Great Hotels Guests Love
Annual review and summary financial statement 2009

Managing risk in hotels

Process and framework

IHG has an established risk management process and framework embedded in owned and managed hotels in all regions. The long-term strategic goals are aligned with the IHG core purpose Great Hotels Guests Love and include three key elements:

  • safety and security of guests, employees and other third parties;
  • brand strength supported by operational excellence in risk management at all hotels and corporate locations; and
  • maintenance and promotion of the reputation of the Company.

Our approach has been to enable and support hotel owners, staff and corporate functions to manage risk effectively. This is accomplished by giving them a systematic approach and framework to follow and by providing them with tools to do the job.

The Global Risk Management function aims to share specialist knowledge and capability globally whilst being aligned to the operational structure of the business to ensure local circumstances are understood and respected and greater engagement of our people is achieved.

Safety and security risks in hotels

A strategic framework for hotel safety and security has been designed for owned and managed hotels and is illustrated below, showing the identified groups of risks and describing the management activities carried out to mitigate those risks.


Hotel safety framework

The red wheel illustrates the groups of risks identified and actively managed by IHG’s risk managers around the world. They work with hotels and their management teams in order to minimise such risks and keep hotels safe and secure.

As a result of our holistic approach to risk, we are able to maintain and develop risk management strategies to assess and control individual types of risk. This has involved developing policies, standards and guidelines, raising awareness levels, training staff on controls and systems to be used to manage and mitigate risk and reviewing and reporting upon progress and emerging risk. These management activities are represented by the right hand wheel.

Mitigating hotel safety and security risks

Risks are identified at hotel level through various means including intelligence gathering, quality audits, risk management assessments and internal audits. They are also identified as a result of incidents, customer audits and self-assessment. Hotel management discuss issues at monthly safety meetings and action plans are developed. Risks are prioritised, assigned and improvement actions are identified, progressed and monitored. Action plans are reviewed at appropriate levels in the organisation for issues that need to be escalated either to drive action or to develop common solutions.

IHG believes it has a mature and capable systemic and systematic approach to managing hotel safety and security which both reduces the likelihood and impact of events. The embedded culture within IHG makes hotels and the corporation more resilient to unexpected or unidentifiable risks.