Open Always
Email: Call Now! +1-315 515-4588
Open Always
Email: Call Now! +1-315 515-4588

Sample Business Plan Paper on Airbnb Risk Management Plan

This sample paper on (Sample Business Plan Paper on Airbnb Risk Management Plan) was uploaded by one our contributors and does not necessarily reflect how our professionals write our papers. If you would like this paper removed from our website, please contact us via our Contact Us Page.

A Database of over Million Scholarly Resources. Start your Search Now

Sample Business Plan Paper on Airbnb Risk Management Plan


As Airbnb plans to expand into China or any other new business environment, the company has to explore the risks that may be faced in such actions. Any business must have plans for risk identification and management. Turner and Keetelaar (2005), report that risk management is an inescapable part of business operations as it is not possible to predict the nature and time of risk occurrence. Risks can be opportunity based as well as uncertainty based. Through expansion into a new environment, the risks that may be faced can be both opportunity based by virtue of the new opportunities presented in the new environment and uncertainty based due to the unpredictable business environments that may be experienced in such new environments. In either case, the risks have to be quantified and qualified for better management and prevention of escalation. At Airbnb, risk identification is the most important part of the risk planning and management process in China as well as in other countries.

Risk analysis

            For the company’s operations in China, some of the most probable risks that will be faced include: economic risks; organizational risks; legal risks; political risks; natural risks; cultural and technical risks. Although the aforementioned risk categories may comprise the most challenging risks and potentially most detrimental in terms of risk effects, there are many others including management risks, employee retention and project management risks. Risk management strategies have to be developed for the most probable and also the most adverse of all the risks. The others can however be dealt with through effective management and project supervision. Krahn (2013) opines that an effective risk definition has to be outlined prior to risk identification since a concept that is regarded as a risk by one party may not be regarded so by another. In the essay, risk is described as an unexpected occurrence that has the probability of causing harm or danger in an organization. The main objective of risk management is therefore to reduce the severity of the observed risk and subsequently prevent harm from occurring.

The first risk that the company faces in expansion is political risk. A variety of risks can be identified in this category. The Chinese political environment may not provide the stability that other nations’ political systems provide. An unstable political environment does not provide a supportive environment for business growth hence can be a challenge for Airbnb in their efforts to expand. Although this is a major risk to the business, the key challenge comes in the fact that the business has no control over the political environment of the nation. As such, the company has to operate within the political ideals supported by the nationals. As at present, the political risk of China can be categorized as low due to the peaceful coexistence that is prevalent in the country. Similarly, legal risks faced by the company originate from the Chinese law. The law can be a hindrance to smooth business operations, particularly through areas such as labor laws, import and export laws and quality and environmental factors (Shang & Chen, 2012). For effective running of Airbnb, it will be necessary for the company to deeply delve into the Chinese laws.

This will help to recognize areas where the company is most likely to face challenges. Employment cultures and laws can especially be a hindrance to effective performance (Kaplan & mikes, 2012). Evaluating this risk quantitatively shows that it is a low risk area. This is based on the fact that while the law cannot be changed by Airbnb, the company has the capacity to work within the confines of the law due to the prevalence of other factors. For instance, failure to adhere to labor laws will result in high employee turnover and the company will eventually be forced to adhere to the law. As such, it is a self managing risk.

Organizational risk can also be a serious challenge to business operations for Airbnb in its online business. For the business model desired by the organization, authenticity and originality is an essential key to business growth (Kaplan & Mikes, 2012). For this reason, maintaining an operational patent is a goal that the company has to pursue. Without efficient legal protective measures, the company can lose its patents and other intellectual property rights, making its business sound unconvincing and unrealistic. This can be classified as a moderate risk in a new environment where intellectual property laws are not sufficiently understood and where there may be divergences from the conventional laws that the company is used to. As such, the company has to develop strategies for risk management in this area through a comprehensive understanding of the intellectual property laws in China, and how these can affect their business. This must be done prior to the planned expansion.

While organizational risks address the concept of intellectual property rights, other factors can also be linked to the organizational characteristics and to their impacts on the performance of Airbnb. For instance, technical factors may also pose risks to the organization. In areas such as technological advancements, the company can lose customers if the technologies used are not at par with the competition’s developments. For instance, most of the businesses in the hospitality industry are adopting service automation and ease of use and comprehensibility are key factors that determine the preference of particular company interfaces. Airbnb must develop an interface that will be acceptable to the intended customers. The risk is however low considering the fact that Airbnb is way ahead of its key competitors by virtue of its placement on the online platform. The company however has to address the issue of natural risks that may result in technical breakdowns and subsequently hinder operational effectiveness. For instance, factors such as floods and earthquakes have the potential of resulting in communication breakdowns due to the destruction of communication channels. Since the company intends to carry out most of its communication practices via online methods, it is crucial for the company to invest in control measures, including setting up back- up communication centers in case such eventualities arise. Quantitatively, this could result in the incurrence of high initial costs in the purchase of hardware as well as software for the organization’s use.

