IHG BUSINESS GOALS & FOCUS

GOALS
• Accelerate the growth of IHG’s core business
• Maximize returns on new initiatives such as the addition of new brands and
portfolio

FOCUS
• Build and leverage (business portfolio and operation) scale
• Strengthen loyalty programme
• Enhance revenue delivery
• Evolve owner proposition
• Generating revenue through the lowest possible cost
• Capitalize and profit from modern slavery
RISK MANAGEMENT
IHG Risk Management System

• IHG has an effective risk management system and internal controls which provide
assurance to its shareholders.
• These are well established and help IHG to protect against known and emerging
risks and to cope with the unexpected.
• The Group develops the risk management system, strategies, controls as a result
of continuous learning by management
RISK MANAGEMENT SYSTEM
TARGET
The company’s internal controls and risk management system aims to support the
achievement of business objectives and protect IHG’s business in particular :

• IHG’s brands, business model and reputation across key stakeholders

• The delivery of IHG’s strategy, commercial targets and plans for change; and
• The safeguarding of physical assets, people, systems, and processes.
FEATURES OF IHG RISK
MANAGEMENT SYSTEM
The key features of IHG’s risk management system are :

• Embedded risk management processes to consistently identify and manage key

risks to the business;
• A holistic approach to risk assessment applied through Strategic, Tactical, and
Operational risk perspectives;
• Risk strategies, controls and outcomes that support the business and reduce
unnecessary risk exposure; and
• a proactive risk and crisis management culture, through leadership and training.
 DESCRIPTION ON RISKS
• Strategic risks: These are risks arising from IHG;s relationship with the external
environment and can impact on IHG;s ambition and strategy over the long term.

• Tactical risks: These are risks that could impact the delivery of IHG’s one to three-year
targets including implementation of project. These include factors influencing IHG’s
ability to sign and open new hotels, the performance of existing hotels and delivery
of projects.

• Tactical risks: These are risks that could impact the delivery of IHG’s one to three-year
targets including implementation of project. These include factors influencing IHG’s
ability to sign and open new hotels, the performance of existing hotels and delivery
of projects.
Analysis & Proposed Solutions to tackle the
Pandemic
• Need to build a crisis management team of key-decision makers, not
limited only to the company’s leadership, but also including
representatives from at least the strategy, operations, HR,
communications, and corporate affairs functions. This team should be
empowered to make and implement decisions quickly.
• Immediately addressing the need for the maximum protection of
employees, through personal actions (hygiene, remote working, travel
freeze, avoiding group gatherings, etc.). People are a company’s most
important asset and their protection should be priority number one.
• Regularly reviewing, amending, and updating current business
continuity or contingency plans, as this an unprecedented and highly
fluid situation, which is drastically transforming existing assumptions,
and will continue to do so in the coming months.
• Ensuring that the organization, both at a local and a global level, is
aware and understands the crisis response procedures that are in
place. Equally important is readjusting business plans, but also
updating the company’s strategy for managing major crises
accordingly.
• It is believed that changes in the market bring a lot of risks, but they
can also create new business opportunities and drive innovation in
businesses and sectors. Digital media & home entertainment, as well
as social media companies, are already seeing an uplift in revenues, as
an increasing number of consumers opt for solutions that allow them
to continue enjoying their hobbies and communicate with others, all
from the comfort of their home.
• The sooner a company detects the potential threats posed by the
coronavirus crisis and organizes a robust defense and response plan,
the bigger the chances are that it will overcome this crisis with the
minimum possible losses, adapt to the new context, as well as
recognize new areas of business activity.