OPERATIONAL RISK

MYLENE C DELA CRUZ RND, LPT, PH.D.

OPERATIONAL RISK
HOTEL PROVIDE GREAT IMPORTANT SERVICES TO TRAVELRS. THERE
ARE MANY FACTORS WHICH DIRECTLY AFFECTS THE INDUSTRY. THE
INDUSTRY IS REALLY TOO SUSCEPTIBLE TO SEVERAL FACTORS FROM
CHANGING WEATHER TO CHANGING GOVERNMENTS. APART
FROM IT, TECHNOLOGICAL AND SOCIAL TRENDS TOO CAN IMPACT
IT DEEPLY. TECHNOLOGICAL INNOVATION, TERRORISM, POLITICAL
INSTABILITY, RISING CONSUMER DEMAND AND SIMILAR OTHER
FACTORS HAVE INFLUENCED IT GLOBALLY IN VARYING WAYS.
POLITICAL RISK

•  Factors of a political nature which may present risks or

opportunities. The industry has the backbone of the Government
and it is the govt support that helps to sustain the competitive
world. Charge great amount of tax on luxury. The state has a huge
decision which will support the growth of the industry.
ECONOMIC RISK

• Economic factors both inside the company and external to the

Company can present big risks and opportunities. External influences
could be for example, a change in interest , inflation, taxation
changes or exchange rates could impact borrowing and spending and
any financial impact is likely to be felt in spending and pricing which
will apply to all travelers. Travelers bring huge amount of money
accompanied with huge expectations.
SOCIAL RISK

• Social factors consider stakeholder preferences, communication

preferences, cultural differences, ethical standards, perception of
value and quality where risks and opportunities can be presented by
all of these. For example a customer who perceives a product as
being higher quality will pay more for it even if it costs no more to
produce, but may not purchase at all if the product breaches their
ethical standards.
TECHNOLOGICAL RISK

Factors relating to technology are things like process automation,

product or service development, supplier, competitor and customer
technology, industry innovation. The software used by the industry
helps meet all the needs of the staff and customers. It helps reduce
the work effort and enhances the result. But beyond all that, the risk
of data breaches particularly on customers personal information is at
high risk.
LEGAL RISK

•  Legal
factors include both those imposed by the governance of
the jurisdictions you operate in and the internal governance
your company has established. Not understanding the legal
requirements of the jurisdictions you operate in is certainly a
risk, but changes to requirements can present risks and
opportunities. Factors may include safety and health laws.
ENVIRONMENTAL RISK

Factors from the operational environment or the market which

present risks and opportunities. Understanding the geographic
locations, climates, their populations, infrastructure constraints,
sustainability, ethical sourcing, etc. Natural or man-made
disasters greatly affect the industry. Measures to reduce the
impact need to be taken into consideration.
•