ASIAN HOTELS AND PROPERTIES PLC AnnuAl RepoRt 2012/13

isk managementPASSIONASIAN HOTELS AND PROPERTIES PLCAnnual Report 2012 /1332Risk Category and DescriptionBrand image and Reputation Risk• The Company’s success depends on the continued strength andrecognition of the brand on a local and regional basis.• The “Cinnamon” name is primary to its business as well as to theimplementation of its strategy for expanding its businesses. Thiswill depend largely on the success of its ability to provide highqualityproducts and services to all its clients.Liquidity and Credit Risk• The economic instability, high inflation rates, adverse foreigncurrency fluctuations and the global monetary crisis could affectthe Company in recovering the cash from the clients of the hoteland tenants of the Mall.• Exposure and losses due to default of settlement by debtors.Interest Rate Risk• Drop in interest rates will lead to a lower interest income as a resultof which, the Company would have an impact on its other Income.Technology and Data Protection Risk• Failure to keep pace with developments in the technology spherecould impair our competitive position and operation.Control Measures and Action Plans to Mitigate Risks• Regular brand Audits of the “Cinnamon” brand is carried out.• Both the Hotel division and the Property division ensuresthat they secure the most sought after and qualified staff tohold high Managerial positions (in the different hierarchies).Continuous attention is focused on the environment and health& safety concerns by complying with HACCP and other qualitycertifications.• The brand of “Cinnamon” with emphasis on maintaining MinimumQuality Standards and Standards of Performance carries outongoing reviews of guest comments in order to exceed customerexpectations.• Encouraging and nurturing responsible corporate citizenshipthrough CSR initiatives.• Continuous monitoring and reviewing of on-line customer reviewsand rating.• Regular review mechanisms are in place to monitor theperformance of the Company against approved budget targets toachieve a balance between liquidity and profitability.• The Company actively carries out trade debtor balance reviewswith review meetings held on a consistent and continuous basis.• Credit policy and stringent controls are in place to mitigate theimpact of default.• The Company has taken measures to maximise the interestincome with the assistance and guidance of the JKH GroupTreasury Department.• The IT division of the sector and the John Keells Group haveimplemented procedures to safeguard the computer installations ofthe Company to ensure continuity of operations.• While the group’s operations are reliant on information technology,stringent security measures, disaster recovery procedures andbusiness continuity plans implemented, there are group-widemeasures to ensure the mitigation of significant informationtechnology risks.• A clearly defined IT policy is communicated to all associates.