Risk Management Plan

            Risk assessment, control and monitoring are processes that have to be conducted as frequently as every three months. Most of the risks faced by the organization are transient and are bound to change with time (Shang & Chen, 2012). As such, it may be wrong to assume that a one time management process will always be successful. Factors such as change in climatic patterns can result in the escalation of natural risks resulting in their higher quantitative evaluations. As such, risk assessment has to begin with the consideration of all internal factors such as technological application, management practices and adherence to legal requirements. This would then be followed by laying down strategies for addressing the external factors that raise organizational risks including political, economic and natural factors. Once this is done, the organization can then assign the risks quantitative values depending on their degree of severity and potential impacts. The most high severity risks must have explicit management strategies.





Kaplan, R.S. and Mikes, A. (2012). Managing risks: A new framework. Harvard Business Review.

Krahn, M. (2013). Quantitative enterprise risk management (ERM) assessment using @Risk. Palisade 2013 Risk Conference.

Shang, K. and Chen, Z. (2012). Risk appetite: linkage with strategic planning. Society of Actuaries.

Turner, K. and Keetelaar, D. (2005). Risk management guide for small businesses. Department of State and Regional Development.

Sharing is: CARING

Are you looking for homework writing help? Click on Order Now button below to Submit your assignment details.

Homework Writing Help
We Can Help you with this Assignment right now!
Sample Business Plan Paper on Airbnb Risk Management Plan

Are you looking for homework writing help on (Sample Business Plan Paper on Airbnb Risk Management Plan)? Well, you can either use the sample paper provided to write your paper or you could contact us today for an original paper. If you are looking for an assignment to submit, then click on ORDER NOW button or contact us today. Our Professional Writers will be glad to write your paper from scratch.

We ensure that assignment instructions are followed, the paper is written from scratch. If you are not satisfied by our service, you can either request for refund or unlimited revisions for your order at absolutely no extra pay. Once the writer has completed your paper, the editors check your paper for any grammar/formatting/plagiarism mistakes, then the final paper is sent to your email.

Privacy| Confidentiality

Sample Business Plan Paper on Airbnb Risk Management Plan

We do not share your personal information with any company or person. We have also ensured that the ordering process is secure; you can check the security feature in the browser. For confidentiality purposes, all papers are sent to your personal email. If you have any questions, contact us any time via email, live chat or our phone number.

Our Clients Testimonials

  • I appreciate help on the assignment. It was hard for me but am good to go now

    Impact of pollution on Environment
  • Am happy now having completed the very difficult assignment

    Creative Message Strategies
  • Your writer did a fine job on the revisions. The paper is now ok

    Ethics: Theory and Practice
  • The paper was so involving but am happy it is done. Will reach you with more assignments

    Title: Privatization in or of America
  • I expected perfection in terms of grammar and I am happy. Lecturer is always on our head but was pleased with my paper. Once again, thanks a lot

    Title: Bundaberg Inquiry
  • The paper looks perfect now, thank to the writer

    Health Care Systems
  • You helped me complete several other tasks as you handled paper. wonna thank you

    Critique Paper on Political Change

Related Articles

Sample Business Plan Paper on Airbnb Risk Management Plan

Analyze the Nursing Roles in providing Comprehensive care in a Variety of Community Health Settings

Community Settings This week’s graded topics relate to the following Course Outcomes (COs). CO3: Plan prevention and population-focused interventions for vulnerable populations using professional clinical judgment and evidence-based practice. (POs...
Read More

Case Study Assignment on Ethical Issues in Asia-Pacific business

Case study assignment on Ethical Issues in Asia-Pacific business For this assignment, students will write a case study report in 2,000 words based on a case identified with circumstance or...
Read More

Sample Report Paper on The proposed reward system and strategy for the big city university

A good reward system should motivate workers. It should also attract and retain the same workers. On the contrary, a bad reward system does not do either of these things....
Read More

Management of PCOS through Homoeopathy-A case report

Introduction PCOS is the acronym for Polycystic Ovarian Syndrome. It is the most common endocrine disorder of women in their reproductive period manifested by irregular menstrual cycles and polycystic ovaries,...
Read More

Get more from us…

Would you like this sample paper to be sent to your email or would you like to receive weekly articles on how to write your assignments? You can simply send us your request on how to write your paper and we will email you a free guide within 24-36 hours. Kindly subscribe below!

Email Address: