Rejoy.Sirvel Executive MBA Email rejoy.sirvel@yahoo.

com

Table of Contents
1. Executive Summary ....4 2. Introduction to Risk Management ....4
2.1 Examples of the drivers of key Risks .5

3. Types of Possible Risk @ Marriott Sprowston Manor Hotel .6

3.1 Risk Chart ..10 3.2 Risk Table...10

4. Purpose of Strategic Plan ..13

4.1 Status of Strategy Plan ...13 4.2 Key Issues ..14

5. ERM Framework for Marriott Sprowston Manor Hotel ..15

5.1 Enterprise Risk Management Framework Objectives....18 5.2 Enterprise Risk Management Key Concepts .....19 5.3 Implementation of Enterprise Risk Management Process .21 5.4 ERM Communication and Consultation ...22 5.5 Roles & Responsibilities ...23
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6. Risk Mitigation Action Plan & Responsibilities..24 7. Business Continuity Plan...29 8. Conclusion...30 9. References...30

Table of Figures
Risk Chart -- Figure 1 ..10 ERM Framework -- Figure 2 ..15 ERM Process -- Figure 3 .21 Risk Matrix -- Figure 4 22

1. Executive Summary
This report has designed a strategic risk management plan for Marriott Sprowston Manor Hotel in Norwich. The objective of the strategic risk management plan is to manage the Hotel risk swiftly and effectively to an interruption to normal business operations, protecting the associates and assets of the hotel, and ensuring the continuity of critical business functions. Enterprise risk management framework is used as a strategy to develop the plan for Hotel to deal with risk and opportunities by enterprise risk management process. Enterprise risk management process helps to ensure effective reporting and compliance with laws and regulations, and helps avoid damage to the business reputation and associated consequences. This report shows how enterprise risk management helps the Hotel to achieve its objectives and get to where it wants to go and avoid pitfalls and surprises along the way.

2. Introduction to Risk Management

Risk can be defined as combination of the probability of an event and its consequences. In all types of understanding, there is the potential for events and consequences that constitute opportunities for benefit and threats to success. Risk Management is increasingly recognized as being concerned with both positive and negative aspects of risk. Therefore this standard considers risk from both perspectives. Risk Management is a central part of any organizations strategic management. It is the process whereby organizations methodically address the risks attaching to their activities with the goal of achieving sustained benefit within each activity and across the portfolio of all activities. The focus of good risk management is the identification and treatment of these risks. Its objective is to add maximum sustainable value to all the activities of the organization. It
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increases the probability of success, and reduces both the probability of failure and the uncertainty of achieving the organizations overall objectives. It must be integrated into the culture of the organization with an effective policy and a programme led by the most senior management. It must translate the strategy into tactical and operational objectives, assigning responsibility throughout the organization with each manager and employee responsible for the management of risk as part of their job description. It supports accountability, performance measurement and reward, thus promoting operational efficiency at all levels.

2.1 Examples of the drivers of key Risks

Financial Risk
Externally Driven Interest Rates Foreign Exchange Credit

Strategic RisksExternally Driven

Competition Customer Changes Industry Changes Customer Demand

Internally Driven Liquidity & Cash Flow Accounting Controls

Internally Driven Research & Development

Operational Risk
Externally Driven Regulations Culture

Hazard Risks
Externally Driven Natural Events Environment Suppliers

Internally Driven

Information Systems / Supply Chain

Internally Driven - - Products & Services

3. Types of Possible Risk @ Marriott Sprowston Manor Hotel

There are various ways to think about risk, and one of the more comprehensive approaches to categorize risks into four quadrants

A. Financial Risk
Financial risk for the hotel concerns money, including capital availability, cash-flow management, investment evaluation and credit default. Following types of financial risk;

Global Economic Crisis Risk

Economic conditions continue to challenge hotel to achieve business and profit margins. Due to economic downturn it is becoming difficult for the hotel to maintain Marriott brand as a lesser amount of capital given to run the operation. As lack of spending by customers has created a big risk to the hotel to achieve targeted sales and revenue to run the hotel. Example - The new government plans of budget cuts in public sector has affected hotel adversely, as public sector such as Norfolk county council do not hold any events or conferences at the hotel. This has taken off a huge profit making business of the hotel. While the global economy is not a free fall as it was, it will be a challenge for the hotel to remain profitable and successful in next 5 years.

