Building Resilience – Risk Management and Business Continuity

The modern hospitality industry is full of risks, from daily operational hiccups to major crises. A manager’s role is not just to run the shift but to implement changes that prevent or reduce future undesirable outcomes. This proactive approach is central to strategic planning and growth.

The Foundation: Risk Policy and Assessment

A comprehensive risk management policy establishes a framework for managing risks and increases overall awareness across the organization. It should define roles and responsibilities to ensure the methodology is embedded in every part of the company.

As a manager, you are required to control risks and hazards in your workplace, which starts with a risk assessment. This process helps you identify sensible measures to control risks. For risks involving health and safety, this is often a legal requirement.

A risk assessment answers key questions, such as:

1. What are the risks or hazards? (e.g., manual handling or slips and trips).

2. Who might be harmed and how? (e.g., staff receiving injuries from heavy lifting).

3. What is already being done? (e.g., staff training or good housekeeping).

4. What further action is necessary? (e.g., improving shelving design or better kitchen housekeeping).

Prioritizing Threats with the Risk Register

To effectively handle risks, they must be quantified and prioritized. Tools like the Risk Matrix and Risk Register are essential for this.

The Risk Register is a document that logs risks and the actions taken to manage them. Using a Risk Matrix allows you to grade likelihood and impact, often on a 1–5 scale, resulting in a total risk score (e.g., out of 25).

Common High-Impact Risks in Hospitality (and Mitigation):

RiskLikelihood/Impact (Example)Risk ScoreMitigation Strategy
Staff AbsenceHigh (4/5) / Serious (4/5)16Cross-train teams; maintain a backup staff list.
Internet OutageFairly Likely (4/5) / High (4/5)16Use a 4G backup dongle or hotspot; revert to manual processes.
Cellar Cooler FailureLess Likely (2/5) / Serious (5/5)10Regular checks; keep engineer’s number handy; switch to bottled drinks immediately.
No Personal Licence HolderLower (2/5) / Very High (5/5)10Always rota a PLH; train backup team members.

Implementing Business Continuity Plans

Business continuity management builds resilience and provides a framework for effective response when potential impacts threaten the organization. Contingency planning is not just for major disasters; it covers smaller-scale issues like the loss of data, people, or suppliers.

When a critical system fails, such as an EPOS or till system, staff should immediately switch to using manual order pads and accept cash. For an internet outage, the shift supervisor should display “Cash Only” signs, and the manager should post an update on social media using mobile data. These plans should be clear and actionable, ensuring staff know who to contact and what to do immediately.

Empowering your team by encouraging them to speak up if something looks “dodgy” (e.g., a loose cable) is crucial to catching problems early.

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