Risk Management and Operational Performance of Hospitality Enterprises – A Case Study in the North Central Region of Vietnam

Abstract

The goal of creating, forming, and developing businesses in general and hotel businesses in particular has the ultimate goal of profit, high and stable profitability is the goal that any business However, due to the specific business line, in addition to the experience factor of the manager, the size and composition of the board of directors, the brand, the location of the hotel or the satisfaction of the customers. customers and employees... decide the profitability of the hotel business, sustainable factors such as types of risks may be encountered: Risks on hotel development strategy; Brand reputation risk; Financial risks… also have a significant impact. The problem is how to strengthen the risk management that hotel businesses face in business and at the same time increase the profitability of the business. In practice, there are many methods to measure risk, but one of the most widely accepted methods of predicting risk and bankruptcy today is the US economist's Z-score. Edward I. Altman, New York University faculty member set. In the US, about 95% of bankruptcies are forecast from the Z-score one year before bankruptcy, but this rate drops to just 74% for 2-year forecasts. From the initial Z-index forecast, Professor Edward I. Altman has developed it into Z' and Z'' to be applicable to each type and industry of the business. The Z'' coefficient is similar to the S&P credit rating.