Holiday Inn 2010 Annual Report Download - page 35

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Business review 33
OVERVIEW BUSINESS REVIEW
THE BOARD,
SENIOR MANAGEMENT AND
THEIR RESPONSIBILITIES
GROUP FINANCIAL
STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS USEFUL INFORMATION
Managing risk in hotels
Process and framework
IHG has an established risk management process and framework embedded in owned and managed hotels in all regions. These are also
made available to our franchised hotels. The long-term strategic goals are aligned with the IHG core purpose Great Hotels Guests Love and
include three 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 IHG’s reputation.
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 whilst being aligned to the operational structure
of the business to ensure local circumstances are understood and respected and greater engagement of our people is achieved.
Safety and security risks in hotels
A strategic framework for hotel safety and security has been designed for owned and managed hotels and is illustrated below, showing the
identified groups of risks and describing the management activities carried out to mitigate those risks.
Mitigating hotel safety and security risks
Risks are identified at the hotel level through various means including intelligence gathering, quality audits, risk management assessments
and internal audits. They are also identified as a result of guest satisfaction surveys, incidents, customer audits and self-assessment.
IHG hotel management discuss issues at monthly safety meetings and action plans are developed. Risks are prioritised, assigned and
improvement actions are identified, progressed and monitored. Action plans are reviewed at appropriate levels in the organisation for
issues that need to be escalated either to drive action or to develop common solutions.
IHG believes it has a mature and capable systemic and systematic approach to managing hotel safety and security risk which reduces both
the likelihood and impact of events. The embedded culture within IHG makes hotels and the corporation more resilient to unexpected or
unidentifiable risks.
Hotel safety framework
The Safe Hotel wheel illustrates the groups of
hotel risks identified and actively managed by
IHG’s risk managers around the world. They work
with hotels and their management teams in order
to minimise such risks and keep hotels safe
and secure.
As a result of our holistic approach to risk, we are
able to maintain and develop risk management
strategies to assess and control individual types
of risk. This has involved developing policies,
standards and guidelines, raising awareness
levels, training staff on controls and systems to be
used to manage and mitigate risk and reviewing
and reporting upon progress and emerging risk.
These management activities are represented by
the Manage Risk wheel.
SAFE
HOTEL
SECURITY CRISIS &
INCIDENT
FIRE
SAFETY
LEISURE
SAFETY
GUEST
SAFETY
FOOD
SAFETY
STAFF
SAFETY
MANAGE
RISK
RISK
PROFILE
POLICY &
STANDARDS
REVIEW
& REPORT
WAYS OF
WORKING
RISK
FINANCING
TRAINING
& COMMS
OPERATE
& CONTROL