As vice president of Risk Management for HyattHotels Corp., a Fortune 1000 company with nearly 500properties in 45 countries, Mark Baker is responsible for everyaspect of the company's global insurance program, as well as itshealth & safety, Workers' Compensation, claims-management andcrisis-management functions. 

With the myriad exposures associated with the hospitalityindustry—think swimming pools, spas, gyms, alcohol, fire, banquets,balconies and airport shuttles, plus lots of strenuous labor—onemight think Baker needs to have a complex approach to riskmanagement. But he's able to boil down his philosophy to two keytenets: a zealous focus on loss prevention and strict adherence todata-driven decision-making. 

LOSS PREVENTION PAYS OFF 'IN TRIPLICATE'

Hyatt's more than 100,000 employees are trained at every levelon how to do their jobs safely, says Baker, who has more than 25years of experience in risk management, legal services andaccounting. The company's seven occupational-health managers areresponsible for conducting all employee loss-prevention trainingand injury-prevention programs; return-to-work programs; andWorkers' Comp claims management.

“We've spent a lot of time putting together training programsfor all of our positions,” Baker says. “The time and effort wespend in loss prevention pays off in triplicate.” When employeesproperly perform their tasks, he adds, “our associates should beable to go home exactly the way they came to work.” 

The bell staff, for example, are trained in the appropriateweight to lift in proportion to their body size and taught to usetheir legs, keep their eyes even with the horizon, “and to alwayspush, never pull a cart.” Likewise, Hyatt's bar staffers completehours of training in the safe serving of alcohol, both when theyfirst join the company and annually thereafter. 

Employee-safety measures for certain high-risk tasks are alsopart of daily practice. Baker cites as one example a policy thatwas instituted in Hyatt's kitchens: All of its chefs are expectedto use Kevlar gloves when using knives. “As anyone who's watched'Top Chef' knows, [chefs] like to be able to touch their equipmentand food,” he says. But when they're using razor-sharp knives inhigh-pressure situations, trying to get dishes out to eagerpatrons, “that can lead to very serious injury.”

“On the associate side, [we see] frequency claims without a lotof severity,” he adds. “On the guest side, we deal with many of thesame exposures as any place with public accommodation.”

Hyatt helps protect its guests in part by training employees inthe prevention of guest injuries. “Many of the same programs thatcan help prevent an associate injury like a slip, trip and fall inthe back of the hotel can be applied in the front of the hotelwhere our guests can be found.” 

Hyatt also has comprehensive emergency-response manuals tailoredto each individual location that can help the hotel addressvirtually any contingency, from protocols for protecting guests inthe event of an earthquake or tornado to employee guidelines forbear-attack prevention in the Colorado Rockies.

TURNING DATA INTO DECISIONS

Data-driven decision-making is the other primary element ofHyatt's risk-mitigation efforts.

“Hyatt Risk Management collects data, and wealso utilize health and safety vendors to help us generate data,”says Baker, who reports to Hyatt's general counsel. “We use thisinformation to determine whether an individual hotel may requireadditional training, resources or other guidance to reverse anissue.”

Annually, Hyatt conducts internal risk seminars in which repsfrom various hotels are brought together to re-address trainingprocedures and share feedback from the field on best practices forpreventing injuries on both sides of the front desk.

“Where have we had occurrences, and where, through additionalretraining, can we make sure we have a more positive outcome?” hesays. “We want to make sure we give those properties the resourcesthey need to meet those challenges.”

CYBER CHECKS IN

One of the biggest exposures for the hospitality industry ingeneral, Baker asserts, is the theft of guests' personalinformation. Hyatt “has taken a very proactive stance on cyberthreats, including putting protections in place to address privacyissues. It's something we're embracing.”

Baker stressed that the company is well awareof the massive cost that can be incurred from a cyber breach, frominforming guests to litigation and settlement costs.

“If you're proactive, knowledgeable and responsible, you can doa great job in [thwarting information thieves], but the threatmoves so quickly that we're constantly going to be challenged,” headds. “It's an ongoing challenge to stay in front of those who wantto get the data, and that's true of any business that's in afast-paced technological environment.”