GLION

Institute of Higher Education

Strategy, Governance and Compliance

Course Number: MSc-HEI1029
Corporate Governance, Compliance and Risk
Management in Hospitality Industry
Name of the Student:
University Name:
Subject Code:
Contents
Introduction:.........................................................................................................................................3
Corporate Governance Hospitality Industry in Denmark:....................................................................3
Risk Management in Hospitality Industry in Denmark:.......................................................................3
Benefits of Corporate Governance, Compliance and Risk Management in Hospitality Industry in
Denmark:..............................................................................................................................................4
COVID-19, Corporate governance measures and performance of hospitality industry in Denmark:. 5
Regulations chosen from each of the thematic areas and the reason of choosing so from risk
management perspective:....................................................................................................................6
Necessary Organisational set-up for the hotel to nsure compliance of the above chosen
regulations:...........................................................................................................................................7
References:...........................................................................................................................................8
Appendices:..........................................................................................................................................9
Introduction:

Corporate governance in Hospitality Industry is important for the powerful, enterprising and

judicious administration that can convey the drawn out progress of an association. Effective

Governance includes regulating the administration of an organization, overseeing gambles

and recognizing an open door, so business is done skillfully, with honesty and with due

respect to the interests, everything being equal. It embraces guideline, structure, great practice

and board capacity(Chartered Institute of Personnel and Development 2022, 2020).

Refer Appendix Below

Corporate Governance Hospitality Industry in Denmark:

Since the last few years, Corporate Governance has become one of the most well known

subjects in the Danish business area. The "Suggestions for great corporate administration in

Denmark - Corporate Governance in Denmark" given by the Nørby panel in December 2001

have had an exceptionally positive effect on the discussion of corporate administration in

Denmark. The corporate administration banter is diverse and it has no definitive delimitation.

For the most part, the discussion concerns all matters influencing the way in which

undertakings (organizations) are made due, and its objective is to further financially

successful administration(Andersen, 2000).

Refer Appendix Below

Risk Management in Hospitality Industry in Denmark:

Hotel risk management involves identifying, assessing, prioritizing and controlling risks to

hotel businesses. Hotel management is exposed to different types of risks:

Daily operations are exposed to operational risks.

When building or expanding a hotel, there is a risk that the project will fail.

Strategic risk relates to the hotel's ability to achieve strategic goals.

Security risks, including cybersecurity

Hotel Industries, including hoteliers, undergo the same risk management process as the other

industries, beginning with a risk assessment and ending with decisions on whether avoiding,

mitigating, or accepting the risks revealed by the assessment (Reciprocity, 2019).

Benefits of Corporate Governance, Compliance and Risk

Management in Hospitality Industry in Denmark:

Corporate Governance, compliance and Risks are three pillars that can assist with

guaranteeing that an organization meets its targets. This organized methodology plans to

adjust IT to business goals. It can likewise assist businesses with better overseeing dangers

and meet explicit consistence prerequisites (Silva, 2021).

At the point when an Corporate Governance, compliance and Risks system is very much

arranged and really carried out, it can convey many advantages. Corporate Governance,

compliance and Risks can lead an association to progress whenever utilized properly. This

system energizes informed dynamic which can assist with relieving risk and forestall

reputational and monetary misfortunes. Corporate Governance, compliance and Risks can
assist organizations with accomplishing a more useful and productive climate wherein all

parts make progress toward accomplishing a shared objective (Team, 2021).

COVID-19, Corporate governance measures and performance of

hospitality industry in Denmark:

The new COVID-19 emergency could be one of the most attractive and noteworthy

opportunities for businesses, funders, strategists, and many other market participants. In

addition to the overall incidence of this disease, it has spread to financially important capital

sectors and regions, thereby further negatively impacting the existence and stability of the

hospitality industry (EY Denmark, 2020).

The negative effects of covid 19 mainly affect corporate governance areas such as

hospitality. The last option serves as a powerful tool for financial development and job

creation from one side of the globe to the other. The COVID-19 pandemic has had a negative

impact on the hospitality industry and its business. (Aharon et al., 2021).