B. Strategic Risk
Strategic risk arises out of volatility in the hospitality industry, market changes and challenges to brand and reputation; may include leadership, competition and owner. Following types of strategic risk;

Competition Risk
Increasing number of competitors in Norfolk has created a significant risk to the hotel. It is important for Marriott to perform well and to be competitive in fast growing market. Norfolk
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have number of different branded hotels providing high quality of service to guest and offering competitive rates to customers to achieve business. Due to increasing competition in Norfolk the business at hotel is declining and its has created more complexity for Marriott to attract more customers and gain business. Because of the recession corporate companies are spending less and looking to move their business to different hotels for possible competitive rates. It will be a challenge for Marriott to gain more business and remain competitive in increasing competition.

Reputational Risk
Managing reputational risk is a paramount concern for any organization that has valuable brands; and brand value is the one of the most important asset. Reputation is very significant for the hotel to be competitive in fast growing market. Reputation risk is becoming a key source of competitive advantage as products / services become less differentiated. Failure to provide high quality of service according to set Marriott brand standards and dissatisfying customer needs could impair bad hotel reputation. Its very important for the hotel to focus on how to enhance and protect that asset

C. Operational Risk
Operational risk arises out of the daily operations at the hotel and, ultimately, affects bottom line; includes the traditionally insurable risks, such as fire, natural disasters, guest and associate injuries and theft at the hotel; also include many uninsurable risks, such as guest and employee satisfaction, information security and efficiency in operating the hotel. Following types of operational risk;

Technology Risk
A failure to keep pace with developments in technology could damage operation or competitive position. Hospitality industry continue to demand the use of sophisticated technology and systems, including those used for reservation, revenue management and property management systems and technologies that are available for guest during their stay. These technologies and systems must be refined, updated or replaced with more advanced systems on a regular basis. If

hotel is unable to do so as quickly as competitors or within budgeted costs then business could suffer.

Increasing Cost Risk

High inflation rate and changes in tax and other laws and regulations could reduce profit margins, and increase the hotel running cost. Example - Food prices are increasing dramatically which has become difficult for the hotel to achieve food cost of sales. According to Marriott standards it is very important for the hotel to deliver high quality of food to guest and meet expectations. It has become inflexible for hotel to control the cost of sales and achieve targeted profit margins. Due to increasing cost and limited budget to spend, it will be a challenge for the hotel to sustain profit margins.

Associates (Employees) Risk

If Marriott cannot attract and retain talented associates then business could suffer. Marriott compete with other companies both within and outside of industry for talented personnel. If unable to recruit, train, develop, and retain sufficient numbers of talented associates, hotel could experience increased associate turnover, decreased guest satisfaction, low morale, inefficiency, or internal control failures, Insufficient numbers of talented associate could also limit the ability to grow and expand business.

Hazards Risk
Hotels. Large or small, rural or city based, can be hazardous places. The following details highlight some of the hazards and risks that might exist in hotel. They are by no means exhaustive and will vary depending on the particular business.

Main Types of Hazards

1. Natural Hazards

2. Technical Hazards Power failure/fluctuation HVAC failure Computer hardware failure Computer software failure Gas leaks Transportation accidents (chemical/biohazard spills)

Flooding Fire Earthquakes Tornadoes Hurricanes Winter storms

D. Compliance Risk
Compliance risk such as traditional contract and regulatory compliance; also focuses on accurate and timely financial reporting, adherence to company policies, and workplace health and safety. Its Important for a risk manager to manage the hotels risk productively. In doing so, it can make difference in hotels bottom line, while at the same time protecting the reputation of Marriott brand.

3.1 Risk Chart

C. D. B.

A.

