Commercial Insurance Essay Example | Topics and Well Written Essays - 1250 words

Commercial Insurance - Essay Example Dealing with the business’ risks will involve evaluating the existing risk factors and developing robust contingency plans on ways of dealing with the risks whenever they occur. Therefore, laying down a concrete plan for these risks will be the central theme of ensuring efficient management of the business risks. In addition, with the understanding that it will be impossible to plan for everything, the hotel’s risk management plan will provide for efficient ways of reacting whenever risks emerge. The plan to establish the hotel involves the designing and construction of the hotel premises. This means that I will require a professional design and building team, which will not only be tasked with developing a concrete design for the premises on which the hotel will be based, but also building the hotel based on my specifications, as well as those of the state planning department. Rather than embarking on the designing and construction processes on my own, for instance, by hiring a design and construction team, I will float a design and construction tender in the local newspaper and journal for a specified duration. This will primarily be in order to avoid the risk of poor construction due to lack of expertise, or high costs. Consequently, the appointment of the best design and building group will involve tendering, specifically open tendering method. This tendering approach will mark a massive step in risk avoidance (Edwards and Bowen 43). Essentially, risk avoidance encompasses taking steps to deter a hazard thereby ending particular exposure. Additionally, open tendering is the preferred method since it will increase competition thereby guaranteeing the highest value for money on the design and building project. Open tendering will also enhance risk avoidance by ensuring that bidders or respondents are willing to work at low costs while also increasing their likelihood of accepting increased responsibility and risk. This will enable the hotel avoi d a vast proportion of the risks associated with designing and construction, including fluctuating costs of materials and difficulties transporting construction material. Additionally, open bidding will ensure the realization of a superior quality product, especially through the incorporation of a quality matrix in the assessment procedure (Edwards and Bowen 64). Another significant way through which open tendering will ensure risk avoidance is by the enforceability of the design and building contract, which will evade rogue contractors. As soon as the hotel begins serving customers, I will ensure risk reduction by adopting the public order approach. This will ensure that the hotel’s risk of theft, insecurity and fire is significantly reduced. Risk reduction encompasses the implementation of effective measures to diminish the severity or frequency of the occurrence of losses. Consequently, risk reduction is also referred to as loss control (Edwards and Bowen 120). In the hote l, risk reduction will involve fire protection, for instance, through the installation of fire extinguishers and training the staff on fire fighting approaches. In addition, routine safety inspections will be a mainstay of the hotel’s risk reduction strategy, particularly since hotels are