As vice president of Risk Management for Hyatt Hotels Corp., a Fortune 1000 company with nearly 500 properties in 45 countries, Mark Baker is responsible for every aspect of the company's global insurance program, as well as its health & safety, Workers' Compensation, claims-management and crisis-management functions.
With the myriad exposures associated with the hospitality industry—think swimming pools, spas, gyms, alcohol, fire, banquets, balconies and airport shuttles, plus lots of strenuous labor—one might think Baker needs to have a complex approach to risk management. But he's able to boil down his philosophy to two key tenets: a zealous focus on loss prevention and strict adherence to data-driven decision-making.
LOSS PREVENTION PAYS OFF 'IN TRIPLICATE'
Hyatt's more than 100,000 employees are trained at every level on how to do their jobs safely, says Baker, who has more than 25 years of experience in risk management, legal services and accounting. The company's seven occupational-health managers are responsible for conducting all employee loss-prevention training and injury-prevention programs; return-to-work programs; and Workers' Comp claims management.
“We've spent a lot of time putting together training programs for all of our positions,” Baker says. “The time and effort we spend in loss prevention pays off in triplicate.” When employees properly perform their tasks, he adds, “our associates should be able to go home exactly the way they came to work.”
The bell staff, for example, are trained in the appropriate weight to lift in proportion to their body size and taught to use their legs, keep their eyes even with the horizon, “and to always push, never pull a cart.” Likewise, Hyatt's bar staffers complete hours of training in the safe serving of alcohol, both when they first join the company and annually thereafter.
Employee-safety measures for certain high-risk tasks are also part of daily practice. Baker cites as one example a policy that was instituted in Hyatt's kitchens: All of its chefs are expected to use Kevlar gloves when using knives. “As anyone who's watched 'Top Chef' knows, [chefs] like to be able to touch their equipment and food,” he says. But when they're using razor-sharp knives in high-pressure situations, trying to get dishes out to eager patrons, “that can lead to very serious injury.”
“On the associate side, [we see] frequency claims without a lot of severity,” he adds. “On the guest side, we deal with many of the same exposures as any place with public accommodation.”
Hyatt helps protect its guests in part by training employees in the prevention of guest injuries. “Many of the same programs that can help prevent an associate injury like a slip, trip and fall in the back of the hotel can be applied in the front of the hotel where our guests can be found.”
Hyatt also has comprehensive emergency-response manuals tailored to each individual location that can help the hotel address virtually any contingency, from protocols for protecting guests in the event of an earthquake or tornado to employee guidelines for bear-attack prevention in the Colorado Rockies.
TURNING DATA INTO DECISIONS
Data-driven decision-making is the other primary element of Hyatt's risk-mitigation efforts.
“Hyatt Risk Management collects data, and we also utilize health and safety vendors to help us generate data,” says Baker, who reports to Hyatt's general counsel. “We use this information to determine whether an individual hotel may require additional training, resources or other guidance to reverse an issue.”
Annually, Hyatt conducts internal risk seminars in which reps from various hotels are brought together to re-address training procedures and share feedback from the field on best practices for preventing injuries on both sides of the front desk.
“Where have we had occurrences, and where, through additional retraining, can we make sure we have a more positive outcome?” he says. “We want to make sure we give those properties the resources they need to meet those challenges.”
CYBER CHECKS IN
One of the biggest exposures for the hospitality industry in general, Baker asserts, is the theft of guests' personal information. Hyatt “has taken a very proactive stance on cyber threats, including putting protections in place to address privacy issues. It's something we're embracing.”
Baker stressed that the company is well aware of the massive cost that can be incurred from a cyber breach, from informing guests to litigation and settlement costs.
“If you're proactive, knowledgeable and responsible, you can do a great job in [thwarting information thieves], but the threat moves so quickly that we're constantly going to be challenged,” he adds. “It's an ongoing challenge to stay in front of those who want to get the data, and that's true of any business that's in a fast-paced technological environment.”
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