Figure 1

3.2 Risk Table

Numbers

Types of Risk

Impact / Likelihood

Financial Crisis Global Risk

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Economic

Crisis

Very High / Almost Certain

Strategic Risk Competition Risk Reputational Risk High / Likely

Operational Risk Technology Risk Increasing Cost Risk Associate (Employee) Risk Hazards Risk Very High / likely

Compliance Risk

High / Moderate

A. Examples of range of operating risk common to the Hotel.

The profitability of the hotels that may be adversely affected by a number of factors that includes

Pricing strategies of competitors The availability of and demand for hotel rooms International, national and regional economic and geopolitical conditions The impact of war, actual or threatened terrorist activity and heightened travel security measures instituted in response to war, terrorist activity or threats The desirability of particular locations and changes in travel patterns The occurrence of natural disasters, such as earthquakes, tsunamis, and hurricanes Taxes and government regulations that influence or determine wages, prices, interest rates, construction procedures and costs
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The availability and cost of capital to allow hotel and potential hotel owners and joint venture partners to fund investments Regional and national development of competing properties Foreign currency exchange fluctuations Increases in wages and other labor costs, energy, healthcare, insurance, transportation and fuel and other expenses

B. Examples of risk (incidents) that cause direct and indirect disruptions to the Hotel business
Disruption to hotel business can occur through many Direct & in-Direct means Whilst intentional security related incidents such as Criminal & Terrorism, many other serious disruptions are created though unintentional Accidental, Climate or

Environmental incidents and disasters An organization may become a Proximity Victim from an un related external threat or incident

Direct Disruption Examples

Indirect Disruption Examples

Crime/Fraud/ Terrorism Fire Flooding Bomb threat IT Failure Power Outage High Security Alert Industrial Action

External Financial Crisis Pandemic Issue Currency Fluctuation Legislative Practices Adverse Weather Conditions Transport Disruptions

4. Purpose of Strategic Plan

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The Strategic plan aims to identify the main objectives and activities that Marriott Sprowston Manor Hotel will focus on over the next five years.

The most significant issues to be addressed are:

The development of a risk culture The integration of risk as a factor in decision making The importance of the risk management system to the future viability of the Hotel

Key recommendations are: That Marriott Approve the strategy plan.

4.1 Status of Strategy Plan

Basic information about the strategy is contained in the table. Strategy effective from this date Strategy Covers this period Strategy approved by Strategy to be adopted by the Hotel Person Accountable for this strategy 1st Person to contact about this strategy Stakeholders to consult with (minimum) Performance will be reported through This strategy must be reviewed at least Jan 2011 Jan 2011 to Jan 2016 General Manager / Cluster GM Jan 2011 Human Resources Manager Human Resources Manager GM, Executive Directors, Managers, Staff Management Plan Annually

This Plan is an integral support document for the organization and guide for the Hotel and policy making in the area of risk management.

4.2 Key Issues

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Strengths : Well Managed Financially Sound operation

Opportunities : integration of current systems with risk management Utilization of talented staff

More awareness of risk management standards over recent years

Regular committee meetings

Weaknesses : Process documentation in risk

Threats : Bad risk may occur due to lack of process documentation Poor Decision making as a result of not enough emphasis on risk analysis Risk of bad reputation as not

management is lacking Lack of knowledge at a supervisor level regarding risk management Resources appear to be inadequate in the risk management areas Recording important information

maintaining the brand standards.

5. ERM Framework for Marriott Sprowston Manor Hotel

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ERM Framework -- Figure 2 This enterprise risk management strategy is chosen for the Marriott Sprowston Manor hotel to deal with risks and opportunities and to manage risk by enterprise risk management process. With the enterprise risk management framework, it will enable Marriott to mitigate risk for the smooth flow of business.

Risk Management is important to the operations of the hotel. The identification, assessment and control of all risks are important to the successful achievement of the hotels vision and mission. An important part of the enterprise risk management strategy is the development of processes for the smooth flow of business. As a Marriott brand it is important for the hotel to maintain the standards and provide high quality of service to customer, and maintain the reputation risk. Marriott Sprowston Hotel is subject to various risks that could have a negative effect on the company and its financial condition. Marriott considers the skills, resources and technology required to manage and monitor risk exposures in the context of risk appetite. It does this by helping staff to understand the relative significance of the risks faced by the hotel and thus better priorities risk monitoring and control activities. The aim of the plan is to plot the risk for the hotel for next 5 years that might impact on adverse incidents and may interrupt normal business
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operations. This plan will show the implementation of strategies in hotel operation for efficient flow during the 5 years period.

