Improving financial risks managementprocesses in business operations of DanaSailing Hotel

Stemming from theoretical and practical requirements in the hotel business, the writer found it necessary to study the topic " Improving financial risks management processes in business

GRADUATION DISSERTATION

Improving financial risks management processes in business operations of Dana Sailing Hotel under Tran Gia Khanh

Co.ltd

Proposed supervisor:

M Fin.: Bui Phan Nha Khanh

Student:

Lê Chí Thiên

Class: 42K15.3 – CLC

DETAILED OUTLINE

A.

INTRODUCTION

I.

General description

According to the integration and development roadmap of the economy, on November 7, 2006, Vietnam officially joined the World Trade Organization As members of the WTO, businesses will receive very good opportunities but at the same time face many great challenges in competition that require businesses themselves to find their own appropriate direction to be strong enough to overcome any adversities

To successfully implement the process of industrialization and by 2025, Vietnam's tourism sector still plays an pivotal role in the road to gain prosperity in Vietnam, and a way to show the internation who we are Tourism is an integrated economic sector and a particular type of economy The special feature is expressed in the following aspects: it is integrated, interdisciplinary (between tourism and transportation, agriculture, natural resources and environment, culture, sports ); highly social one (attract all sectors of society to participate); The industry is eco-friendly, clean and brings significant high economic efficiency Tourism developments will benefit the country in terms of both economics and political, cultural and community However, because of its namely factors, the tourism industry is also particularly sensitive to changes and fluctuations in the economics, political and social situation in the country and abroad Business activities in the tourism industry, especially in the field of accomadations such as hotels, resorts, businesses will face a lot of risks, with the respective of objective and subjective

II.

Significance of the Topic

In any country, the tourism industry plays an essential role in promoting economic growth, supporting development of other industries, creating jobs for workers and paying taxes to the state budget Especially for developing countries like Vietnam, the economic growth has led to a strong increase in tourism demand However, in the business process, under the impact of many factors, both objective and subjective, businesses encounter risks that are inevitable, especially in the hotel business We cannot eliminate risks, we can only perceive risks and take measures to

limit the losses caused by it or accept it On the one hand, in a market economy, in order to

achieve success and profit, managers must also accept certain risks However, if the risks are high, having negative effects, exceeding the limits and control will make the enterprises lose money, even push the enterprises to the brink of bankruptcy Therefore, it is necessary for service enterprises to make decisions on financial risk management to minimize potential losses Specially, the context of economic current conditions latent factors causing instability in the operation of enterprises as today The tourism industry in general and the hotel industry in particular are more susceptible to risks than others because the specific characteristics of the industry are those affected by other industries, other calendars, and other sources With each other, any changes of a sector can cause a certain loss in hotel business activities in terms of

economy, reputation, human resources, community

Currently, Corona infectious disease has caused much damage to the economy in general as well as

tourism and hotel business in particular Thousands hotel have to shutdown because of lacking capitals to remain operation However, identifying the hotel industry's risks is equivalent to solving a multi-system problem, with many complex variables, the results of the risk forecast for the hotel industry are too few sometimes inaccurate, identifying risks, measuring and determining their losses to provide preventive and remedial methods is essential for businesses to ensure stable development in the time of crisis

There are quite a lot of documents at home and abroad addressing risks, however these documents

only address risk issues in general and for a number of industries such as the currency business, precious metals business, insurance business, construction business In the field of hotel business

so far, there are few studies which have a complete and systematic way to make evaluation comments, especially given the methods to identify and evaluate the losses of financial risks on this industry

Stemming from theoretical and practical requirements in the hotel business, the writer found it

necessary to study the topic " Improving financial risks management processes in business

operations of Dana Sailing Hotel under Tran Gia Khanh Co.ltd" to contribute to further improvement of the theoretical system in the hotel business and address some specific solutions

to enhance the effectiveness of financial risk management for Dana Sailing Hotels in general and hotel systems in Vietnam in particular

Aim of the Topic

On the basis of some fundamental business risk issues and combined with the crisis situation today, the topic have the following main objectives:

- Types of risks and causes of risks that we often faced in hotel business

- Evaluate the status of financial risk management in business operations of Dana Sailing Hotel

- Study the model of financial risk management in business operations of Dana Sailing Hotel, thereby drawing advantages and disadvantages in the work to complete the model

- Proposing solutions to prevent, avoid, eliminate or minimize financial losses that financial risks may cause

From the above goals, we have the following research questions:

• Which basic research criterias should be used to evaluate the effectiveness of financial risk management in business operations of Dana Sailing Hotel?

