ASIAN HOTELS AND PROPERTIES PLC AnnuAl RepoRt 2012/13

More documents

Recommendations

Info

isk managementPASSIONASIAN HOTELS AND PROPERTIES PLCAnnual Report 2012 /1330Asian Hotels and Properties RiskManagement process is designed toanalyse the exposure on various risks, byidentifying vulnerability and the probabilityof occurrence along with its impact to thebusiness operation. Through this processwe have developed a better understandingof key risks, encouraged and facilitated thesharing of best practices across the individualbusiness units and reduced the overall costof risk by continuously improving our riskmanagement approaches. Thereafter, actionthat should be taken to mitigate the impact ofsuch risks to the business are discussed atvarious levels of the Company and correctivemeasures are implemented promptly.The Company has recognised the RiskManagement process as an essentialcomponent of both the investmentmanagement process for investors in ourproducts as well as in our approach tomaintaining high quality sustainability businessfor our shareholders. This framework isdesigned to balance corporate oversight witha well-defined Risk Management processes.Enhancements are continuously made to theRisk Management framework throughout2012/13 based on the guiding principlesof the Enterprise Risk Management (ERM)process recommended by the John KeellsGroup Sustainability and Enterprise RiskManagement Division. During the secondquarter, the Enterprise Risk Managementdivision in conjunction with the heads ofbusiness units undertook a comprehensiverisk assessment of all structural, operational,financial and strategic risks that might preventeach business unit meeting it’s objectives.During such risk reviews, the Enterprise RiskManagement division facilitated and acted inthe capacity of catalysts, in assisting businessunits in identifying their overall risks.The Group Management Committee of theHotel and Property divisions along with theAudit Committee work closely with the Boardof Directors, who are in turn responsible for:• Establishing core standards for themanagement, measurement and reportingof risk.• Identifying, assessing, communicatingand monitoring risks on a Company widebasis.• Engaging with senior management on afrequent basis regarding material matterswith respect to risk-taking activities in thebusinesses and related Risk Managementprocesses.Risk Management ProcessThe Risk Management Process is carriedout in order to identify risk events andrank each risk by assigning a risk rating.This is assessed by the likelihood ofoccurrence [Probability], the level of impactto the Company and the velocity of risk isalso a factor when assessing risks. TheManagement Committee of each businessunit was appraised of the high level risks andcore sustainability risks that emerged duringthe risk review process and risk mitigationaction plans were presented for reviewby the Audit Committee. Risk reviews arecarried out on a quarterly basis to monitorand manage the status of risks mitigationactivities. The process is reviewed by theGroup Management Committee and theGroup Executive Committee of John KeellsHoldings PLC. The Audit Committee overseesthe process on behalf of the Board.The risk exposure and profile of the Group didnot change significantly during thelast year. A review of the key risks thatcould materially affect the Asian Hotels andProperties PLC along with control measuresand action plans implemented to mitigatethem are set out on the next page.