Example -Marriott recognizes that it is too late to plan an effective response to an adverse incident and resulting business interruption once the incident has occurred. The extraordinary events that have occurred since September 2001 have only served to re emphasize the need and to be prepared to respond to old as well as new challenges to the world in which it operate. As the old adage tells, Failing to Prepare is Preparing to Fail

Enterprise business risk is defined as threats to the organization's capability to achieve its objectives and execute its business strategies successfully. The organization's value creation objectives define the context for management's determination of risk management goals and objectives which, in turn, drive and focus the process of managing business risk.

The top face of the cube in figure 2 indicates that enterprise risk management spans the hotels decision making process both strategically and its day to day operation. Enterprise risk management is also integrated into the hotels reporting structure and all that it does to meet compliance. The right hand side of the cube demonstrates that enterprise risk management is considered throughout all levels of the hotel. The eight interrelated components represented on the front face of the cube form the basis for establishing and putting enterprise risk management into practice at the hotel. Each component is described in more detail as follows;

Internal Environment The internal environment comprises the Hotels history, culture, values, organizational structure, strategy, policies and procedures. It forms the foundation for
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defining the hotels risk approach and risk appetite. Objective Setting The objective setting is the process of determining the strategic objectives for the Hotel and its risk strategy. The Hotels risk tolerance and the alignment between its risk appetite and its objectives form part of the overall hotel strategy. Event Identification Event identification describes those developments either or external to the Hotel that could significantly affect its ability to meet its strategic objectives, either positively or negatively. In order to assure that the full scope of the Hotel is considered, event and trend identification is done broadly engaging the management team. Risk Assessment Risk Assessment describes the extent to which potential events and trends might affect Hotels objectives. Events and trends are assessed by two criteria impact and likelihood. Risk assessment can be done by qualitative or quantitative methods. Inherent and residual risk assessments are employed. Both positive and negative impacts of events should be examined.

Risk Response The risk response is assessed for each risk event and trend by considering the Hotels risk tolerance. Typical risk responses considered for a risk event include avoidance, reduction, transferring, sharing or acceptance. Control Activities Control activities include the policies, procedures, reporting and initiatives performed by the Hotel to ensure that the desired risk response is carried out. These activities take place at all levels and functions of the hotel.

Information and Communication Hotel information and communication regarding risk management is identified, captured and communicated broadly to enable all personnel to deliver on their responsibilities.
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Monitoring Monitoring refers to managing risk in the course of day to day operations. Periodic evaluations where management defines the scope, methodology and frequency are done to ensure currency of information in the Hotel business.

Enterprise risk management is not strictly a serial process, where one component affects only the next. It is a multinational, iterative process in which almost any component can and does influence another.

5.1 Enterprise Risk Management Framework Objectives

Enterprise risk management through the application of the framework objectives aids in the achievement of the Hotel strategic priorities and advances the management practices at the hotel specially, the ERM framework objectives are to:

A. Incorporate a consistent approach to risk management into the culture and strategic planning process of the hotel, supporting the setting of priorities and making of decision making at the management level within the operation.

B. Apply a consistent approach to risk response and control activities to support the hotel governance responsibilities for innovation and responsible risk taking, policy development, programs and objectives. In all cases appropriate measures will be put in place to address unfavorable impacts from risks and favorable benefits from opportunities.

C. Manage a transparent approach to risk through formal and informal communication and monitoring of all key risks, balancing the cost of managing the risk with the anticipated benefit. Risk management practices will be adapted to encompass best practices, specific circumstances and mandate.

5.2 Enterprise Risk Management Key Concepts

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A hotel has complicated operations generating a risk that is broad and diverse. Risk is defined as those potential events and trends that may significantly affect the hotels ability to achieve its strategic goals or maintain its operation either positively or negatively. Once the event or trend happens, it is no longer a risk; rather it is an issue for the hotel to deal with.

