sirvel@yahoo.com

Table of Contents
1. Executive Summary ....4
2. Introduction to Risk Management ....4
2.1 Examples of the drivers of key Risks .5
3. Types of Possible Risk @ Marriott Sprowston Manor Hotel .6
3.1 Risk Chart ..10
3.2 Risk Table...10
4. Purpose of Strategic Plan ..13
4.1 Status of Strategy Plan ...13
4.2 Key Issues ..14
5. ERM Framework for Marriott Sprowston Manor Hotel ..15
5.1 Enterprise Risk Management Framework Objectives....18
5.2 Enterprise Risk Management Key Concepts .....19
5.3 Implementation of Enterprise Risk Management Process .21
5.4 ERM Communication and Consultation ...22
5.5 Roles & Responsibilities ...23
1

6. Risk Mitigation Action Plan & Responsibilities..24

7. Business Continuity Plan...29
8. Conclusion...30
9. References...30

Table of Figures
Risk Chart -- Figure 1 ..10
ERM Framework -- Figure 2 ..15
ERM Process -- Figure 3 .21
Risk Matrix -- Figure 4 22

1. Executive Summary
This report has designed a strategic risk management plan for Marriott Sprowston Manor Hotel
in Norwich. The objective of the strategic risk management plan is to manage the Hotel risk
swiftly and effectively to an interruption to normal business operations, protecting the associates
and assets of the hotel, and ensuring the continuity of critical business functions.
Enterprise risk management framework is used as a strategy to develop the plan for Hotel to deal
with risk and opportunities by enterprise risk management process. Enterprise risk management
process helps to ensure effective reporting and compliance with laws and regulations, and helps
avoid damage to the business reputation and associated consequences. This report shows how
enterprise risk management helps the Hotel to achieve its objectives and get to where it wants to
go and avoid pitfalls and surprises along the way.

2. Introduction to Risk Management

Risk can be defined as combination of the probability of an event and its consequences. In all
types of understanding, there is the potential for events and consequences that constitute
opportunities for benefit and threats to success.
Risk Management is increasingly recognized as being concerned with both positive and negative
aspects of risk. Therefore this standard considers risk from both perspectives.
Risk Management is a central part of any organizations strategic management. It is the process
whereby organizations methodically address the risks attaching to their activities with the goal of
achieving sustained benefit within each activity and across the portfolio of all activities.
The focus of good risk management is the identification and treatment of these risks. Its
objective is to add maximum sustainable value to all the activities of the organization. It

increases the probability of success, and reduces both the probability of failure and the
uncertainty of achieving the organizations overall objectives.
It must be integrated into the culture of the organization with an effective policy and a
programme led by the most senior management. It must translate the strategy into tactical and
operational objectives, assigning responsibility throughout the organization with each manager
and employee responsible for the management of risk as part of their job description. It supports
accountability, performance measurement and reward, thus promoting operational efficiency at
all levels.

2.1 Examples of the drivers of key Risks

Financial Risk
Externally Driven

Strategic RisksExternally Driven

Competition

Interest Rates

Customer Changes

Foreign Exchange

Industry Changes

Credit

Customer Demand

Internally Driven
Liquidity & Cash Flow

Internally Driven

Research & Development

Accounting Controls

Operational Risk

Hazard Risks

Externally Driven

Externally Driven

Regulations

Natural Events

Culture

Environment

Suppliers

Internally Driven

 Information Systems / Supply Chain Internally Driven - - Products & Services

customers has created a big risk to the hotel

to achieve targeted sales and revenue to run
the hotel. Example - The new government

3. Types of Possible Risk

@ Marriott Sprowston
Manor Hotel

plans of budget cuts in public sector has

affected hotel adversely, as public sector
such as Norfolk county council do not hold

any events or conferences at the hotel. This

There are various ways to think about
has taken off a huge profit making business
risk, and one of the more
of the hotel. While the global economy is not
comprehensive
approaches
to
a free fall as it was, it will be a challenge for
categorize risks into four quadrants
the hotel to remain profitable and successful

A. Financial Risk

in next 5 years.

B. Strategic Risk
Financial risk for the hotel concerns
money, including capital availability,
cash-flow management, investmentStrategic risk arises out of volatility in the
evaluation and credit default. Followinghospitality industry, market changes and
types of financial risk;
challenges to brand and reputation; may
Global Economic Crisis Risk
Economic

conditions

continue

to

challenge hotel to achieve business and

include leadership, competition and owner.

