RISK MANAGEMENT IN HOTEL PROCUREMENT AND THE ROLE OF EXTERNAL AUDIT

Marina Gavrilović; Marija Gavrilović Gočanin

Marina Gavrilović Company for audit and accounting services „AUDITING“ LTD, Vrnjačka Banja
Marija Gavrilović Gočanin Company for audit and accounting services „AUDITING“ LTD, Vrnjačka Banja

Keywords: business entity, development, acquisition management, risks, control

Abstract

Successful management should ensure stable condition of an entity, successful existence on the market and continuous development of business processes. This imposes the necessity that operations and development of the business entity should be managed appropriately. Procurement function in the hotel industry has been increasingly viewed not as an administrative function, but as the creator of profit, with a significant impact on very operations and operating results of the business entity. Because of specificity it represents, being it also an area of the increased risks, it must be managed appropriately. Therefore it is necessary to establish an effective procurement system, which involves the adoption of an appropriate risk management strategy. This means that procurement should be performed in a timely manner, with appropriate quality and in the best conditions. Effective system of risk management includes the active control and supervision of external audit. Seen in such a way, active risk management and external audit contribute to eliminate or minimize the risk, enable bad consequences on one side and enforce the chances of assuring continuous growth and development of the business entity on the other side.

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