Risk Profile for a Casino Hotel Essay Example | Topics and Well Written Essays - 500 words

Risk Profile for a Casino Hotel - Essay Example In order to lessen their effect one has to understand the various risks that business is exposed to (Crouchy M). Basic step to embark upon this issue is to make an inventory of all possible reasons that are directly or indirectly influencing the performance of the business and then try to mitigate them. This essay mainly concentrates on a casino hotel; various risks involved with it and the ways adopted by management to overcome these issues. 1) Structural Risk: It includes risk associated with the firm itself. The security issue is one of the major parts of it. Guests must be secured enough from any sort of criminal activities inside the hotel. A single anti-peace incident may fall down its market. To overcome it to a great extent, the casino has its own security employees. They take care of any such violence on the premises and also special weapon checking facility has been implemented. Next comes risk linked with cheating and theft. As it’s related to gambling games so, cheating is obvious. Management needs to observe closely whether any of their customer or hotel itself is getting cheated or not. 2) Growth Risk: Risks arising from the expected future performance is related to growth risk. It’s not a monopolistic market rather, there is strong competition and hotel authority must struggle for its existence. Management provides well-structured perks and benefits to their members in order to retain them and also very often to the others to attract more customer. Other than this, arrangements for special programs during festive days are taken so that, in the market, it is more highlighted. 3) External Sensitivity Risk: There are some cases like an increase in government taxes, political revolution or increase in the foreign exchange rate which directly impacts on the business. Though management doesn’t have straight access to solve them but maintaining a good relationship with customers as well as political party sometimes gives a good return.