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Risk Profile for a Hotel - Essay Example

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Summary to essay on topic "Risk Profile for a Hotel"
Every business faces risk and we have three choices about what we should do with them. One is we can do nothing and let the risk pass through to investors in the business-stockholders in a publicly traded firm and the owner. Secondly, we can protect ourselves from them by various approaches and finally, we can intentionally increase our exposure to various risks because we feel that it has several advantages in a competitive market…
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Download file "Risk Profile for a Hotel" to see previous pages... 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. This essay mainly concentrates on a casino hotel -------------------- (name one hotel nearby your domicile); various risks involved with it and the ways adopted by management to overcome these issues.
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1) Structural Risk: It includes risk associated with the firm itself. Security issue is one of the major parts of it. Guests must be secured enough from any sort of criminal activities inside the hotel. A single anti-peace incident may fall down its market. To overcome it to a great extend, casino has its own security employees. They take care of any such violence in 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 expected future performance is related to growth risk. ...Download file "Risk Profile for a Hotel" to see next pagesRead More
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