Following types of strategic risk;

Competition Risk

economicIncreasing number of competitors in Norfolk

has created a significant risk to the hotel. It is
downturn it is becoming difficult for
important for Marriott to perform well and to
the hotel to maintain Marriott brand as
be competitive in fast growing market.
a lesser amount of capital given to run Norfolk
profit

margins.

Due

to

the operation. As lack of spending by

have number of different branded hotels providing high quality of service to guest and offering
competitive rates to customers to achieve business. Due to increasing competition in Norfolk the
business at hotel is declining and its has created more complexity for Marriott to attract more
customers and gain business. Because of the recession corporate companies are spending less
and looking to move their business to different hotels for possible competitive rates. It will be a
challenge for Marriott to gain more business and remain competitive in increasing competition.

Reputational Risk
Managing reputational risk is a paramount concern for any organization that has valuable brands;
and brand value is the one of the most important asset. Reputation is very significant for the hotel
to be competitive in fast growing market. Reputation risk is becoming a key source of
competitive advantage as products / services become less differentiated. Failure to provide high
quality of service according to set Marriott brand standards and dissatisfying customer needs
could impair bad hotel reputation. Its very important for the hotel to focus on how to enhance
and protect that asset

C. Operational Risk
Operational risk arises out of the daily operations at the hotel and, ultimately, affects bottom line;
includes the traditionally insurable risks, such as fire, natural disasters, guest and associate
injuries and theft at the hotel; also include many uninsurable risks, such as guest and employee
satisfaction, information security and efficiency in operating the hotel. Following types of
operational risk;

Technology Risk
A failure to keep pace with developments in technology could damage operation or competitive
position. Hospitality industry continue to demand the use of sophisticated technology and
systems, including those used for reservation, revenue management and property management
systems and technologies that are available for guest during their stay. These technologies and
systems must be refined, updated or replaced with more advanced systems on a regular basis. If

hotel is unable to do so as quickly as competitors or within budgeted costs then business could
suffer.

Increasing Cost Risk

High inflation rate and changes in tax and other laws and regulations could reduce profit
margins, and increase the hotel running cost. Example - Food prices are increasing dramatically
which has become difficult for the hotel to achieve food cost of sales. According to Marriott
standards it is very important for the hotel to deliver high quality of food to guest and meet
expectations. It has become inflexible for hotel to control the cost of sales and achieve targeted
profit margins. Due to increasing cost and limited budget to spend, it will be a challenge for the
hotel to sustain profit margins.

Associates (Employees) Risk

If Marriott cannot attract and retain talented associates then business could suffer. Marriott
compete with other companies both within and outside of industry for talented personnel. If
unable to recruit, train, develop, and retain sufficient numbers of talented associates, hotel could
experience increased associate turnover, decreased guest satisfaction, low morale, inefficiency, or
internal control failures, Insufficient numbers of talented associate could also limit the ability to
grow and expand business.

Hazards Risk
Hotels. Large or small, rural or city based, can be hazardous places. The following details
highlight some of the hazards and risks that might exist in hotel. They are by no means
exhaustive and will vary depending on the particular business.

Main Types of Hazards

1. Natural Hazards

2. Technical Hazards

Flooding

Power failure/fluctuation

Fire

HVAC failure

Earthquakes

Computer hardware failure

Tornadoes

Computer software failure

Hurricanes

Gas leaks

Winter storms

Transportation accidents (chemical/biohazard spills)

D. Compliance Risk
Compliance risk such as traditional contract and regulatory compliance; also focuses on accurate
and timely financial reporting, adherence to company policies, and workplace health and safety.

Its Important for a risk manager to manage the hotels risk productively. In doing so, it
can make difference in hotels bottom line, while at the same time protecting the reputation
of Marriott brand.

3.1 Risk Chart

C.A.
D.

B.

