Risks and Recommendations for Trading.com

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Governance, Ethics and Sustainability

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Table of Contents
Introduction............................................................................................................................ 2
Purpose.............................................................................................................................. 2
Method................................................................................................................................ 2
Risks due to Growth...............................................................................................................3
Risks due to Organisational Culture.......................................................................................4
Information Handling Risks.....................................................................................................5
Conclusion............................................................................................................................. 7
Recommendations................................................................................................................. 7
References............................................................................................................................. 9

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Introduction
Trading.com was founded three years ago, and it is a medium-sized start-up that offers
educational seminars and other related mentoring services to people who are interested in
investing in the stock exchange. The regional officers of the company are situated in
Sydney, Brisbane, Adelaide and Melbourne.
Purpose
The aim of this report is to evaluate the current risks exposure of Trading.com and provide
recommendation for addressing those risks.
Method
The risk exposure calculator (REC) will be used in this report and recommendations will be
given for the company to address those risks. Simons (1999) provided the REC that assists
companies in identifying the key challenges faced by them to make sure that they implement
policies which are targeted towards increasing their profitability in the future. The companies
can get a score between 1 and 5 in the REC where 1 is the lowest. The total score of the
company will be evaluated, and practical recommendations will be made to make sure that
the company is able to reduce its risks.

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Risks due to Growth
The intensity between companies is increasing because of growth in competition which
requires them to make sure that they implement policies that are focused towards increasing
their performance in the market; however, it leads to increasing pressure on employees
which harm the growth of the company (Roskes et al. 2013, pp. 803-813). Organisations
have to make sure that their policies did not impose an unnecessary burden on employees
or else their productivity could suffer, which harm the growth of the enterprise (Beck &
Schmidt 2013, p. 354). Organisations that wanted to expand their growth have to focus on
continuously expanding their operations in the market to make sure that they increase their
customer base and profitability; however, the rate of expansion should match with the
employees’ abilities to handle the pressure or else the company could suffer (Hyatt &
Spletzer 2013, p. 5). Expanding operating in new markets without hiring an adequate
number of employees affects the services offered by the company, and it also decreases
their quality of services given to the customers (Haidar 2012, pp. 285-307). A skilled
workforce enables organisations to make sure that they efficiently conduct their business
operations while reducing their costs and building strong relationship with customers;
however, inexperienced employees are a threat to the company, and it makes it difficult for
the company to generate a competitive advantage in the industry (Violette, Violette &
Hendrix 2013, p. 11).
Pressure for performance
Trading.com received 5 points in this factor because it has set high targets for its employees
without consulting with them regarding whether they are appropriate or not. Jospe Drake
provided that effective performance of the employees is the key to the success of the
enterprise. However, most of the target set by the company is considerably high, which
resulted in creating an unnecessary burden on the employees. The company is also offering
a $30,000 per annum salary package to employees; however, it is not enough for employees
to live a decent life in Australia.
Rate of expansion
Trading.com received 4 points because its rate of expansion is creating high pressure on
employees. Drake provided that the company is not able to hire enough skilled and talented
staff members while comparing with its rate of expansion. Due to this factor, the pressure on
the current 100 employees is increased to make sure that they meet the targets set by the
management. It adversely affects the relationship with customers because the consultants