Risk Assessment Structure For Mehfil Indian Restaurant

Establishing the Context

The word ‘risk’ has so many definitions depending on the context in which the term is used. In our context, risk can be regarded as any personal and emotional assessment of the likelihood of a potential financial loss that is usually presented by a particular situation. It can also mean future uncertainties about the possibility of deviation from the actual and expected outcomes (Higgins, 2012 p.73).

Various elements are subjected to risks, and the degree of subjection varies from element to element. For instance, life is submitted to the risk of death; buildings are subjected to various risks such as theft/robbery, fire among others. It is important to note that depending on the element of interest; there exist various types of risks that a component can be subjected to.

Risk management is broad in scope, and its definition is contextual (Rios &Insua, 2012 p.321). For this particular case, however, risk management is a term that is often used to refer to a systematic way of establishing a specific context usually developed through an in-depth analysis, evaluation, monitoring, and communication of risk that are associated with an element of interest (Bryan, 2010 p.978). Risk management is often aimed at minimizing the chances of possible losses and maximizing chances of opportunities if the risk does or does not occur. Scholars argue that risk management is more of identifying the available opportunities and avoiding the potential mitigating losses as much as possible (Toda, Yonemoto, Fujita, Shimahara, Sato, Nakatani, Kobayashi, 2012 p.132).

It is always considered to be of great importance that any form of organization implements a risk management process/plan to reap from its numerous advantages and to avoid possible losses. For a hospitality business such as Mehfil Indian restaurant, implementation of a risk management process is very vital. Below are some of the reasons why any hospitality business should make it a priority that they implement a risk management process;

Risk management process helps a company identify risks. It is always considered extremely important that a business identifies all its possible and potential risks. The identification of these reasonable and potential risks is deemed to be the first yet most crucial step towards avoiding these risks (Gunn, Newell, Haas, Marsden, Freeman, 2013 p.56). Knowing and having an understanding of the potential uncertainty regarding the amount and degree of damage that they can cause to business makes it possible for managers and other risk management teams in the market be on toes and thus formulate plans for addressing these risks. Therefore risk management is very fundamental for hospitality business depending on the nature of the environment they do operate in. It is imperative that they are well aware of what are the risks likely to happen (Ashley, Armitage, Neary, Hollingsworth, 2010 p.64).

Identification of Risks

Risk management helps in improving companies and business brand. When a company or a business is proactive and creates a meaningful and logical risk management plan, this usually acts as a recovery/comeback plan since it sends a positive message to the general public about a business and its overall operations (Luhmann, 2017 p.34). Employees and relevant stakeholders develop that inner pride and feeling that they are working in a very responsible company. Customers, on the other hand, develop the feeling that doing business and being associated with this particular business is proactive and extremely professional (Lintner, 2015 p. 131).

1. For a hospitality business, this is beyond that; it shows to the general public that indeed the company is extremely reputable and holds itself at very high standards of operations.

Through risk management planning and process plays a very crucial role in protecting a company’s resources. For hospitality business or any other business for that matter, a risk management plan not only helps in the identification of the potential risks, it also provides a platform for the business to prioritize those risks. It provides a mechanism to the business for planning for these risks and responding to them accordingly when need be. Through these plans, a business saves a lot regarding money, time and also physical resources (Goodwin & Wright, 2014 p.56).

Generally from the above-discussed reasons, then it is clear that hospitality business should implement risk management process since it is essential and plays a very significant role in the business wellbeing. The hospitality industry requires that business is fully insured because the possible risks are numerous and when they happen to occur, or at least one of the does, then they can bring the business down. Through risk management process, specific insurance covers can be suggested to remedy the possibility of future damage (Aven&Zio, 2014).

Application of the risk management process is often essential, and the means and way in which a risk management process is applied is very crucial and has a lot of weight as far as the risks are being taken care of. There exist various means of using this process, but there is also a standard means by which this process can be fully applied (Modarres, Kaminskiy, Krivtsov, 2016 p.89).

a). A risk ranking system

Risk ranking system referrers to “how” risk will be assessed. It is always known that threats have to be evaluated to determine them and the possibility of them occurring; the actual process that answers the question ‘how’ is what is regarded as a risk ranking system. For a risk ranking system, various risk ranking tools are involved. The system helps in considering some factors affecting the risks faced by a business. For our case, we are looking at Mehfil Indian Restaurant. Some of the factors that influence the likelihood of the chance to be met by Melvil Indian Restaurant are outlined below; event likelihood, time to impact, financial severity, injury severity, and reputational impact severity. These tools are clearly explained below;

