Business risks are considered as the uncertain activities that pose severe challenges to the continuity of a venture. They impend normal progress of business and earning profits. General risks may include theft, fire, and depreciation of the currency, unfavorable government regulations, low seasons, strategic, operational, and compliance risks among others. The strategic threats emanate when a venture does not implement the set guidelines as stipulated in the model or plan. The phenomenon makes the company to be less efficient and encounter struggles with time. Operational risks constitute the failure to perform daily activities, hence ruining the reputation of the institution. These uncertainties represent the internal operations that coagulate into strategic risks. The administration ought to make sure that the duties are executed as stipulated to avoid expansion of the risks into uncontrollable problems. The failure to comply with the specified guidelines of the governing councils may pose severe obstacles to the progress of industry.
In hospitality management under tourism industry, the general terms of operation are jot different from those of ordinary ventures. The business is faced with strategic, compliance, and operational risks. Hospitality management may constitute of international procedures that call for conformity with the local principles of different countries. Some regulations may be burdensome to address as they are unrealistic. Further, the universal exchange currency, the dollar, keeps on changing depending on the economic progress of the industry or the country. The phenomenon may lead to considerable losses in cases where the managers have not forecasted. Travel advisories have also showcased their potential threat to the venture. Due to the increasing events of terrorism, some countries have decided to advise their citizens against visiting some designated countries. The issue has continued to harm the hospitality department as fewer bookings are evident. Lastly, the administration has to incur the cost of training the staff to be acquainted with the knowledge of different languages. Failure to prepare the employees can lead to losses as the booking customers originate from different countries.
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