• What are the successes and limitations of the management of financial risks in the business

of Dana Sailing Hotel?

• What does Dana Sailing Hotel need to do and implement solutions to improve the financial risk management of Dana Sailing Hotel?

Meaning: The research results will help Dana Sailing hotel become more aware of the risks of

financial risks, understand the benefits of financial risk management to choose the appropriate solution for their business

Research Objects and Area:

1.

Research object:

The study of theoretical and practical issues of financial risk management in business operation and the overall financial risks that is likely to affect the Dana Sailing Hotel

2.

Research area:

- Research content: focus on researching financial risk management in business activities at

Dana Sailing hotel

- Research space: topic research on general datas of Dana Sailing hotel and current situation of

financial risk management in business activities at Dana Sailing hotel

- Research period: survey of financial risk management activities in business activities at Dana

Sailing hotel within 3 years: 2017-2019 Research datas closest to the research period of the thesis, from that, addressing the most practical solution to financial risk management in business activities at Dana Sailing hotel

V.

Data and Research Methods

Based on the theory of financial risk management and research objectives, the author is determined

to use dialectical materialism combined with popular methods in Economic research such as collecting and analyzing methods, summarizing, comparing and comparing data, etc Based on firm datas and documents to analyze, evaluate, from which to draw conclusions, draw experience from practice, solve and unravel the research goals set from the thesis

- Analyzing and synthesizing theory: Studying related Master thesises defensed at the

University of Economics and University of Danang on financial risk management in hotel business activities, scientific articles in journals, research articles, reference textbooks of domestic and foreign authors From which to select, synthesize and intergrate each side, each information section to point out the system of theoretical basis for financial risk management

in hotel business service

- Statistical method: Collecting, summarizing, presenting and calculating data related to the

current situation of financial risk management in business operations at Dana Sailing Hotel 2017-2019

- Survey the current situation method include:

 Survey internal factors the of the Dana Sailing Hotel: by relying on quarterly reports,

secondary data sources, documents, official letters, issued and amended decisions

Analyze old and new regulations to see management reforms

 Surveying external factors the of the Dana Sailing Hotel: Based on information from

media such as television, newspapers, local events to capture the phenomena, outstanding events, breaking news related to the hotel business industry that has been going on, where it comes from and what the risk may be

VI.

Meaning in scientific and practical terms of the Research

1.

Scientific significance:

The thesis contributes to systematize the theory of financial risk, financial risk management,

especially financial risk management in the business operations of the hotel From there, give specific criterias in evaluating the effectiveness of improving the financial risk management in the business operations at the Dana Sailing Hotel in chapter 2

1.

Practical significance:

The thesis clearly analyzes the current situation of financial risk management in business operations

at Dana Sailing Hotel 2017-2019 Draw out the advantages and disadvantages as well as the control techniques that have been and haven't been used, the consistency or not between the management objectives and the way management is conducted In general, with the analysis of

necessary data, the thesis has a overall view of the business situation at Dana Sailing Hotel

2017-2019 and a detailed view of the management of financial risk in business activities of the hotel

At the same time, inheriting the recommendations and solutions of the previous dissertations, and refer to the advantages of other hotels in reality From there, propose ideas, appropriate

implementation methods to improve the efficiency of financial risk management in business operations at the Dana Sailing Hotel, in order to increase corporate value, improve te competitiveness for the business in the near future

VII Planned Research Structure

PLANNED RESEARCH STRUCTURE

GRATITUDE WORDS REASSURING WORDS

A INTRODUCTION

1 General description

2 Significance of the Topic

3 Aim of the Topic

4 Research Objects and Area

5 Data and Research Methods

6 Meaning in scientific and practical terms of the Research

7 Planned Research Structure

8 Overall research situation

B CHAPTER 1: Review of literature about financial risks management

processes in business operations

1 Business operations in Hotel field:

a Concept of hotel business operations

b Features of hotel business operations

c Categorize hotel business operations

2 Financial risks in hotel business operations.

a Concept of financial risks in hotel business operations

b Categorize financial risks in hotel business operations

c The cause of financial risks in hotel business operations

d The detrimental impacts of financial risks in hotel business operations

3 Controlling financial risks in hotel business operations at Dana Sailing Hotel

a Concept of controlling financial risks

b Purpose of controlling financial risks in hotel business operations

c Teachniques to control financial risks in hotel business operations

d Criterias to appraise the results of controlling financial risks in hotel business

