Risk Management For Historical Hotel: Hazards And Solutions

Introduction to Risk Management for Historical Hotel

Discuss about the Risk, Crisis And Disaster Management.

Risk Management is defined as the process through which the dangers and problems occurring in the process can be defined (Hull, 2012). In addition, the risks involved in the various processes of disasters relating to any of the issues concerned can be managed to taken under control by the use of the risk management issues (Hillson & Murray-Webster, 2017). The process of risk management can be of many forms regarding the fire and safety measures that is being stated in the hotel situated in the heart of Australia. The problems that the historical hotel is facing can be solved by using many of the measures that are introduced by the WHS Act developed by Safe Work Australia in the year 2011, also known as Model Laws to be implemented all over the premises of Australia.

The law states the various forms of safety and security measures that is to be implemented at all places that deals with customers and clients (Macdonald et al., 2012). However, according to the case study, the hotel that is being considered in the case study has breached the model laws set by the institution and therefore has faced a number of issues relating to the security of the customers and workers.

The law states the main motive is to provide apt amount of safety and security to the people associated and to protect and improve the conditions that the worker is being subjected to (Bong et al., 2015). Other than it, the model law also provides evidence for training and improvement which is completely absent in the hotel that is being considered.

 The law of NSW legislations also states that every chemical used in the products produced should be mentioned on the label of the commodity so that the users can have a fair share of idea about the effects that can be caused in the process (Quilter & McNamara, 2013). The chemical that has been used in the cleansing process that is causing a huge amount of irritation and side effects to the workers and even to the guests is nowhere to be assessed even on the label or the list so that the people using can get a fair idea of the same (Živkovi?, 2013). The usage of the unknown chemical in the case study provided causes a number of irritations to the skin and eyes of the users causing a number of problems including absents in the previous months. These are some of the problems that are caused by the overuse of chemicals and the lack of knowledge about the same (Kuhn et al., 2015).

Risk and Hazard Analysis for Historical Hotel

There are a number of hazards that are within the historical hotel situated in The Rocks that ranges from security issues to management issues and even to the problems relating to health and safety of the employees (Yang, Luo & Law, 2014). The first hazard that is present in the hotel is the location issue which is prone to robbery and other problems. The issue of uninformed guest welcoming to the rooms is another security threat that needs to be accessed within time frame. The management issues like the working of the lift and the training for the security of the guests and employees are some of the pivotal issues that needs to be catered (Kim, Lee & Ham, 2013). There is no appropriate information regarding the training of the medical team and the things and amenities that needs to be properly accessed for the better review and medical facilities provided to the client. The guests of the hotel are not trusting the medical team present due to their lack of qualification and presence of basic requirements for the conduction of the primary medical issues (Carmeli, Friedman & Tishler, 2013). Another problem that is there is the hotel is the lack of security that the guests have been facing since time. The lack of training given by the human resource department makes way for the various kinds of hazards that affects the guests of all forms. The lack of security issues have made the customers and the guests fall into the wrong places which has affected the reputation of the hotel for the longest time.

The risk associated with the hazards that the hotel is facing can be categorised into health, security and management issues that needs to be catered (Reference to Appendix 1). The risk associated with the location of the hotel along with the untimely entry of the guests can be categorized under the security issues that needs to be assessed (Pan, 2015). Every hotel should have a security map which should be followed under all circumstances. The management role should be made focal with the repairing of the lift and the other issues that require management interference. There is no concrete safety plan that needs to be present there all the time. The betterment of the safety plan is of prime importance to the fact. The medical facilities of the hotel should be made better including the inclusion of better trained practitioners and inclusion of a basic safety kit at the premises to cater to the primary health issues. The Health Safety Representative training that is one of the major requirements for the medical aid team should be made compulsory otherwise which the untrained faculty can conduct the wrong ways of treating even the minor problems associated with the health of the guests. Recruitment of the staff should be made more on the basis of the ability and the requirements of the hotel and should be made crucially to cater to every needs of the organization.

Security Issues in Historical Hotel

The problems and the risks associated with the hotel can be solved by inducing the management level control for the non-compliance with legislative issues for the hotel authorities. The management can induce strict measures related to security, health and HR issues for the better management of the organization as a whole (Caber & Albayrak, 2014). The security issues can be catered by inducing better administrative measures like installation of CCTV cameras at places that require major inspection. In addition, the HR procedures that require inspection and other means can also be done by taking proper means regarding the recruitment of employees and other ways. The health issues of the hotel employees and guests should be of topmost priority which means the better usage of products for all the purpose so that both the employees as well as the guests do not face any hassles and health risk. According to the WHS Act, the safety of the employees and the workers is of topmost priority which should be acted upon by the authorities of the organization. The management level should be able to assess the problems and make apt solutions for the same in terms of all measures like using proper products for the organization and fixing of the lift to assess the facilities of the guests (Chan & Lam, 2013). The management level control should be implemented for the desired outcomes by the management authorities and should be made available for the people working in the organization.

The risk control measures that can be applied for the hierarchy of controls for the better operation of the hotel which is under a number of risks associated with security, health and management related factors. Hierarchy of hazard control can be defined as the system that can be used in the industry to eliminate the risk of posing problems and risks associated with the same or to even reduce the problems. This is one of the standardized practises that is taught to the managers to reduce the risks at the workplace and make the management easier (Lees, 2012). There are five steps of this control hierarchy namely identification, analyse, evaluation, treatment and monitoring the risk are used to minimise the risk association in organization.

