Risk Management: a Casino Hotel - Case Study Example

Of-course the first one is not matching with the basic aim of the business and about the last one before we feel the positive side of it we have to go through the tackling issues initially. In order to lessen their effect one has to understand the various risks that business is exposed to (Crouchy M). The basic step to embark upon this issue is to make an inventory of all possible reasons that are directly or indirectly influencing the performance of the business and then try to mitigate them.

 Risks are categorized into the following forms:1) Structural Risk: It includes risk associated with the firm itself. The security issue is one of the major parts of it. Guests must be secured enough from any sort of criminal activity inside the hotel. A single anti-peace incident may fall down its market. To overcome it to a great extent, the casino has its own security employees. They take care of any such violence on the premises and also special weapon checking facility has been implemented.

Next comes risk linked with cheating and theft. As it's related to gambling games so, cheating is obvious. Management needs to observe closely whether any of their customer or hotel itself is getting cheated or not.2) Growth Risk: Risks arising from the expected future performance is related to growth risk. It's not a monopolistic market rather, there is strong competition and hotel authority must struggle for its existence. Management provides well-structured perks and benefits to their members in order to retain them and also very often to the others to attract more customers.

Other than this, arrangements for special programs during festive days are taken so that, in the market, it is more highlighted.3) External Sensitivity Risk: There are some cases like an increase in government taxes, political revolution, or an increase in the foreign exchange rate which directly impacts the business. Though management doesn't have straight access to solve them but maintaining a good relationship with customers as well as political parties sometimes give good returns. ConclusionRisk and management are the two prime components of a business.

Unless and until risk comes into the picture, business never gets its potential to sustain its growth and gradually loses its existence. Some of the risk factors of the casino hotel have been illustrated but truly there are enormous, same as problems in our daily life. Management has been trying to run smoothly against the risks but the question over here is, how long Will it be a never-ending process or just a journey towards a very narrow passage!