Regulations chosen from each of the thematic areas and the

reason of choosing so from risk management perspective:

From Company related regulation I have chosen Danish Companies Act (DCA),2010 It lays

out the overall corporate governance system for Danish private and public restricted risk

organizations. This is the main piece of regulation that enables the Central Government to

manage the arrangement, funding, working and ending up of organizations. The Act contains

the system in regards to hierarchical, monetary, and administrative, every one of the

important parts of an organization.

From Operations related regulations I have chosen Employment & Labour Laws and

Regulations Denmark 2022 as Employment-related regulations have been introduced to

protect workers from cheating by their bosses. Without these rules, workers are powerless

against a variety of dangers. Key business regulations include separation, minimum statutory

wages, regulations governing the safety and well-being of the working environment, and

regulations governing wages for employment of workers and young people.

From Client related regulations I have chosen Danish Data Protection Act (DDPA) 2018 as

Data protection laws are important given the fact that they provide guidelines and best

practice rules to associations and public authorities to maintain the most effective use of

personal information, including: Regulations on the handling of personal information.

Prevents individuals or organizations from owning and using inaccurate data about people.

This applies to both sensitive and business data. Give the public certainty about how

companies can use their own data

Necessary Organisational set-up for the hotel to ensure

compliance of the above chosen regulations:

Most hotels use a progressive hierarchy with predefined workspaces and offices. Your

representatives are clearly responsible and everyone knows their responsibilities. Head

supervisors are typically at the top of the pecking order, where this position manages the

various departments within the hotel.

Every particular office is controlled by medium-and low-level chiefs. They coordinate

representatives' exercises, relegate undertakings, administer work tasks and screen the general

presentation of the division they are answerable for. The monetary chief/administrator, for

instance, oversees crafted by the lodging's bookkeeper and the clerk. Operations

administrators are accountable for the staff answerable for buys and support. The design of

the hospitality business relies upon a few variables, including the foundation size, its

administrations and conveniences, its financial plan and its business objectives. Most offices

share a few critical regions for all intents and purpose, however; these generally incorporate

the chief administration, front work area administrations, housekeeping staff, kitchen staff,

viable faculty, bookkeeping and promoting. A small hotel might relegate its showcasing

exercises to the front work area division, while an extravagance resort might have a different

division responsible for publicizing, PR and deals (Picincu, 2010).

References:

Chartered Institute of Personnel and Development 2022. (2020). Corporate Governance |

Factsheets. CIPD.

https://www.cipd.co.uk/knowledge/strategy/governance/factsheet#gref

Andersen, P. (2000). Corporate Governance in Denmark. https://scandinavianlaw.se/pdf/45-

1.pdf

Reciprocity. (2019). What is Hotel Risk Management? Https://Reciprocity.com/.

https://reciprocity.com/resources/what-is-hotel-risk-management/
Team, T. H. (2021, November 22). Benefits Of Governance, Risk & Compliance. Hartman

Executive Advisors. https://hartmanadvisors.com/benefits-of-governance-risk-and-

compliance/

Aharon, D. Y., Jacobi, A., Cohen, E., Tzur, J., & Qadan, M. (2021). COVID-19, government

measures and hospitality industry performance. PLOS ONE, 16(8), e0255819.

journals.plos.org. https://doi.org/10.1371/journal.pone.0255819

Silva, L. R. D. (2021, December 13). Benefits of Compliance and Risk Management.

Https://Www.nucleodoconhecimento.com.br/.

https://www.nucleodoconhecimento.com.br/business-administration/benefits-of-

compliance

EY Denmark. (2020). COVID-19 enterprise resilience. Www.ey.com.

https://www.ey.com/en_dk/covid-19

Picincu, A. (2010). Types of Hotel Organizational Structure. Bizfluent.

https://bizfluent.com/list-6503462-types-hotel-organizational-structure.html

Appendices:

Company Related:
Topic of UK This Code Financial Reporting Council. (2018). UK

the Corporate applies to Corporate Governance Code.

