Project risk assessment and management: Starting Fine Dinning service in Hyatt Hotel

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Introduction

Risk assessment planning provides a scope to the organisation to identify the exiting risk and develop suitable strategy for mitigating the risk so that it is possible to complete the project proficiently (Chen, 2018). The main aim of the project is to provide Fine Dining facilities to the customers where the staff members and managers are well educated and efficient to deliver high quality service to the customers in the Hyatt Hotel.The study focuses on identifying the risks during the project and its probability so that the impacts of the risks can be addressed, and the project managers can mitigate the existing risks strategically.

Project pre-completion and post-completion risk

Table 1: Risk identification

Project pre-completion risks	Lack of finance for investment Internal conflicts Lack of appropriate timing Poor knowledge about the customer’s needs and preferences Construction of interior environment Implementation of technology and selection of the process Poor communication Lack of cooperation Lack of management of human resource Inefficient staff
Project post-completion risks	Changing preferences of the customers Inefficient supply chain Lack ofmanagement of logistics in the hotel Poor service quality Lack of market demand High cost of the service Lackof scope for expansion

Major project constraints

In order to develop the strategic planning to complete the project, there are several constraints in the project for which the staff members and the project managers may face difficulties to implement their strategic planning for completing the project successfully and these constraints need to be addressed through risk assessment (Kerzner, 2017). The major constraint to meet the aim of the hotel is lack of resources including financial and human resources which can raise problems in completing the project strategically. In this case, it is necessary for the managers to reallocate the organisational resources innovatively which will be helpful for designing the service so that the customer’s satisfaction can be maximised well. Lack of financial resources is one of the major constraint for which the managers sometimes fail to hire new efficient and experienced staff at the hotel for delivering quality service through Fine Dining strategy as well as due to lack of resources, it would be difficult for the managers to manage the ambience and interior decorator of the hotel where it is necessary for the managers to provide neat and clean environment, attractive design and quality service to the customers to fulfil the project aim. In this regard, lack of management in the human resources is another constraint for which the staff members and others cannot manage their service quality due to poor knowledge and understanding about the customer’s preferences, lack of interaction and inefficiency of the staff members, which may deteriorate the chance of completing the project strategically.

In addition to the above constraints, quality, cost, time, lack of scope, risk in managing workplace are the major constraint in managing the project efficiently (Keeganand Meijerink, 2019). In this regard, another main constraint of completing the project successfully is changing preferences of the customers and lack of understanding of the employees and the staff members about the actual needs and requirements of the customers. It would be difficult for the staff and managers to acknowledge the actual needs and preferences of the customers as it is necessary to have clear understanding about customer’s choices and preferences so that the managers can serve better Fine Dinning service to the customers. Without having adequate knowledge about the customer’s preferences, it would also be hard for the manager to meet the high-quality standard of the services in Hyatt Hotel. Time is another constraint which also needs to be managed through developing proper Gantt chart, otherwise it is difficult for the managers and the staff members to complete the project within time. Risk of quality management, and internal conflicts are other constraint which raise difficulties to manage the organisational environment as well as creates problems in developing effective teamwork for partnership working as these are necessary in Hyatt Hotel to serve the Fine Dining facilities cooperatively and collaboratively. Through developing effective strategic planning and resource allocation, it is necessary to diversify the risk and manage time to complete the service design efficiently for opening the service of Fine Dining  in the Hyatt Hotel so that the managers can promote the service properly and strengthen their customer base successfully in long run.

Risk assessment

Table 2: Risk register

Ref/ID	Description of risks	Risk Likelihood	Impacts of the risk	Contingency plan	Trigger	Owner
1	Lack of finance for investment	High	Poor projection and design	Reallocation of resources	Poor financing and lack of resources	Project Sponsor
2	Internal conflicts	Moderate	Lack of partnership working	Developing cooperative working practice	mismanagement	Project manager
3	Lack of appropriate timing	Low	Poor quality	Time management	Lack of time management skill	Project leader
4	Poor knowledge about the customer’s needs and preferences	Moderate	Lack of understanding about the customers	Conducting market research	Lack of market research	Project leader
5	Construction of interior environment	Low	Risk in project deliverables	Reallocating resources	Poor financing	Project manager
6	Implementation of technology and selection of the process	Moderate	Poor quality	Investment for technological up-gradation	Poor financing	Project manager
7	Poor communication	Low	Lack of sharing skill and experience	Enhancing interaction	Inefficiency of the staff	Project manager
8	Lack of cooperation	Low	Mismanagement during serving the customers	Developing partnership working practice	Inefficiency of the staff	Project manager
9	Lack of management of human resource	Moderate	Lack of management in the hotel	Developing human resource management strategy	Poor strategy	Project manager
10	Inefficient staff	Low	Low quality of service	Providing training	Lack of training	Project leader
11	Changing preferences of the customers	Moderate	Poor customers service	Conducting more research and customer’s feedback management	Lack of market research	Project manager
12	Inefficient supply chain	Low	Poor customers service	Developing strategic planning	Poor management	Project leader
13	Lack of management of logistics in the hotel	Low	High waiting time	Developing strategic planning	Poor knowledge	Project leader
14	Poor service quality	Low	Customer dissatisfaction	Improving efficiency	Inefficiency	Project manager
15	Lack of market demand	Moderate	Low sale and profit margin through the project	Developing strategy to retain customers	Changing customer’s needs	Project manager
16	High cost of the service	Moderate	Losing customers	Cost minimisation strategy	mismanagement	Project 10manager
17	Lack of scope for expansion	Moderate	Poor market share	Grabbing market opportunities through store management and efficient customer service	Poor strategic planning	Project leader