Good Managers address risk by implicitly building it into their programming and decision making. The enterprise risk management framework is a methodology that formalizes risk management and provides an all encompassing view of risk in order to aid in the operation of the hotel. A. The enterprise risk manager facilitates achieving the hotels strategic objectives by bringing a systematic approach to evaluating and improving the effectiveness of risk management and control. B. All risks facing the hotel whether quantifiable or not is to be considered. Several types of risk that are not easily quantified can potentially hold significant impact on a hotel, e.g. reputation, customer experience.

C. All risks facing the hotel will be evaluated based on the likelihood of the risk occurring as well as the impact on the Hotel if the risk event were to occur. The likelihood and impact of each risks is evaluated both at an inherent (without Management) and residual (with Management) level.

D. The following elements are essential when managing risk:1. Assurance: - Stakeholders are assured that risk is being managed within the hotels risk tolerance and receive information regarding the quality and type of control in place.

2. Oversight and responsibility: - All critical risks facing the hotel have been identified, managed and reported on at a level and frequency that support the hotels risk tolerance.
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3. Ownership: - Risks owners are assigned and understand their responsibility for management, oversight and assurance. E. Risk response for identified risks will be assessed according to the hotels risk appetite. The Five possible risk responses are to:o Avoid (eliminate) the risk; o Reduce (mitigate) the risk; o Transfer the risk (e.g. insurance); o Share the risk; or, o Accept the risk.

F. A formal or informal evaluation of risk will be considered depending on the scope of the decision or action taken at the Hotel. This will be done both at the onset and throughout the life of the decision or action. Where applicable and quantifiable, the expected cost of the risk will be considered in the business case used in the decision and evaluation process. G. There will be a desire to learn from events that have transpired the risk management process is a cycle where experience providers key information for new decision and actions. Open and appropriate communication of results and lessons learned is required to facilitate learning. H. The hotel business risk will be evaluated annually. New risks will be considered. Risks no longer relevant will be removed. The risk will be refreshed by rating the likelihood and impact for each risk. The information is used to prioritize the risks and this in turn flows into the Hotels business planning cycle.

5.3 Implementation of Enterprise Risk Management Process

The hotel process for risk management is shown below in figure 3 and is simply a flow chart of expression of the front face of the cube shown in Figure 2. The process is continues and can be applied at the hotel business level.
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Internal Environment

Objective setting

Event identification

Risk Assessment

Risk Response

Information / Communicati on Monitoring

Control Activities

ERM Process -- Figure 3

A. ERM Risk Matrix and corresponding Management Action Risk is evaluated by two criteria likelihood and Impact. Figure 4 displays a matrix that graphically represents impact and likelihood of each risk, as well as the corresponding Management action. The Color gradient from green (low) to red (high) provides a comparative level of priority when evaluating the hotels risk. The matrix is used to evaluate risk at the inherent (without management) and residual (with management) levels. The corresponding Management action suggests the appropriate response for risk assessed in that area of the matrix.

B. Risk Matrix and Corresponding Management Action Risk Management Actions Impact

Considerable Significant management required

Must manage and monitor risks

Extensive management essential

Moderate

Risks may be worth

Management effort

Management effort
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accepting with monitoring

worthwhile

required

Minor

Accept risk

Accept, but monitor risk

Manage and monitor risks High 12-18 months

Low 36 month

Medium 18 to 36 months Likelihood

Risk Matrix -- Figure 4

5.4 ERM Communication and Consultation

Effective enterprise risk management requires information to be obtained of the hotel for identifying, assessing and responding risk. Consultation will be as broad as possible within the hotel business and use a variety of approaches. Hotel personnel will be encouraged to identify risks that are both internal and external to the business. The knowledge gained through ERM will be communicated in a relevant form and timeframe enabling Hotel personnel to carry out their responsibilities while incorporating risk management.

