RISK in Focus


Q2 2022

RISK in Focus | Hotels  |  Q2 2022

RISK in Focus is an overview to show recent risks in the workplace, on the jobsite and throughout the world.

A comprehensive review of hazards that contribute to the risks are spelled out to help you learn and avoid these hazards for yourself and your company.


This edition covers:

+ Controllable Risks
+ Noncontrollable Risks

Many of the risks related to hotel operations flow from general staffing issues. While most properties are nearly fully staffed at this time, “fully staffed” represents a lower, new normal, with smaller housekeeping teams and even more multitasking by all staff members than they did before.

Hotel risks can be analyzed within two admittedly subjective categories: controllable and noncontrollable. As we’ll see, most of them are, in fact, controllable.

Controllable risks are those that lead to events that a hotel property owner can anticipate and try to prevent. The risk management strategy for controllable risks is a combination of prevention and recovery – trying to prevent the incident from happening, but if the worst occurs, taking reactive steps and employing claims management strategies to recover quickly from the impact.

In contrast, hotel property owners and operators might not be able to prevent an event stemming from a noncontrollable risk, but they can plan ahead to mitigate its impact and then to act quickly in the aftermath, taking reactive steps and employing localized claims management best practices. Thus, the risk management strategy for noncontrollable risks is characterized as minimization and recovery.

In both scenarios, ideal planning, response and claims management activity can protect the owner’s bottom line by limiting costs and getting operations back online sooner.