Electronic tool from Willis to measure hotel business risks
Measuring business risk is tough. For hotels, faced with multiple risks, the challenge is more daunting. Now, experts are at work to help them measure their risks fast.business Updated: Aug 12, 2009 23:21 IST
Measuring business risk is tough. For hotels, faced with multiple risks, the challenge is more daunting. Now, experts are at work to help them measure their risks fast.
Willis Ltd, the third largest insurance broker in the world that controls $ 35 billion (about Rs 1.68 lakh crore) in insurance premiums, is developing an electronic model that will help hotels to quickly analyse a wide range of risks — from terrorism and computer viruses to key executives leaving.
Speaking at a seminar on Enterprise Risk Management & Insurance for the Leisure and Hospitality industry organised by Willis Insurance Brokers, Laurie Fraser, Global Market Leisure Practice Leader, Willis Ltd (UK) said on Wedesday the model will be launched in the last quarter of 2009, with clients being given access through passwords.
“The electronic model will enable hotels to analyse all kinds of risks such as cyber risks, operational risk, human resources risk, supply chain and will even include terrorism risk,” Fraser said. “They can assess the financial damage that can happen due to a particular risk — for instance a top sales person quitting, a fire in the hotel, an injury to the guest or to an employee.”
The model would help chief financial officers decide where to spend capital for risk protection. “The electronic model will be launched in the last quarter of 2009 on the Willis website and clients will be given access through a password,” he said.
Illustrating the risk-linked business, Lance J Ewing, Vice-President, Risk Management, at Harrah's (which runs hotels and casinos) said, "We spend $ 50 million as claims each year. This claim amount is paid partly by us and partly through insurance. Last year, we had 140 auto claims, 14,000 general liability claims and 4,000 employee claims."