Hotel Industry Risk Management: Hotel Owners Must Establish Effective Internal Or Outsourced Risk Reduction Programs To Keep Corporate Insurance Premiums Down And Avoid Legal Violations And Penalties

Little attention is given to the security department as a member of an overall cost-reducing risk-management program. Risk reduction saves money now and in the immediate future and is easily quantifiable

A poorly organized or implemented hotel security program has a direct negative impact on corporate profits. Many organizations are suffering chronically low revenue per available room, resulting in companywide cost-cutting initiatives.

Risk-management considerations are fairly universal and reasonably simple in the hotel industry. Some variations exist, often based on your region and the type of facility you are managing. Some factors to consider that help create an effective program include:

• defining segments of your operation that cause frequent insurance claims resulting in higher corporate insurance premiums;
• determining the elements that will tarnish your brand; and
• assessing what policies and procedural failures or system deficiencies are violations of law, which can lead to crushing civil and criminal penalties.

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