Types of risk
HRA recognises that Operational Risk may cause a luxury hotel chain of 10-12 hotels to lose more than 1.5 million over a 10 year period . It estimates that 16 million needs to be generated , in sales value, to recover such losses. This is equivalent to a 243-bedroom hotel achieving good occupancy with an average room rate of 180 to 250 pounds
Types of Risk
HRA categorises 6 types of risks in the hotel and leisure industry:
Operational –Internal Business Processes
Financial- Accounting risk
Forensic Risk- Identity Theft and Computer fraud
Strategic Risk- External Forces: competitors, suppliers, customers, agents, advisers
Compliance Risk-Internal AuditFraudsters strike when you least expect it by breaking the trust placed in them through the Learning Culture and the Performance Tools you spent years in developing.
HRA identifies that operational risks are preventable and often they are not, as the company trusts the people who are operationally involved and accountable for perfect service delivery. Frauds are easily discoverable if you know where to look and what to look for.
HRA findings conclude that most of the fraudsters survive. They know how to protect the proceeds of crime and mislead Senior Management Team. They often explain unethical activities by defining the extra effort they put in and describe the cost savings achieved. Some flee to countries where there are no appropriate extradition policies and where the CPS has no legal jurisdiction authority.
HRA undertakes project where CPS declines to prosecute fraudsters due to shortfall in Risk Auditing Practices ,Fraud Reporting Procedures and Anti Fraud Policies
Regulators, stakeholders and insurers are increasingly holding Directors and Senior Management Team personally liable for alleged internal control failures in the company's value chain.
The Chartered Accounting and Management bodies continue to foster clear ethical guideline and legal help line to protect professional integrity and promote the ethical principles.Fraud seminars are regularly held to guide financial and non financial managers on fraud reporting techniques
HRA encourages companies to promote Ethical Code of Conduct,Anti-Fraud Policies,Whistle Blowing Policies,PCAW and support those who disclose their findings according to PIDA,SOCA,MLR and protect them PFHA.
Although the proceeds from financial acts are recoverable from established legal principles and Acts like Fraud Act, Proceeds of Crime Act, Serious Organised Crime Act and Money Laundering Regulations, many companies have not adopted these principles and procedures
HRA believes that fraudsters who are not prosecuted ,or where the assets are not recovered,the probability of such frauds will continue to exist in the company under the nose of Directors and Senior Management Team.
HRA encourages companies to implement a formal and informal learning culture that will reduce the, DPMO,defects per million of opportunities in the core operating activities.
HRA designs a rational and ethical Risk Reporting Technique that suits your company by analysing and compiling past,present and potential risks.
If you believe your company is not a victim of any imperative loss through any risks, we will carry out a diagnostic check and compile an inclusive report.