Risks and Recommendations for Trading.com

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Governance, Ethics and Sustainability

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Contents
Introduction....................................................................................................................................................... 2
Risks due to growth........................................................................................................................................ 3
Risk due to organisational culture............................................................................................................ 4
Information handling risks.......................................................................................................................... 5
Conclusion........................................................................................................................................................... 7
Recommendations........................................................................................................................................... 7
References........................................................................................................................................................... 9

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Introduction
In this report, the case of Trading.com will be evaluated that was founded three years
ago by Jospe Drake in order to offer the facilities of educational webinars and mentoring
facilities to clients who wanted to invest their money in the stock exchange. In order to
run its operations, the company has hired 100 employees, and its regional offices are
present in Brisbane, Adelaide, Sydney and Melbourne. This objective of this report is to
identify various risks which affect the operations of the company and provide
recommendations to address those risks. This report will use the risk exposure
calculator (REC), which was developed by Robert Simons to assess the risks (Simons
1999). There are different dimensions on which the company will receive a score
between 1 and 5 (1 being the lowest). Lastly, the total score will identify the current risk
position of the company and recommendations will be given to address those risks.

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Risks due to growth
Along with the growth of an organisation, the number of risks increases as well since
the pressure on the employees increases to make sure that they continue to work with
high productivity to meet the demand of the organisation (Ahmed & Ramzan 2013, pp.
61-68). Employees who work under pressure are more likely to find shortcuts to
achieve their targets due to which their performance suffers (Qureshi et al. 2013, pp.
764-770). They are also more likely to face burden when the business expansion rate of
the company is high, and it did not have enough number of experienced employees to
share the burden of the growth (Brown & Mawson 2016, pp. 816-836). Customer
relationships also suffer due to the lack of experienced employees since the employees
are not able to deliver the high-quality services since they find it difficult to give them
time when they are busy achieving their targets (Narayanan 2016). Inexperienced
workforce increases many risks for the organisations since it reduces their growth, and
it also creates a negative brand reputation in the market, which reduces profits of the
company (Ibrahimi & Zayed 2018, pp. 221-237).
Pressure for performance
Trading.com receives 5 because its employees are facing immense pressure on work
since they receive payment on a commission basis. The company is offering its services
in new areas without hiring experienced employees, which puts the burden on the
current employees. Complaints of consumers are increasing since consultants are
focused on finding new employees to receive more commissions since they cannot live
at $30,000 per annum, which harm the customer satisfaction level.
Rate of expansion
Trading.com receives 4 since the management of the enterprise is focusing on further
expanding its operations, and they had reduced its employment standards to hire more
employees even when they did not have any expertise. Immense pressure is imposed on
the current 100 employees who are struggling to earn a living, which makes it difficult
for them to focus on offering better quality mentoring facilities to customers. New
employees are also not experienced enough to offer effective services to customers,
which harm the customer satisfaction level.