operations

e Factors effects on financial risks management processes in hotel business

operations

4 Conclusion on Chapter 1

C CHAPTER 2: Appraise the Current state on financial risks management

processes in business operations of Dana Sailing Hotel

1 Company Introduction:

a History of formation and development

b Organizational structure of Dana Sailing Hotel

c Functions and duties

2 Business Context of Dana Sailing Hotel in 2017-2019:

a Internal Context

b External Context

3 Current Situation of financial risks management processes in business

operations of Dana Sailing Hotel:

a Overview of financial risks management in Dana Sailing Hotel

b Current situation in using methods and techniques to regulate financial risks in

business operations at Dana Sailing Hotel

c Outcome of the financial risks management processes in business operations of

Dana Sailing Hotel

d General assessment of the financial risks management processes in business

operations outcomes at Dana Sailing Hotel

4 Conclusion on Chapter 2

D CHAPTER 3: Suggestions and Solutions to Improving financial risks

management processes in business operations of Dana Sailing Hotel

1 Basis of recommendations:

a Nation authority orientations for business activities of hote service industry

b Orientations and objectives on affecting financial risks management processes

in business operations of Dana Sailing Hotel

c Forecast of factors affecting financial risks management processes in business

operations of Dana Sailing Hotel in the near future

2 Comment on the current processes:

a Strenths

b Weaknesses

3 Suggestions:

a For Dana Sailong Hotel

b For relavant fields affecting on Dana Sailing Hotel

4 Solutions:

F CONCLUSION

REFERENCES APPENDICES

VIII Overall research situation

Managing financial risk in general and in hotel business activities in particular is always a top priority for hotel business activities In the current context, when the country's economy is becoming difficult because of the Corona pandemic, requiring professionalism, safety and sustainability to be the top priority, a series of hotels have not taken it into consideration The main focus is on financial risk management, which reduces operational efficiency and sometimes leads to bankruptcy Because of this, there have been a lot of hard work as well as astute analyzes

by many authors who have mentioned this issue, not only by the current situation but also in

general for all economic situation of the year However, each research product has its own strengths and shortcomings In general, the research works are only local, only research and analysis within the scope of the study of each separate segment in areas other than hotel business

It is worth noting that the concept of "risks" is sometimes inconsistent For example, Nguyen Thi Lien Huong (2015) asserted: "Risk is unexpected uncertainty, causing damage and can be measured", this is an old concept, different from the current concept In addition, sometimes the author has not clearly differentiated between risk management measures and risk financing measures.In the in-depth study of each stage of credit risk management in business activities, the author hastily analyzed the main topic without forgetting the other but equally important aspects

In particular, Dao Thi Bich Phuong (2015), going into the process of financial risk management

in business, without skipping the overview of financial risk management, from which the purpose

This important business approach, as well as no overview of the relationship and importance of financial risk management for financial risk management in business Another common point in the research projects is that it is not yet emphasized the functions and tasks of risk management,

because of that, the content is incomplete, mainly focusing on preventive measures At the stage

of appraisal and supervision of business activities, very little mention of derivative financial measures and other financial risk control operations For example, Tran Thi Ha Thanh (2015), or

Vu Ngoc Thao Linh (2014) helped readers to understand the purpose, principles, steps to fully implement all four stages of the risk management process However, this is a topic with a very

wide writing range, so the research of the authors is somewhat scattered, not intensive about a fixed stage, not highly applicable Besides, there are many insightful articles that have given many solutions for the current financial risk management Like Le Van Chi and Hoang Trung Lai (2014) when discussing the factors affecting the financial risk of hotels, they used the regression estimation method to draw conclusions about the influence of individuals factor to financial risk The author's article has suggested a new direction for financial risk management In addition, on daotao-vhttdl, the article "Necessity of Hotel Risk Management" on June 3, 2018 also presented a lot of solutions to prevent risks for hotel business

Inheriting the right rationale of the previous dissertations, summarizing and learning related articles, and supplementing and completing shortcomings including: accurate conception of risk and purpose of risk management, as well as the purpose, how to choose the financial risk management method in business activities, clarify the evaluation criteria to make appropriate recommendations

in the context of the crisis because of the epidemic that have been around The writer presents the