Table 3: Risk prioritisation

Probability	High	Implementation of technology and selection of the process	Lack of finance for investment	Internal conflicts Poor communication
	Medium	Construction of interior environment High cost of the service	Lack of management of human resource	Lack of management of human resource Lack of scope for expansion
	Low	Lack of appropriate timing Inefficient staff Lack of management of logistics in the hotel	Changing preferences of the customers Inefficient supply chain Poor service quality	Lack of cooperation Poor knowledge about the customer’s needs and preferences Lack of market demand
		Low	Medium	High
	Impacts

Risk management strategy

In order to mitigate the above-mentioned risks, it is necessary for the project manager to develop effective strategic planning (Harris, 2017). First of all, it is necessary to reallocate organisational resources and provide adequate finance so that the project sponsor can handle the project of opening the Fine Dining facility in Hyatt. Apart from that, the investment for interior decorator is also necessary for the project sponsor so that there is adequate finance for developing attractive internal environment which helps to retain he customers in near future after the successful completion of the project. In addition to these, proper management of the project managers needs to be improved so that the manager can develop suitable workplace for the employees and other staff members where they can work collaboratively. Lack of cooperation is one of the major issues which have direct impacts on the quality of the service in the hotel and in order to mitigate this risk, the managers need to enhance cooperation and provide rewards for partnership working practices. Arranging general meeting as well as providing training and development program are also necessary for the project managers so that the efficiency of the staff members can be improved. This in turn helps the employees and staff at the hotel to understand their individual’s job role as well as group aim to serve the customers in a better way. Another issue of lack of quality and in this regard, the project managers and leaders need to improve logistics and operations for utilising fresh raw materials and provide quality food and beverages to the customers that provides an opportunity to the hotel manager to satisfy the customers and retain trustworthy consumers for long run (Cagliano, Grimaldi and Rafele, 2015).

In addition to these, lack of knowledge about customer’s needs and preferences is one of the major post completion risk of the project where it would not be possible for the staff members to understand the actual choice of the customers and in this regard, the managers should incorporate training program and conduct in depth study about the healthy life style trend and preferences and food choice of the customers so that the staff can serve the customers as per their requirements. Poor communication and internal conflicts are on the pre-completion project risks, where the managers need to implement Information and Communication Technology (ICT) as well as use telephonic conversation for improving communication so that all the members can collaborate with each other and share their experience to improve their quality of service of Fine Dining. The managers also requires to improve efficiency of the staff so that they can build strong relationship, trust and loyalty among the customers through presentation of quality food, managing customers service and offering attractive interior decoration in the hotel so that it is possible to minimise the above mentioned risk of the project and complete the project successfully by serving more customers with the Fine Dining service in Hyatt hotel.

Table 4: Risk management plan

Risk identification	Risk response plan
Lack of finance for investment	Reallocation of resources
Internal conflicts	Managing the employees and creating values for them
Lack of appropriate timing	Time management
Poor knowledge about the customer’s needs and preferences	Market research and providing training programk
Construction of interior environment	Developing organisational culture
Implementation of technology and selection of the process	Investment on latest technology
Poor communication	implement Information and Communication Technology (ICT)
Lack of cooperation	Partnership working practice
Lack of management of human resource	Managing team members
Inefficient staff	improve efficiency of the staff
Changing preferences of the customers	Conducting market research
Inefficient supply chain	Developing efficient supply chain
Lack of management of logistics in the hotel	Logistics management through providing training
Poor service quality	Improving customer service
Lack of market demand	Predicting the future market trend
High cost of the service	Minimising cost of operations
Lack of scope for expansion	Grabbing opportunities in near future through expansion

Conclusion

It can be concluded that, the above-mentioned risk assessment is helpful to identify the existing risks of the project of Fine Dini in Hyatt hotel and the risks are lack of communication, poor quality, high cost and low finance, inefficiency of the staff and internalconflict. It is necessary for the project manager to handle the team members, provide training and implement technology as well as invest for interior decoration and improving the service quality so that the project can be complete successfully within effective time.

Reference List

Cagliano, A.C., Grimaldi, S. and Rafele, C., 2015. Choosing project risk management techniques. A theoretical framework. Journal of Risk Research, 18(2), pp.232-248.

Chen, B.S.Y., 2018. What makes restaurants successful? Hospitality Insights, 2(1), pp.10-12.

Harris, E., 2017. Strategic project risk appraisal and management. London: Routledge.

Keegan, A.E. and Meijerink, J., 2019. Conceptualizing human resource management in the gig economy: Toward a platform ecosystem perspective. Journal of Managerial Psychology.

Kerzner, H., 2017. Project management: a systems approach to planning, scheduling, and controlling. New York: John Wiley & Sons.