Why risk management should be a priority in the hospitality industry
Feb 08, 2022
Why risk management should be a top priority in the hospitality industry
It’s a turbulent time for hospitality businesses. With customer expectations and safety guidelines from OSHA and the CDC constantly evolving, it can be hard to keep pace — especially when organizations lack the right technology.
Customer loyalty and operational efficiency decline when organizations fail to offer a safe and secure environment. Fortunately, risk management platforms have quickly risen to the challenge by helping hospitality managers navigate new risk management strategies for keeping patrons and employees healthy and safe.
What is risk management in hospitality?
Risks lurk around every corner in the hospitality industry — and if not handled properly, the consequences can damage your organization’s bottom line as well as its reputation. Here are just some of the risks we see in today’s hospitality industry:
- Safety risks are any hazards or environmental conditions that could lead to the physical injury of a patron or employee. For example, employees could strain themselves while lifting luggage or burn themselves while handling hot food. Guests could slip on an unmarked wet floor. An unsafe environment is costly and can open up insurance claims, complaints, and even lawsuits.
- Cybersecurity risks refer to any vulnerabilities created intentionally or unintentionally that could threaten the privacy of guest data. When customers stay at hotels or sign up for loyalty programs, they trust the organization to secure their personal information. But when you don’t prioritize protecting customers’ personal or payment information, you risk not only the security of their data but also your organization’s reputation. A security breach can be costly and devastating for both you and your customers.
- Environmental and other unexpected risks include incidents that could impact your physical environment. Natural disasters and other unforeseen circumstances pose a serious threat to business continuity and workplace safety. If you don’t have the right plans and tools in place, you’re left scrambling to react when bad weather strikes.
How a risk management platform can help your hospitality company
When it comes to health and safety, you can’t rely on spreadsheets or siloed systems to mitigate risks. Instead, you need digital risk management technology that’s accessible across multiple locations to evaluate and respond to the risks that threaten your people’s well-being.
With a risk management platform, you can:
1. Protect and secure data
Siloed systems and outdated technology can leave your customers’ personal and financial information at risk. With an advanced risk management platform, however, you can better secure incoming incident and customer data in a single repository. Flexible and centralized systems are necessary when you have multiple locations and mobile intake needs to happen on the spot. A comprehensive, consolidated approach to handling data makes it much easier to keep your organization’s data secure.
2. Create a safer environment.
To combat worker satisfaction issues, risk management technology can help create a safety-driven culture and a more secure environment for your people. A platform that uses artificial intelligence (AI) and predictive modeling can help you identify potential risks, create a plan to avoid them, and more quickly resolve claims. For example, storing data in a centralized, mobile-friendly dashboard can help you gain insights across locations and enable you to put safety trainings into practice. You can also prioritize risks based on the impact they’ll have on your business and determine the best response.
3. Maintain compliance.
Regulations are always in flux, but a risk management platform enables agility and helps you stay on top of any changes. And with a centralized solution, you can unlock real-time collaboration and communication so your employees stay up to date on best practices. This will reduce costly delays and help you avoid non-compliance fees.
Become an expert risk manager in the hospitality industry:
The safety and security of customers and employees should be the number one priority of every hospitality business. By investing in a mobile risk management platform, you can become an expert risk manager and put your people’s safety first. At Aclaimant, we provide the tools and technology you need to monitor and mitigate risk.
Learn more about how you can better manage hospitality risk with Aclaimant’s insight-driven workflow solution.