Analysis of the Identified Risks

i). Event likelihood- This refers to the probability with which the projected risk will occur, it is often measured in percentage. A high rate of up to 20% shows that there is no doubt that the threat will finally happen; it’s just a matter of time. A small percentage of as low as 2-3% shows that the likelihood of occurrence is minimal; the risk might or might not occur. For Mehfil Indian analysis, the event likelihood is low; it ranges from about 0.8%-1.5%. This implies that the likelihood of occurrence is very minimal (Haimes, 2015 p.78).

ii). Time of impact- This refers to the range in time with which the event (for this case the risk) is likely to happen. There has not been a standard measure of the time of impact that has been developed since different businesses have different times of operation. For Mehfil Indian restaurant, the time of impact is the time that the restaurant will be open and this would be between 5pm-10.30pm. It is vital that the time of impact occurs only in the bracket of operation time for the business.

iii). Financial severity-As the name suggests, economic severity refers to the financial damage and loss that is likely to be suffered in the case of an occurrence.

iv). Injury severity-This refers to the likelihood of injuries that are going to be faced and occur to the people both within and without the organization (Haimes, 2015 p.128). For instance, with Mehfil Indian restaurant some workers work in that restaurant, about ten of them, they’re also customers who might be in the restaurant building during the occurrence time, thus getting injured.

v). Reputation impact severity-This refers to the final reputation that the general public will have after a particular risk has occurred and it happened to affect the business operations ultimately. The public will often regard to that specific business as irresponsible and does not care about the welfare of its customers and also the staff (Tsiatis, 2015 p.20). With Mehfil business, for instance, it is a hospitality business, reputation is very crucial and it must be protected at all costs (Haimes, 2015 p.238). Reputation impact severity can, therefore, be defined regarding the level of implication a risk will bring to the reputation of a particular business operation.

The risk analysis form refers to the entire form used in measuring the risk within the organization (Parnell, Smith, Moxley, 2010 p.89). This is a form including the legislative requirement that is needed by the organization. It comprises those obligations organization is required by the law or any other appropriate legislative body (Efron, & Morris 2012 p.130). In our case, the MEHFIL INDIAN RESTAURANT needs to conform to the laws and regulations. This legislation is designed to ensure all the relevant workers in the restaurant are keenly handled. It considers the things which are anticipated in the restaurant not forgetting providing health workplace. Risk analysis form will try to configure what it should be done in case of any hazard (Pratt, 2013 p. 317). The way takes into account the people in the restaurant, the entire premises of the restaurant, the plants used in the restaurants and also the procedures used by the workers when working. Through hazard administration arranging and process assumes an exceptionally significant job in securing an organization’s assets. For cordiality business or some other business so far as that is concerned, a hazard administration plan not just aides in the ID of the potential dangers, it additionally gives a stage to the business to organize those dangers. It gives an instrument to the business for anticipating these dangers and reacting to them appropriately when require be. Through these plans, a business spares a considerable measure with respect to cash, time and furthermore physical assets.

Evaluation of Risks

When preparing the risk analysis form, one needs to take into consideration the apt measures with the relevant solution (Parnell, Smith, Moxley, 2010 p.189). The compensation for the hazard caused by specific activity needs to be included in the form. Matching each risk with compensation will ensure a safe workplace. One will be able to get compensated when there is a tragedy within the restaurant. To design a good form then the person involved in the organization ought to follow the following steps;

•    Identifying the specific hazard that is anticipated in the restaurant.
•    Deciding on the person who might get harmed. That is determining each hazard to the particular department in the restaurant.
•    Evaluating the risk expected in the restaurant and then coming up with apt implementation mechanisms.
•    Recording the exact findings of the risk and then deciding on the appropriate precautions.
•    Reviewing the overall analysis and designing the update were necessary in the restaurant

The table will identify the risks incurred in the restaurant. It will indicate whether the risk is available by using (Yes) or if the risk is not available by denoting (No)

The table indicates the corrective measures for the identified risk in the restaurant. It describes the strategies used in tackling the incurred risk.

Conclusion

The following recommendations can be made to the management of MEHFIL INDIAN RESTAURANT;

Mehfil Indian Restaurant should look at its lighting system and improve it, the lighting system -should be vivid (Peltier, 2010 p.41).

The ventilation system should be improved; there should be one additional air conditioner in the restaurant apart from the one already existing

The hospitality industry is delicate, and risk management should be taken into consideration.

Therefore, based on the nature of the industry within which MEHFIL INDIAN RESTAURANT operates in, it is necessary that appropriate actions need to be used so that the risk management system and structure work in order.

References

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