Holiday Inn 2008 Annual Report Download - page 27

Download and view the complete annual report

Please find page 27 of the 2008 Holiday Inn annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

BUSINESS REVIEW
Business review 25
Managing risk
Process and framework
IHG has an established risk management process and framework
embedded in all regions. The long-term strategic goals are aligned
with the IHG core purpose Great Hotels Guests Love and include
these key elements:
• safety and security of guests, employees and other third parties;
• brand strength supported by operational excellence in risk
management at all hotels and corporate locations; and
• maintenance and promotion of the reputation of the Company.
Our approach has been to enable and support hotel owners,
staff and corporate functions to manage risk effectively. This
is accomplished by giving them a systematic approach and
framework to follow and by providing them with tools to do the job.
The Risk Management function aims to share specialist knowledge
and capability globally.
Safety and security in hotels
A strategic framework for hotel safety and security has been
designed for owned and managed hotels and is illustrated
opposite showing the identified groups of risks and describing
the management activities carried out to mitigate the risks.
The red wheel illustrates the groups of risks which IHG’s risk
managers around the world work on with IHG general managers
and their management teams in order to minimise the risks and
keep the hotels safe.
Over the years we have developed risk management strategies
to assess and treat individual types of risk. This has involved
developing policies, standards and guidelines, raising awareness
levels, training staff on the controls and systems which have been
developed for their use and reviewing and reporting upon progress
and continued risks. These management activities are represented
by the purple wheel.
Security risks, particularly the threat of terrorism, have increased.
In recent years, IHG has developed an increasingly sophisticated
response that is intelligence-led and risk-based. The security risk
environment is highly dynamic and needs to be managed both
centrally and locally in hotels. In common with all risk strategies,
there are three elements that must be developed and maintained:
physical and technical systems, people capabilities and processes
and procedures.
Hotel safety framework
Corporate risk management
The management activities shown above are being adapted and
applied to manage corporate risks. This initiative is led by the
Executive Committee, facilitated by the Risk Management function
and integrated with quarterly strategic reviews.
IHG’s Risk Management function has recently reviewed the way in
which corporate risk and the major risks to IHG are managed and
is seeking to develop a framework to improve risk management
capability further, represented diagrammatically below:
GROWTH
PROFIT
CONTINUITY
M
a
n
a
g
e
I
m
p
r
o
v
e
M
o
n
i
t
o
r
REVIEW
RISK
PROCESS
IDENTIFY &
PRIORITISE
RISK
REPORT ON
GOVERNANCE
AND CULTURE
QUANTIFY
RISKS
IMPLEMENT
AND TEST
DEVELOP
RESPONSE
PLAN AND
SOLUTIONS
RISK
GROUPS
SECURITY CRISIS &
INCIDENT
FIRE
PROTECTION
LEISURE
SAFETY
GUEST
SAFETY
FOOD
SAFETY
STAFF
SAFETY
RISK
MANAGEMENT
ACTIVITIES
RISK
PROFILE
POLICY &
STANDARDS
REVIEW
& REPORT
WAYS OF
WORKING
RISK
FINANCING
TRAINING
& COMMS
OPERATE
& CONTROL
Risk
management
activities
Risk groups