Enterprise risk management is determined as methods and processes which are used by organizations to manage risk and improve business execution. In addition to that, accepting opportunities are identified with the help of enterprise risk management (Bromiley et al. 2016). Present study deals with organizational aims and objectives that are present within Hilton Hotel. It can be said that risk threshold and risk actions are identified with respect to the organization. Apart from that, identification of opportunities and threats which are found within the organization have been analysed. Existing controls and risk mitigation approaches have been discussed with respect to the firm.
Hilton Hotel in the UK is a well-known hospitality service hotels group that serves its customers with an environmentally friendly nature. In addition to that, the hotel is found to be using carbon-free electricity. The aims of the hotel are as follows:
● To reduce energy consumption by 20%
● To provide carbon-free electricity within 69 hotels of its brand
● To boost food and beverage revenue
● To increase customer satisfaction
The organization is found to increase its development in modern technologies for enhancing valuable services to its guests. The mission statement of the company is to be the most hospitable company in the world. The vision statement is to strive the company into better innovation in the hospitality industry (Hilton.com, 2020). The core values that are followed with the organization are teamwork, integrity, ownership and leadership. The major risks which are faced by the organization are mainly technological, operational, legal and organizational. These risks that are faced by the hotel group are found to have a negative impact on its business. Along with that, the company is found to have reduced customer satisfaction.
Acceptable risk threshold and use into risk actions
Likelihood is defined as the probability of risk that is found within an organization. In addition to that, it can be said that likelihood helps in analysing the impact of risk that is faced by an organization. As opined by Malik et al. (2020), firm performance depends on risk assessment of the organization. The risk management process that is followed is considered for reducing risk changes within business. In the case of Hilton hotels, the likelihood of getting into risk factors is found to have a negative impact on its business. On the other hand, impact of sales is defined as the success rate that is identified within today’s business environment. Hilton hotel is found to deliver quantified business to its customers and gain more recognition. The technological risk that is found within the company is related to lack of security and privacy and security breaches. On the other hand, operational risks are faced due to poor branding and food safety (Pwc.co.uk, 2020). Apart from that, legal issues are Narrow Sense of GDPR and Brexit Issues and organizational risks are Poor Guest Behaviour due to Less Staff Motivation and Engagement.
From the above discussion, it can be concluded that Hilton hotel faces troubles due to every risk that is identified by managers and leaders of the organization. In addition to that, the company is found to have a negative presentation among its guests which reduces chances of increasing productivity. Along with that, the phases of risks are found to be impactful in each aspect and allows the company to obtain low sales and revenue in business. It is also seen that Hilton hotel has high equipped staff who are responsible for providing exceptional services to its guests. However, due to operational risks, the employees remain less motivated and are unable to serve within their potential. Opportunities and challenges are found to be equal within an organization due to which Hilton hotel requires proper identification of risks and tries to mitigate them within time.
It can further be concluded that mitigation aspects which are followed by the company help in reducing further future risks and allows in better business. It is also seen that staff recruitment is improved for better services to guests. Apart from that, Brexit changes identified have been highlighted due to which legal risks are mitigated with the help of risk avoidance strategy. Furthermore, risk retention strategy is followed to reduce high chances of organizational risks in business. Nonetheless, proper accommodation is provided to loyal customers who have frequent visits to Hilton hotel. It can also be concluded that likelihood and impact that has been determined for every risk helps in determining its impact and its effect within the organization. Hospitality management business is considered as one of the toughest businesses that is executed within the UK. This is because companies are unable to depict, identify and determine risk factors. This reduces revenue and recognition in business. Apart from that, the companies are unable to implement proper risk strategies due to which huge losses are found within Hilton hotel chains.
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