Regulatio Governanc accounting Frc.org.uk.

n e Code periods https://www.frc.org.uk/directors/corpo

2018 beginning on or rate-governance-and-stewardship/uk-

after January 1, corporate-governance-code

2019. He

especially

emphasizes the

connections

between

organizations,

investors and

partners. He also

emphasizes the

importance of an

organizational

rationale and

corporate culture

alongside the

business system

that promotes

trust and

diversity of

values.

Danish It lays out the European Corporate Governance Institute.

Companies overall corporate (2021, May 5). Corporate

Act governance Governance in Denmark. ECGI.

(DCA),201 system for https://ecgi.global/content/corporate-

0 Danish private governance-denmark

and public

restricted risk

organizations

Act on This Act sets United Nations Enviornmental Plans. (2011).

restaurant guidelines with Act on restaurant and hotel food

and hotel respect to business (No. 786 of 2005). | UNEP

food exchange Law and Environment Assistance

business permitting of Platform. Leap.unep.org.

(No. 786 serving food and https://leap.unep.org/countries/dk/nati

of 2005). refreshments onal-legislation/act-restaurant-and-

(liquor and hotel-food-business-no-786-2005

mixers) by

business

organizations,

including

individual

confidential

occasions.

Danish The committees Kennedys Law. (2021). Good Corporate

corporate recommendatio Governance - Kennedys.

governanc ns applies to Kennedyslaw.com.

e Danish listed https://kennedyslaw.com/thought-

Committe companies leadership/article/nye-anbefalinger-

e om-god-selskabsledelse/
Operations Related:
Topic of Employmen This code is ICLG. (2019). Gambling Singapore Chapter.

the t & Labour applicable to Gambling 2019 | Laws and

Regulati Laws and all the Regulations | Singapore | ICLG.

on Regulations employees https://doi.org/https://iclg.com

Denmark working in

2022 Hospitality

Industries and

other

industries in

Denmark.

Work The reason for Eurofound. (2021). WORK ENVIRONMENT

Environmen this Act is to ACT. Eurofound.

t Act forestall word https://www.eurofound.europa.eu/efem

(1977:1160) related iredictionary/work-environment-act-0

sickness and

mishaps and to

in any case

guarantee a

great

workplace.

The It is the focal OECD. (2019). Home. Www.oecd-Ilibrary.org.

Environmen piece of https://www.oecd-ilibrary.org/sites/3a0

tal regulation on 3e006-en/index.html?itemId=/content/

Protection counteraction component/3a03e006-en#:~:text=The

Act, last and the %20Environmental%20Protection

amended in management %20Act%2C%20last

2017 of

contamination

in Denmark. It

sets general

quality

prerequisites

for air, water,

squander, soil

(above and

subterranean)

and

commotion.

Health and Workplace Denmark. (2018). Requirements

Safety for health and safety cooperation.

Organisatio Workplacedenmark.dk.

n (in Danish https://workplacedenmark.dk/health-

AMO) and-safety/health-and-safety-

organisation/#:~:text=Danish

%20regulations%20require%20that

%20cooperation
Client Related:
Topic of Danish This act helps Mondaq. (2017). Danish Contract Law -

the Contract the client with Contracts and Commercial Law -

Regulation Law the Denmark. Www.mondaq.com.

understanding of https://www.mondaq.com/contracts-

business and-commercial-law/1156734/danish-

arrangements contract-law

represented by

Danish

regulation

Danish this Act will itgovernance. (2020). Danish Data

Data apply to the Protection Act (DDPA) 2018 | IT

Protection handling of Governance Denmark.

Act individual Www.itgovernance.eu.

(DDPA) information https://www.itgovernance.eu/da-dk/eu

2018 proceeded as a -gdpr-compliance-dk

feature of

exercises

completed for

the benefit of an

information

regulator or

information

processor that is

laid out in

Denmark,
whether or not

the handling

happens in the

EU.