PASSION risk management31 ASIAN HOTELS AND PROPERTIES PLCAnnual Report 2012 /13Risk Category and DescriptionStrategic risksBusiness Risk• The performance of the Company could be adversely affected dueto intense competition, unfavourable economic conditions and newentrants.Operational RisksCommercial Relationship Risk• Both business units of Asian Hotels and Properties PLC, theProperty division and the Hotel division benefit from closecommercial relationships with a number of key customers andsuppliers. The disruption of this can have negative consequences.Human Resource Risk• The Company’s Human Resources are the backbone of thebusiness, holding the Company together. The growth of theCompany is heavily dependent on the talents and efforts of thehighly skilled individuals that the Company is able to attract andretain. The recruitment and retention of employees is a constantchallenge.Control Measures and Action Plans to Mitigate Risks• The Company closely monitors competitor’s activities andstrategies. This process includes the reviewing of competitor’smarket share and performance. Where necessary new strategiesare formulated or existing strategies are revised to counter theactions of competitors.• Ongoing and timely investment to upgrade properties and facilities.• Exceeding customer expectations by careful analysis of guestfeedback and tailoring appropriate and prompt responses toidentified issues.• Constant creativity and innovation in products and services.• The Company devotes significant resources to carry out regulartraining programs to upgrade its levels of care in supporting theserelationships.• The Company undertakes regular surveys of customer satisfactionwhich are reviewed on a continuous basis.• As part of the performance appraisal process carried out in thecompany, a clear vision has been set out on career developmentand succession plans, enabling the Company to retain itsemployees.• Regular training in both locally and overseas are carried out inorder to infuse motivation, commitment and empowerment amongthe staff.• Recruitment of high calibre staff, effective induction to the Groups’corporate culture, transparency in Management actions andeffective communication lines are developed in the Company’sculture to foster good employee relationships.• Developing a spirit of unity by organising associate gathering tocelebrate staff birthdays, outings, sports activities, familyget-togethers and religious activities.
Page 1 and 2: ASIAN HOTELS AND PROPERTIES PLCAnnu
Page 3 and 4: 1PASSIONASIAN HOTELS AND PROPERTIES
Page 5 and 6: PASSION3 ASIAN HOTELS AND PROPERTIE
Page 13 and 14: PASSION11 ASIAN HOTELS AND PROPERTI
Page 17 and 18: PASSION Management Discussion and A
Page 25 and 26: PASSION board of directors23 ASIAN
Page 27 and 28: PASSION annual report of the board
Page 31: PASSION29 ASIAN HOTELS AND PROPERTI
Page 35 and 36: PASSION risk management33 ASIAN HOT
Page 37 and 38: PASSION corporate governance35 ASIA
Page 65 and 66: PASSION sustainability report63 ASI
Page 83 and 84:
PASSION81 ASIAN HOTELS AND PROPERTI
Page 85 and 86:
Page 87 and 88:
PASSION sustainability report85 ASI
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
PASSION sustainability report101 AS
Page 106 and 107:
sustainability reportPASSIONASIAN H
Page 108 and 109:
Page 110 and 111:
Page 112 and 113:
Page 114 and 115:
Page 116 and 117:
Page 118 and 119:
Page 120 and 121:
PASSIONASIAN HOTELS AND PROPERTIES
Page 122 and 123:
PASSIONASIAN HOTELS AND PROPERTIES
Page 124 and 125:
eport of the audit committeePASSION
Page 126 and 127:
statement of directors’ responsib
Page 128 and 129:
STATEMENT OF INCOMEPASSIONASIAN HOT
Page 130 and 131:
STATEMENT OF FINANCIAL POSITIONPASS
Page 132 and 133:
STATEMENT OF CHANGES IN EQUITYPASSI
Page 134 and 135:
notes to the financial statementsPA
Page 136 and 137:
Page 138 and 139:
Page 140 and 141:
Page 142 and 143:
Page 144 and 145:
Page 146 and 147:
Page 148 and 149:
notes to the financial statements20
Page 150 and 151:
Page 152 and 153:
Page 154 and 155:
Page 156 and 157:
Page 158 and 159:
Page 160 and 161:
Page 162 and 163:
notes to the financial statementsFI
Page 164 and 165:
Page 166 and 167:
Page 168 and 169:
Page 170 and 171:
information to shareholders & inves
Page 172 and 173:
INFORMATION TO SHAREHOLDERS & INVES
Page 174 and 175:
5 year financial summary cinnamon g
Page 176 and 177:
NotesPASSIONASIAN HOTELS AND PROPER
Page 178 and 179:
FORM OF PROXYPASSIONASIAN HOTELS AN
Page 180:
Annual Report 2012/13ASIAN HOTELS A
show all

ASIAN HOTELS AND PROPERTIES PLC AnnuAl RepoRt 2012/13

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?