Factors that shape a hotel company's risk appetite. (January 2019)

• Record Type: Journal Article
• Authors: Zhang, Nathan; Paraskevas, Alexandros; Altinay, Levent
• Is Part Of: International journal of hospitality management. Volume 77(2019)
• Page Start: 217
• Page End: 225
• Publication Date: 2019-01
• Subjects: Determinants -- Factors -- Hotel company -- Risk -- Risk appetite -- Risk management; Hotel management -- Periodicals; Restaurant management -- Periodicals; Food service management -- Periodicals; Hôtels -- Gestion -- Périodiques; Restaurants -- Gestion -- Périodiques; Services alimentaires -- Gestion -- Périodiques; Food service management; Hotel management; Restaurant management; Periodicals; 647.94
• DOI: 10.1016/j.ijhm.2018.07.001
• Languages: English
• ISSNs: 0278-4319

Abstract

Highlights: This paper is the first study on risk appetite in hospitality. In-depth interviews were conducted with ten risk appetite experts and six-teen corporate executives of two international hotel groups. We identified two sets of factors ('primary' and 'secondary') that influence a hotel company's risk appetite. The factors can be used by managers in the hotel sector as a starting point to understand drivers and inhibitors of their companies' risk appetite while researchers can use them as a basis to develop descriptive or predictive models of a hotel company's risk appetite. Abstract: Despite a growing scholarly interest in risk management within the field of hospitality, risk appetite, which plays a key role in effective risk management, has not yet received wider attention. This paper contributes to our understanding of risk appetite by exploring the factors that influence risk appetite in a hotel company context. Through in-depth interviewing with risk appetite experts and corporate-level hotel executives, we identified two sets of factors ('primary' and 'secondary') that influence a hotel company's risk appetite. Although, at corporate level, these factors do not differ from other industry contexts, they can be used by managers in the hotel sector as a starting point to understand drivers and inhibitors of their companies' risk appetite while researchers can use them as a basis to develop descriptive or predictive models of a hotel company's risk appetite.