5.5 Roles & Responsibilities

Everyone in an entity has some responsibility for enterprise risk management. The general manager of the hotel is ultimately responsible and should assume ownership. Other Managers support the hotels risk management philosophy; promote compliance with its risk appetite and mange risks within their spheres of responsibility consistent with risk tolerance. A risk officer, financial officer, internal auditor and others usually have key support responsibilities. Other entity personnel are responsible for executing enterprise risk management in accordance with established directives and protocols. The general manager provides important oversight to enterprise risk management, and is aware of and concurs with the entitys risk appetite. A number of external parties, such as customers, vendors, business partners, external auditors, regulators and financial analysts often provide information useful in effecting enterprise risk
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management, but they are not responsible for the effectiveness of, nor are they a part of, the entitys enterprise risk management.

Position

Responsibilities The General Manager should discuss with the Executive Directors the state of the hotels enterprise risk management and provide oversight

General Manager

as needed. The GM should ensure it is apprised of the most significant risks, along with actions management is taking and how it is ensuring effective enterprise risk management. The General Manager should consider seeking input from internal auditors and external auditors and others. The study suggests that Executive Directors assess the hotels

Executive Directors

enterprise risk management capabilities. In one approach the Executive Directors brings together business unit heads and key functional staff to discuss an initial assessment of enterprise risk management capabilities and effectiveness. Whatever its form, an initial assessment should determine whether there is a need for and how to proceed with, a broader, more in dept evaluation. Managers and other Personnel should consider how they are

Managers & other Personnels

conducting their responsibilities in light of this framework and discuss with more senior personnel ideas for strengthening enterprise risk management. Internal auditors should consider the breadth of their focus on enterprise risk management.

With this foundation for mutual understanding, all parties will be able to speak a common language and communicate more effectively. Management will be positioned to assess the hotel enterprise risk management process against a standard, and strengthen the process and move the enterprise toward established goals.

6. Risk Mitigation Action Plan & Responsibilities

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Focus Area & Actions

Who

When

A. Financial Risk : Economic and Financial Crisis Risk To enhance technology and revenue management tool that will enable to monitor and respond quickly to the changing landscape General Manager / Executive Reduce expansion investment in business Directors Annually Review between (Jan2011 Jan 2016) General Manager / Executive Directors 01/11 / Review between Jan 2011 Jan 2016)

To preserve profit margin lines by driving revenue, increasing market share and managing costs and debt, this is important to keep the business healthy and preserve as many jobs as possible. General Manager / Executive Directors

Quarterly Review between (Jan 2011 Jan 2016)

Develop

promotions

and

sales General Manager / Director of Sales

Monthly review between (Jan 2011 Jan 2016) Annually General Manager / Finance Review between
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strategies to help hotel to drive incremental revenue and capture

greater market share Cancel bonuses of all head of departments within the hotel that will

help to cover the debt

Director

(Jan 2011 Jan 2016)

B. Strategic Risk : Competition Risk Implement pricing strategy tool and offer competitive prices to customers Develop effective marketing plan to be successful in the competitive market Director of Sales General Manager / Executive Directors 01/11 / Review Between (Jan 2011 Jan 2016) Annually review between (Jan 2011 Jan 2016)

To

understand of

strengths the hotels

& in Director of Sales/ Sales Executive / Sales Team

Quarterly review between (Jan 2011 Jan 2016 ) General Manager / Executive Monthly review between (Jan 2011 Jan 2016 Daily review Managers / Team Leaders between (Jan 2011 Jan 2016)

weaknesses

competitive set and classify the hotels unique features to sell the product and winning the competition To offer discounted rates to customer to gain business Provide high quality and standard service to customers and satisfy needs in order to be competitive in market. Reputational Risk

Directors

Regular review Develop good brand image in order to be competitive in market

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General Manager / Executive

between (Jan

Provide high quality of service to guest and satisfy needs for excellent reputation

Directors Hotel Associates

2011 Jan 2016 Regular review between (Jan 2011 Jan 2016

Manage guest complaints effectively so it doesnt affect the reputation General Manager / Executive Directors