Figure 1

3.2 Risk Table

Numbers
A

Types of Risk

Impact / Likelihood

Financial Crisis
Global Economic Crisis
Risk

Very High / Almost Certain

Strategic Risk

Competition Risk

Reputational Risk

High / Likely

Operational Risk

Technology Risk

Increasing Cost Risk

Associate (Employee) Risk

Hazards Risk

Compliance Risk

Very High / likely

High / Moderate

A. Examples of range of operating risk common to the Hotel.

The profitability of the hotels that may be adversely affected by a number of factors that includes
1

Pricing strategies of competitors

The availability of and demand for hotel rooms

International, national and regional economic and geopolitical conditions

The impact of war, actual or threatened terrorist activity and heightened travel
security measures instituted in response to war, terrorist activity or threats

The desirability of particular locations and changes in travel patterns

The occurrence of natural disasters, such as earthquakes, tsunamis, and hurricanes

Taxes and government regulations that influence or determine wages, prices,

interest rates, construction procedures and costs

10

The availability and cost of capital to allow hotel and potential hotel owners and
joint venture partners to fund investments

Regional and national development of competing properties

Foreign currency exchange fluctuations

Increases in wages and other labor costs, energy, healthcare, insurance,

transportation and fuel and other expenses

2. Examples of risk (incidents) that cause direct and indirect disruptions to the

Hotel business
1

Disruption to hotel business can occur through many Direct & in-Direct means

Whilst intentional security related incidents such as Criminal & Terrorism, many
other serious disruptions are created though unintentional Accidental, Climate or
Environmental incidents and disasters

An organization may become a Proximity Victim from an un related external

threat or incident

Direct Disruption Examples

Indirect Disruption Examples

Crime/Fraud/ Terrorism

External Financial Crisis

Fire

Pandemic Issue

Flooding

Currency Fluctuation

Bomb threat

Legislative Practices

IT Failure

Adverse Weather Conditions

Power Outage

Transport Disruptions

High Security Alert

Industrial Action

4. Purpose of Strategic Plan

11

The Strategic plan aims to identify the main objectives and activities that Marriott Sprowston
Manor Hotel will focus on over the next five years.
The most significant issues to be addressed are:1

The development of a risk culture

The integration of risk as a factor in decision making

The importance of the risk management system to the future viability of the Hotel

Key recommendations are:1

That Marriott Approve the strategy plan.

4.1 Status of Strategy Plan

Basic information about the strategy is contained in the table.
Strategy effective from this date

Jan 2011

Strategy Covers this period

Jan 2011 to Jan 2016

Strategy approved by

General Manager / Cluster GM

Strategy to be adopted by the Hotel

Jan 2011

Person Accountable for this strategy

Human Resources Manager

st

1 Person to contact about this strategy

Human Resources Manager

Stakeholders to consult with (minimum)

GM, Executive Directors, Managers, Staff

Performance will be reported through

Management Plan

This strategy must be reviewed at least

Annually

This Plan is an integral support document for the organization and guide for the Hotel and policy
making in the area of risk management.

4.2 Key Issues

12

Strengths :-

Opportunities :-

Well Managed

integration of current systems with risk

Financially Sound operation

More awareness of risk management

management
Utilization of talented staff

standards over recent years

Regular committee meetings

Weaknesses :

Process

Threats :documentation

in

risk

management is lacking
Lack of knowledge at a supervisor level
regarding risk management
Resources

appear to be inadequate in

the risk management areas

Bad risk may occur due to lack of

process documentation
Poor Decision making as a result of not
enough emphasis on risk analysis
Risk of bad reputation as not
maintaining the brand standards.

Recording important information

5. ERM Framework for Marriott Sprowston Manor Hotel

13

ERM Framework -- Figure 2

This enterprise risk management strategy is chosen for the Marriott Sprowston Manor hotel to
deal with risks and opportunities and to manage risk by enterprise risk management process.
With the enterprise risk management framework, it will enable Marriott to mitigate risk for the
smooth flow of business.

Risk Management is important to the operations of the hotel. The identification, assessment and
control of all risks are important to the successful achievement of the hotels vision and mission.
An important part of the enterprise risk management strategy is the development of processes for
the smooth flow of business. As a Marriott brand it is important for the hotel to maintain the
standards and provide high quality of service to customer, and maintain the reputation risk.
Marriott Sprowston Hotel is subject to various risks that could have a negative effect on the
company and its financial condition. Marriott considers the skills, resources and technology
required to manage and monitor risk exposures in the context of risk appetite. It does this by
helping staff to understand the relative significance of the risks faced by the hotel and thus better
priorities risk monitoring and control activities. The aim of the plan is to plot the risk for the
hotel for next 5 years that might impact on adverse incidents and may interrupt normal business

1
4

operations. This plan will show the implementation of strategies in hotel operation for efficient
flow during the 5 years period.