The following concept can be applied to the case study stated by identifying the risks in the historical hotel and then analysing the required protocols that are to be taken to minimise the different types of hazards that are associated. The evaluation of the risk associated with the various forms is one of the major ways in which the whole process can be processed and made sure that all the necessary factors regarding the working of the organization is done on a primary level. The treatment of the various kinds of hazards associated with the workplace especially the hotel that require enormous amount of solving techniques is to be done accordingly. At the end, monitoring is the primary key that should be done to make sure that such activities leading to the previously curtailed problems is not faced at any level.

Health and Management Issues in Historical Hotel

Security issues can be addressed by the installation of CCTV cameras and also the inspection of the nearby areas with intricacy. The health issues of the workers and the clients due to the over usage of chemical and the lack of knowledge because of the unknown chemical composition can be handled by abandoning the use and using the ingredients that are both pocket and skin friendly. The role of the HR should be analysed and evaluated which also includes the training and other developmental issues to the concerned authorities. A mere fire training summer session is not justified for the whole hotel business and there needs to be more alertness from the authority side. At last, the management issue regarding the fixture of the lift and other basic amenities should be done according to the plan done by the management staff for the better facility of the organization.

Summary of the Results of the Analysis:
Capital Costs	$0
Whole of Life Costs	$436,500
Present Value of Benefits	$376,138
Present Value of Costs	$367,424
Benefit Cost Ratio	1.02
Net Present Value	$8,714
	0	1	2	3	4
Year	2018	2019	2020	2021	2022
Discount factor (mid-year)	0.96225	0.89097	0.82497	0.76387	0.70728
Discount factor (start of year)	1.00000	0.92593	0.85734	0.79383	0.73503
Benefit 1	15000	15000	15000	15000	15000
Benefit 2	25650	25650	25650	25650	25650
Benefit 3	50000	50000	50000	50000	50000
Total Benefits (mid-year)	$90,650	$90,650	$90,650	$90,650	$90,650
Present Value of Benefits (mid-yr)	$87,228	$80,767	$74,784	$69,244	$64,115
Present Value of Benefits	$376,138
Cost 1	-$32,800	-$32,800	-$32,800	-$32,800	-$32,800
Cost 2	-$23,000	-$23,000	-$23,000	-$23,000	-$23,000
Cost 3	-$42,500	-$42,500	-$42,500	-$15,000	-$15,000
Total Costs (mid-year)	-$98,300	-$98,300	-$98,300	-$70,800	-$70,800
Capital Costs (at start of year)	$0	$0	$0	$0	$0
Total Costs	-$98,300	-$98,300	-$98,300	-$70,800	-$70,800
Total Capital Costs	$0
Total Whole of Life Costs	-$436,500
Present Value of Costs (mid-year)	-$94,589	-$87,583	-$81,095	-$54,082	-$50,076
Present Value of Costs (start year)	$0	$0	$0	$0	$0
Present Value of Costs (by year)	-$94,589	-$87,583	-$81,095	-$54,082	-$50,076
Present Value of Costs	-$367,424
Net Cash Flows	-$7,650	-$7,650	-$7,650	$19,850	$19,850
Net Present Value (by year)	-$7,361	-$6,816	-$6,311	$15,163	$14,040
Cumulative NPV	-$7,361	-$14,177	-$20,488	-$5,325	$8,714
Chart data only:
Year	0	1	2	3	4
Present Value of Benefits ($million)	$     0.087	$          0.081	$     0.075	$       0.069	$  0.064
Present Value of Costs ($million)	-$    0.095	-$         0.088	-$    0.081	-$       0.054	-$ 0.050
Cumulative Net Present Value ($million)	-$    0.007	-$         0.014	-$    0.020	-$       0.005	$  0.009

 

There can be a number of consequences that can be adhered if the hazards are not managed and the compliance are not met. Among the list of consequences, the first being the less number of guests that wished to check in the historical hotel area. The area in which the hotel is located is prone to robbery and other mal practises that makes the guests become worried about their staying at the hotel premises (Rittichainuwat, 2013). The liberty of the staff to welcome the guests without being registered at the register copy is one of the other major issues that the hotel is facing and should amend as possible. The issues related to the health of the staffs and the guests for the impact of the chemicals and their reason for absenteeism should be investigated in details and made sure that the health of the concerned is held at topmost priority.

 The case study provides a detailed analysis of the effects that the use of the unknown chemical has on the skin and eyes of the individuals who are in contact with it making the consequences far more fatal than normal ones. The issues related to the management and their problems like the fixing of the lift and other solving of problems is to be done on priority basis. If the following is not catered, then the guests who are paying to stay at the hotel with their money would not be able to make full utilisation of their money and would not recommend the hotel to their known ones (So et al., 2013). This will result in the reduction in the sales and thereby guest numbers which will affect the reputation of the historical hotel in the longer period. Though the hotel is known for delivering affordable stay for the guests, it should have the basic amenities that should attract the guests as well as provide them with the required amenities so that they can recommend it to their known ones. If the workplace hazards are not maintained and put into action with immediate effect, then the overall reputation of the hotel is at stake which means that less number of guests resulting in less profit and market value, nor desirable at any consequential level 

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