Regular review between (Jan 2011 Jan 2016

C. Operational Risk : Technology Risk Improve technology and systems, and update or replace to advanced system on regular basis Provide training to all the associates and its importance for business Increasing Cost Risk Implement tool to minimize cost and to increase revenue Review and control costs for smooth functioning of business and to meet profit margin line. To reduce capital expenditure and other miscellaneous costs Associates (Employees) Risk General Manager / Director of Finance General Manager / Director of Finance General Manager / Director of Finance Information Resources Manager Regular review between (Jan 2011 Jan 2016 01/11/ review between (Jan 2011 Jan 2016 Regular review between (Jan 2011 Jan 2016 Annually review between (Jan 2011 Jan
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Regular review Information Resources Manager between (Jan 2011 Jan 2016

Hire talented associates for business development

2016) Regular review General Manager / Executive Directors between (Jan 2011 Jan 2016)

Provide training to associates on regular intervals to offer standardized service and satisfy customer

expectations

To look after associates and in turn associates will look after customers and increase business General Manager / Executive Director

Regular review between (Jan 2011 Jan 2016)

Hazard Risk Implement policies and procedures to minimize harm to associates and visitors and to control and mitigate damage to property and equipment Procedures for evacuation and Loss & Prevention Director Implement Procedures to contain the operational, service and public image impacts of an adverse incident and to manage and communicate information regarding the incident.

01/11 / review between (Jan 2011 Jan 2016)

assembly point at hotel

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D. Compliance Risk : Policies & procedures to ensure health safety standards are maintained Conduct Health & Safety audit to meet the compliance Loss & Prevention Director Quarterly review between (Jan 2011 Jan 2016)

7. Business Continuity Plan

Business continuity plan is a strategic plan that can also be used to manage risk and achieving goals & objectives of the hotel. Business Continuity Planning can be defined as a process which provides for the continuation of critical business functions regardless of any event (called an Adverse Incident) that may interrupt normal business operations. In the words the Company's Business Continuity is: A process that can be implemented by Marriott management to ensure that Adverse Incidents are responded to appropriately and timely, and, if the Adverse Incidents result in a business interruption, to ensure the timely resumption of Mission Critical processes in a prioritized and pre-planned manner. Marriott's can compose a Business Continuity Program in four interdependent components, which can together ensure a timely and appropriate response to an Adverse Incident: A. Emergency Response: Procedures to minimize harm to customers and associates and damage to facilities and equipment B. Crisis Management:Procedures to contain the operational, service and public image impacts of an Adverse Incident and manage and communicate information.
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C. Disaster Recovery: Procedures to ensure the availability of mission critical computer systems, applications and telecommunications D. Business Resumption:Procedures to ensure the continuity and/or resumption of business operations in the event of a partial or complete closure of a Marriott-managed property or corporate office. The above four components will enable Marriott hotel to respond swiftly and effectively to an interruption to normal business operation, protecting associates and assets, and ensuring the continuity of critical business functions.

8. Conclusion
This report has developed the strategic risk management plan for Marriott Sprowston Manor hotel to manage the hotel business risk and mitigating the risk. The main aim was to devise a strategic risk management plan for next 5 years. The pan has developed an Enterprise risk management strategy to respond the hotel risk effectively within a specific risk category. Every step has taken to ensure that there was continuity throughout the whole plan and each risk management elements are explained in detail. This will enable to understand each and every step of risk management plan clearly. Continue assessment of all the modes will make the strategic risk management plan successful and protect the Marriott brand in the fast growing hospitality industry.

9. References
1. Strategic Risk Risk management & different types of risk in business (Viewed 24th Nov) <http://www.strategicrisk.co.uk/>

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2. The Risk Management Universe: A Guided Tour by David Hillson Risk management best practices and future development, understanding risk, (Viewed Nov 2010) 3. World Economic Forum Global Risk Report 2010 (Viewed 26rd Nov 2010) <http://www.weforum.org/en/initiatives/globalrisk2010//index.htm>

4. IRM -- Risk Management Standard (Viewed 28th Nov, 2010) <http://www.theirm.org/publications/documents/Risk_Management_Standard_030820.pdf 5. Enterprise Risk Management Integrated Framework - (Viewed 29th Nov 2010) <http://www.idkk.gov.tr/> 6. Marriott Global Source MGS Risk Management Strategy and Process (Viewed 1st Dec 2010) <http://extranet.marriott.com> 7. Lecture Notes

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