Example -Marriott recognizes that it is too late to plan an effective response to an adverse incident
and resulting business interruption once the incident has occurred.
The extraordinary events that have occurred since September 2001 have only served to re
emphasize the need and to be prepared to respond to old as well as new challenges to the
world in which it operate. As the old adage tells, Failing to Prepare is Preparing to Fail

Enterprise business risk is defined as threats to the organization's capability to achieve its
objectives and execute its business strategies successfully. The organization's value creation
objectives

define the context for management's determination of risk management goals and

objectives

which, in turn, drive and focus the process of managing business risk.

The top face of the cube in figure 2 indicates that enterprise risk management spans the
hotels decision making process both strategically and its day to day operation. Enterprise
risk management is also integrated into the hotels reporting structure and all that it does
to meet compliance. The right hand side of the cube demonstrates that enterprise risk
management is considered throughout all levels of the hotel. The eight interrelated
components represented on the front face of the cube form the basis for establishing and
putting enterprise risk management into practice at the hotel. Each component is described
in more detail as follows;

Internal Environment The internal environment comprises the Hotels history, culture,
values, organizational structure, strategy, policies and procedures. It forms the foundation for
1

defining the hotels risk approach and risk appetite.

Objective Setting The objective setting is the process of determining the strategic objectives
for the Hotel and its risk strategy. The Hotels risk tolerance and the alignment between its risk
appetite and its objectives form part of the overall hotel strategy.

Event Identification Event identification describes those developments either or external to

the Hotel that could significantly affect its ability to meet its strategic objectives, either positively
or negatively. In order to assure that the full scope of the Hotel is considered, event and trend
identification is done broadly engaging the management team.

Risk Assessment Risk Assessment describes the extent to which potential events and trends
might affect Hotels objectives. Events and trends are assessed by two criteria impact and
likelihood. Risk assessment can be done by qualitative or quantitative methods. Inherent and
residual risk assessments are employed. Both positive and negative impacts of events should be
examined.

Risk Response The risk response is assessed for each risk event and trend by considering the
Hotels risk tolerance. Typical risk responses considered for a risk event include avoidance,
reduction, transferring, sharing or acceptance.

Control Activities Control activities include the policies, procedures, reporting and initiatives
performed by the Hotel to ensure that the desired risk response is carried out. These activities
take place at all levels and functions of the hotel.

Information and Communication Hotel information and communication regarding risk

management is identified, captured and communicated broadly to enable all personnel to deliver
on their responsibilities.

16

Monitoring Monitoring refers to managing risk in the course of day to day operations.
Periodic evaluations where management defines the scope, methodology and frequency are done
to ensure currency of information in the Hotel business.

Enterprise risk management is not strictly a serial process, where one component affects only the
next. It is a multinational, iterative process in which almost any component can and does
influence another.

5.1 Enterprise Risk Management Framework Objectives

Enterprise risk management through the application of the framework objectives aids in the
achievement of the Hotel strategic priorities and advances the management practices at the hotel
specially, the ERM framework objectives are to:

A. Incorporate a consistent approach to risk management into the culture and strategic planning
process of the hotel, supporting the setting of priorities and making of decision making at the
management level within the operation.

B. Apply a consistent approach to risk response and control activities to support the hotel
governance responsibilities for innovation and responsible risk taking, policy development,
programs and objectives. In all cases appropriate measures will be put in place to address
unfavorable impacts from risks and favorable benefits from opportunities.

C. Manage a transparent approach to risk through formal and informal communication and
monitoring of all key risks, balancing the cost of managing the risk with the anticipated benefit.
Risk management practices will be adapted to encompass best practices, specific circumstances
and mandate.

5.2 Enterprise Risk Management Key Concepts

17

A hotel has complicated operations generating a risk that is broad and diverse. Risk is defined as
those potential events and trends that may significantly affect the hotels ability to achieve its
strategic goals or maintain its operation either positively or negatively. Once the event or trend
happens, it is no longer a risk; rather it is an issue for the hotel to deal with.

Good Managers address risk by implicitly building it into their programming and decision
making. The enterprise risk management framework is a methodology that formalizes risk
management and provides an all encompassing view of risk in order to aid in the operation of the
hotel.

