Corporate Responsibility Report
Manage risk and safe hotels
Being a responsible business is a key part of our strategy for high-quality growth. An essential part of being a responsible business at IHG is managing risks and delivering safe hotels. These two programmes intersect in the Manage Risk and Safe Hotel Framework as shown:
Our strategic framework identifies key groups of operational risks in the Safe Hotel cog, and sets out mitigation activities in the Manage Risk cog. The framework is designed to use risk assessment as a basis for making sure we take the right actions and make our mitigation strategies part of our day-to-day business. The Manage Risk activities are applicable to all strategic, tactical and operational risks.
Managing current, medium and long-term risks affecting a wide range of stakeholders is fundamental to our vision to be one of the world’s great companies. We need to safeguard our assets, and to champion and protect the trusted reputation of IHG and our brands.
We are continually evolving our risk management system in order to respond to a changing, competitive environment and stakeholder needs. The key features of IHG's risk management system are:
- embedded risk management processes to consistently identify and manage key risks across the business
- a holistic approach to risk assessment applied through Strategic, Tactical, and Operational risk perspectives
- risk strategies, controls and outcomes that support the business and reduce unnecessary risk exposure
- a proactive risk and crisis management culture through leadership and training.
Risk management at IHG is led by the Board, delivered through the Executive Committee and supported by our Head of Global Risk Management. Further details on IHG’s risk management system, activities and key risk factors can be found in the Risk Management section on pages 34-37 of the Annual Report and Financial Statements 2013 PDF (6.83MB).
Making sure our hotels are safe and secure is vitally important to us as well as to our guests, staff and other stakeholders. IHG's commitment to safety and security is reflected in our Global Brand Safety Standards. We measure and manage compliance with these standards through quality inspections in all IHG hotels.
Beyond compliance, IHG's approach has been to enable and support its hotel owners, General Managers and employees to manage risk effectively. Our Risk Management team has created a comprehensive suite of policies, standards, web-based toolkits and training materials aligned to our Manage Risk and Safe Hotel Framework, which can be accessed by all hotels. The materials include risk management, safety and security policies and procedures, checklists, templates, posters, videos, e-learning and access to face-to-face training, which underpins our risk management framework. The information is held on our Risk Management pages on Merlin, our intranet site, and continues to be one of the most visited sites across the Group.
The team supports our employees and hotels with its expertise and by helping to oversee the implementation of our risk management framework. The specialist services they offer include safety and security risk assessments, comprehensive site specific threat and vulnerability assessments, crisis management and business continuity planning.
Our proactive, hands-on approach to managing risks, including safety and security, helps to protect and enhance our reputation in the eyes of our stakeholders and enables us to comply with relevant legislation.