Risk Exposure Calculator for Trading.com

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Governance, Ethics and
Sustainability

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Table of Contents
Introduction................................................................................................................................2
Risk Exposure Calculator...........................................................................................................3
A. Pressure points due to growth......................................................................................3
B. Pressure points due to culture......................................................................................5
C. Pressure points due to information management.........................................................7
Conclusion................................................................................................................................10
References................................................................................................................................11

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Introduction
Trading.com offers its customers the services of educational webinars on the stock market to
teach them above the basics of investing, and they also provide them mentoring services. It
has hired 100 employees, and its operations are situated in Melbourne, Adelaide, Brisbane
and Sydney. The objective of this report is to evaluate the case of Trading.com in order to
identify the key risks faced by the company. In order to identify these risks, the Risk
Exposure Calculator (REC) will be used, which was developed by Robert Simons. This
report will also analyse the total score of the company and recommendations will be given for
the company to address these issues.

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Risk Exposure Calculator
Robert Simons provided the REC in order to help companies in identifying their risks faced
by them. The companies receive a score on different dimensions of this calculator on a scale
of 1 to 5 (5 being the highest score) (Simons 1999). After providing the score, the total score
assists in identifying the zone in which the company manages its operations. A company
which receives a score between 9 and 20 is in the safe zone. The company which receives a
score between 21 and 34 is considered as in the caution zone. In case the score of the
company is between 35 and 45, then it is in the danger zone, and it has to take immediate
actions to reduce its risks or else it could fail in the market (Simons 1999).
A. Pressure points due to growth
Organisations face a number of challenges in the market as a result of their growth which
increases their risks and makes it difficult for them to conduct their business operations in an
effective manner (Buchanan & McCalman 2018). A high rate of business growth imposes
pressure on the employees of the company to make sure that they continue to perform better
and meet their targets in order to sustain the growth of the enterprise (Bronkhorst 2015, pp.
63-72). This pressure affects the growth of the company, and it creates challenges for the
enterprise since its customers did not receive satisfactory services from the employees which
affect their relationship (Odle-Dusseau et al. 2016, p. 296). A fast rate of business expansion
also creates challenges for the company in case it did not have an adequate number of
experienced employees that are able to handle the pressure (Arnaboldi, Lapsley & Steccolini
2015, pp. 1-22). The lack of experienced employees also creates pressure on the current
employees since they are not able to meet their targets, and they also did not deliver effective
services to customers.
i) Pressure for performance
The burden which is imposed on employees in order to meet their target and continue their
performance to sustain the growth of the company is referred to the pressure for performance.
Score: 5
Reasons