A. The enterprise risk manager facilitates achieving the hotels strategic objectives by bringing a
systematic approach to evaluating and improving the effectiveness of risk management and
control.
B. All risks facing the hotel whether quantifiable or not is to be considered. Several types of risk
that are not easily quantified can potentially hold significant impact on a hotel, e.g. reputation,
customer experience.

C. All risks facing the hotel will be evaluated based on the likelihood of the risk occurring as
well as the impact on the Hotel if the risk event were to occur. The likelihood and impact of each
risks is evaluated both at an inherent (without Management) and residual (with Management)
level.
D. The following elements are essential when managing risk:-

1. Assurance: - Stakeholders are assured that risk is being managed within the hotels risk
tolerance and receive information regarding the quality and type of control in place.

2. Oversight and responsibility: - All critical risks facing the hotel have been identified,
managed and reported on at a level and frequency that support the hotels risk tolerance.

18

3. Ownership: - Risks owners are assigned and understand their responsibility for management,
oversight and assurance.
E. Risk response for identified risks will be assessed according to the hotels risk appetite.
The Five possible risk responses are to:-

o Avoid (eliminate) the risk;

o Reduce (mitigate) the risk;
o Transfer the risk (e.g. insurance);
o Share the risk; or,
o

Accept the risk.

F. A formal or informal evaluation of risk will be considered depending on the scope of the
decision or action taken at the Hotel. This will be done both at the onset and throughout the life
of the decision or action. Where applicable and quantifiable, the expected cost of the risk will be
considered in the business case used in the decision and evaluation process.

G. There will be a desire to learn from events that have transpired the risk management process
is a cycle where experience providers key information for new decision and actions. Open and
appropriate communication of results and lessons learned is required to facilitate learning.
H. The hotel business risk will be evaluated annually. New risks will be considered. Risks no
longer relevant will be removed. The risk will be refreshed by rating the likelihood and impact
for each risk. The information is used to prioritize the risks and this in turn flows into the Hotels
business planning cycle.

5.3 Implementation of Enterprise Risk Management Process

The hotel process for risk management is shown below in figure 3 and is simply a flow chart of
expression of the front face of the cube shown in Figure 2. The process is continues and can be
applied at the hotel business level.
19

Internal
Environment

Objective
setting

Event
identification

Risk
Assessment

Risk
Response

Control
Activities

Information /
Communicati
on
Monitoring

ERM Process -- Figure 3

A. ERM Risk Matrix and corresponding Management Action
Risk is evaluated by two criteria likelihood and Impact. Figure 4 displays a matrix that
graphically represents impact and likelihood of each risk, as well as the corresponding
Management action. The Color gradient from green (low) to red (high) provides a comparative
level of priority when evaluating the hotels risk. The matrix is used to evaluate risk at the
inherent (without management) and residual (with management) levels. The corresponding
Management action suggests the appropriate response for risk assessed in that area of the matrix.
B. Risk Matrix and Corresponding Management Action
Risk Management Actions
Impact

Significant

Moderate

Considerable

Must manage

Extensive

management

and

management

required

monitor risks

essential

Risks may be

Management

Management

worth

effort

effort
20

accepting with

worthwhile

required

Accept

Accept,

Manage and

risk

but monitor

monitor

risk

risks

Low

Medium

High

36 month

18 to 36 months

12-18 months

monitoring
Minor

Likelihood
Risk Matrix -- Figure 4

5.4 ERM Communication and Consultation

Effective enterprise risk management requires information to be obtained of the hotel for
identifying, assessing and responding risk. Consultation will be as broad as possible within the
hotel business and use a variety of approaches. Hotel personnel will be encouraged to identify
risks that are both internal and external to the business. The knowledge gained through ERM will
be communicated in a relevant form and timeframe enabling Hotel personnel to carry out their
responsibilities while incorporating risk management.

