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The emerging importance of risk management and enterprise risk management strategies in the Indian hospitality industry

The emerging importance of risk management and enterprise risk management strategies in the... The purpose of this paper is to discuss the outlook for risk management and enterprise risk management (ERM) within the hospitality sector including how ERM is being balanced with the need to innovate, and what boards of directors are doing to become more engaged in risk oversight. The implementation of ERM is about taking a strategic view of risk and linking it to business goals and value creation.Design/methodology/approachAn interviewer-administered survey was used to collect data from 33 senior risk professionals and other industry experts who had a clear understanding of both risk management and ERM. A structured and semi-structured questionnaire consisting of three sections was personally administered to 33 respondents in 2018 to collect information from risk professionals and other industry experts.FindingsIt is important to create a culture of risk awareness and to incorporate risk planning into business decisions. The complexity of modern business necessitates that managers in the hospitality sector have greater skill levels than ever before. This research should help hospitality managers to better understand the core risks and link them to strategy. ERM creates an environment where the organization as a whole can support the value creation process with a sharper focus on risk management.Practical implicationsThe growing role of technology along with human connections is shaping the hospitality sector and redefining the travel ecosystem. Future travel experiences are likely to be influenced by a blend of technology and human experiences. Many Indian companies are applying the traditional risk management model in their businesses, while ERM is their future goal. The evolution from a traditional risk management model to ERM is challenging, and so it is important to have an appropriate framework in place for its implementation.Originality/valueHospitality managers need to know how to proactively manage risk management and ERM as the sector is increasingly vulnerable to internal risks. ERM creates a direct linkage between risks and opportunities required for decision-making in a dynamic environment. With growing competition on a global level, the hospitality industry should aim to manage risks strategically to increase the likelihood that organizational objectives can be achieved. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Worldwide Hospitality and Tourism Themes Emerald Publishing

The emerging importance of risk management and enterprise risk management strategies in the Indian hospitality industry

Worldwide Hospitality and Tourism Themes , Volume 11 (4): 12 – Aug 12, 2019

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References (26)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1755-4217
DOI
10.1108/whatt-04-2019-0023
Publisher site
See Article on Publisher Site

Abstract

The purpose of this paper is to discuss the outlook for risk management and enterprise risk management (ERM) within the hospitality sector including how ERM is being balanced with the need to innovate, and what boards of directors are doing to become more engaged in risk oversight. The implementation of ERM is about taking a strategic view of risk and linking it to business goals and value creation.Design/methodology/approachAn interviewer-administered survey was used to collect data from 33 senior risk professionals and other industry experts who had a clear understanding of both risk management and ERM. A structured and semi-structured questionnaire consisting of three sections was personally administered to 33 respondents in 2018 to collect information from risk professionals and other industry experts.FindingsIt is important to create a culture of risk awareness and to incorporate risk planning into business decisions. The complexity of modern business necessitates that managers in the hospitality sector have greater skill levels than ever before. This research should help hospitality managers to better understand the core risks and link them to strategy. ERM creates an environment where the organization as a whole can support the value creation process with a sharper focus on risk management.Practical implicationsThe growing role of technology along with human connections is shaping the hospitality sector and redefining the travel ecosystem. Future travel experiences are likely to be influenced by a blend of technology and human experiences. Many Indian companies are applying the traditional risk management model in their businesses, while ERM is their future goal. The evolution from a traditional risk management model to ERM is challenging, and so it is important to have an appropriate framework in place for its implementation.Originality/valueHospitality managers need to know how to proactively manage risk management and ERM as the sector is increasingly vulnerable to internal risks. ERM creates a direct linkage between risks and opportunities required for decision-making in a dynamic environment. With growing competition on a global level, the hospitality industry should aim to manage risks strategically to increase the likelihood that organizational objectives can be achieved.

Journal

Worldwide Hospitality and Tourism ThemesEmerald Publishing

Published: Aug 12, 2019

Keywords: Risk management; Hospitality; Enterprise risk management; Operational risk; Compliance risk; Strategic risk

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