5.5 Roles & Responsibilities

Everyone in an entity has some responsibility for enterprise risk management. The general
manager of the hotel is ultimately responsible and should assume ownership. Other Managers
support the hotels risk management philosophy; promote compliance with its risk appetite and
mange risks within their spheres of responsibility consistent with risk tolerance. A risk officer,
financial officer, internal auditor and others usually have key support responsibilities. Other
entity personnel are responsible for executing enterprise risk management in accordance with
established directives and protocols. The general manager provides important oversight to
enterprise risk management, and is aware of and concurs with the entitys risk appetite. A number

of external parties, such as customers, vendors, business partners, external auditors, regulators
and financial analysts often provide information useful in effecting enterprise risk
21

management, but they are not responsible for the effectiveness of, nor are they a part of, the
entitys enterprise risk management.
Position

Responsibilities
The General Manager should discuss with the Executive Directors the
state of the hotels enterprise risk management and provide oversight

General Manager

as needed. The GM should ensure it is apprised of the most significant

risks, along with actions management is taking and how it is ensuring
effective enterprise risk management. The General Manager should
consider seeking input from internal auditors and external auditors and
others.
The study suggests that Executive Directors assess the hotels

Executive Directors

enterprise risk management capabilities. In one approach the

Executive Directors brings together business unit heads and key
functional staff to discuss an initial assessment of enterprise risk
management capabilities and effectiveness. Whatever its form, an
initial assessment should determine whether there is a need for and
how to proceed with, a broader, more in dept evaluation.
Managers and other Personnel should consider how they are

Managers & other

conducting their responsibilities in light of this framework and discuss

Personnels

with more senior personnel ideas for strengthening enterprise risk

management. Internal auditors should consider the breadth of their
focus on enterprise risk management.

With this foundation for mutual understanding, all parties will be able to speak a common
language and communicate more effectively. Management will be positioned to assess the hotel
enterprise risk management process against a standard, and strengthen the process and move the
enterprise toward established goals.

6. Risk Mitigation Action Plan & Responsibilities

22

Focus Area & Actions

Who

When

A. Financial Risk :-

Economic and Financial Crisis Risk

To enhance technology and revenue

General Manager / Executive

management tool that will enable to

Directors

monitor and respond quickly to the

changing landscape

2011 Jan
2016)
Annually

Reduce investment in business

expansion

01/11 / Review
between Jan

General Manager / Executive Review between

Directors

(Jan2011 Jan
2016)

To preserve profit margin

lines by

driving revenue, increasing

market

share and managing costs

Quarterly

and debt, General Manager / Executive

this is important to keep the business

Directors

Review between
(Jan 2011 Jan
2016)

healthy and preserve as many jobs as

possible.

Develop

promotions

strategies to
incremental

and

help hotel
revenue

and

Monthly review

sales
to drive General Manager / Director
capture
of Sales

greater market share

Cancel bonuses of

all

2011 Jan
2016)
Annually

head of

departments within the hotel that will

between (Jan

General Manager / Finance

Review between

23

help to cover the debt

Director

(Jan 2011 Jan

2016)

B. Strategic Risk :-

Competition Risk
Implement pricing strategy tool and

General Manager / Executive

offer competitive prices to customers

Directors

Develop effective marketing plan to

01/11 / Review
Between (Jan
2011 Jan
2016)
Annually

be successful in the competitive

Director of Sales

market

review between
(Jan 2011 Jan
2016)

To

understand

weaknesses

of

strengths
the hotels

&
in

competitive set and classify the hotels

Quarterly
Director of Sales/ Sales

review between

Executive / Sales Team

(Jan 2011 Jan

unique features to sell the product and

2016 )

winning the competition

To offer discounted rates to customer

General Manager / Executive

Directors

Daily review

Provide high quality and standard

service to customers and satisfy needs

Managers / Team Leaders

between (Jan
2011 Jan

in order to be competitive in market.

between (Jan
2011 Jan 2016

to gain business

Monthly review

2016)
Reputational Risk

Develop good brand image in order to

be competitive in market

General Manager / Executive

Regular review
between (Jan

24

Provide high quality of service to

guest and satisfy needs for excellent
reputation

Directors

2011 Jan 2016

Hotel Associates

Regular review
between (Jan

Manage guest complaints effectively

so it doesnt affect the reputation

2011 Jan 2016

General Manager / Executive
Directors

Regular review
between (Jan
2011 Jan 2016

C. Operational Risk :-

Technology Risk
Improve technology and systems, and

Information Resources

update or replace to advanced system

Manager

Regular review
between (Jan
2011 Jan 2016

on regular basis

Provide training to all the associates

Information Resources

and its importance for business

Manager

Increasing Cost Risk

to increase revenue
Review and control costs for smooth

To reduce capital expenditure

other miscellaneous costs

2011 Jan 2016

meet

General Manager / Director

between (Jan

of Finance

2011 Jan 2016

General Manager / Director

Regular review

of Finance

between (Jan

profit margin line.

between (Jan

01/11/ review

Implement tool to minimize cost and

functioning of business and to

Regular review

2011 Jan 2016

and
General Manager / Director
of Finance

Annually
review between
(Jan 2011 Jan

Associates (Employees) Risk

25

2016)
1

Hire talented associates for business

development

Regular review
between (Jan

Provide training to associates on

regular intervals to offer standardized

General Manager / Executive

Directors

service and satisfy customer expectations

2016)

To look after associates and in turn

Regular review

associates will look after customers and

increase business

2011 Jan

Hazard Risk

General Manager / Executive

between (Jan

Director

2011 Jan
2016)

Implement policies and procedures to

minimize harm to associates and visitors
and to control and mitigate damage to
property and equipment

Procedures for evacuation

assembly point at hotel

and

Implement Procedures to contain the

01/11 / review
between (Jan

Loss & Prevention Director 2011 Jan 2016)

operational, service and public image

impacts of an adverse incident and to
manage and communicate information
regarding the incident.
2
6

D. Compliance Risk :

Policies & procedures to ensure health

safety standards are maintained

Quarterly
Loss & Prevention Director

Conduct Health & Safety audit to

review between
(Jan 2011 Jan

meet the compliance

2016)

7. Business Continuity Plan

Business continuity plan is a strategic plan that can also be used to manage risk and achieving
goals & objectives of the hotel.
Business Continuity Planning can be defined as a process which provides for the continuation of
critical business functions regardless of any event (called an Adverse Incident) that may interrupt
normal business operations. In the words the Company's Business Continuity is:
A process that can be implemented by Marriott management to ensure that Adverse Incidents are
responded to appropriately and timely, and, if the Adverse Incidents result in a business
interruption, to ensure the timely resumption of Mission Critical processes in a prioritized and
pre-planned manner.
Marriott's can compose a Business Continuity Program in four interdependent components,
which can together ensure a timely and appropriate response to an Adverse Incident:
A. Emergency Response:
Procedures to minimize harm to customers and associates and damage to facilities
and equipment
B. Crisis Management:Procedures to contain the operational, service and public image impacts of an Adverse Incident
and manage and communicate information.
27

C. Disaster Recovery: Procedures to ensure the availability of mission critical computer systems, applications and
telecommunications
D. Business Resumption:Procedures to ensure the continuity and/or resumption of business operations in the event of a
partial or complete closure of a Marriott-managed property or corporate office.
The above four components will enable Marriott hotel to respond swiftly and effectively to an
interruption to normal business operation, protecting associates and assets, and ensuring the
continuity of critical business functions.

8. Conclusion
This report has developed the strategic risk management plan for Marriott Sprowston Manor
hotel to manage the hotel business risk and mitigating the risk. The main aim was to devise a
strategic risk management plan for next 5 years. The pan has developed an Enterprise risk
management strategy to respond the hotel risk effectively within a specific risk category.
Every step has taken to ensure that there was continuity throughout the whole plan and each risk
management elements are explained in detail. This will enable to understand each and every step
of risk management plan clearly. Continue assessment of all the modes will make the strategic
risk management plan successful and protect the Marriott brand in the fast growing hospitality
industry.

9. References
1. Strategic Risk Risk management & different types of risk in business (Viewed 24
Nov)
< http://www.strategicrisk.co.uk/>

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2. The Risk Management Universe: A Guided Tour by David Hillson Risk management
best practices and future development, understanding risk, (Viewed Nov 2010)
3. World Economic Forum Global Risk Report 2010 (Viewed 26

rd

Nov 2010)

< http://www.weforum.org/en/initiatives/globalrisk2010//index.htm>

th

4. IRM -- Risk Management Standard (Viewed 28 Nov, 2010) <

http://www.theirm.org/publications/documents/Risk_Management_Standard_030820.pdf
5. Enterprise Risk Management Integrated Framework - (Viewed 29

th

Nov

2010) < http://www.idkk.gov.tr/>

6. Marriott Global Source MGS Risk Management Strategy and Process (Viewed 1
Dec 2010)
< http://extranet.marriott.com>
7. Lecture Notes

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