Risks and Recommendations for Trading.com

Governance, Ethics
and Sustainability
2019

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CONTENTS
Introduction...............................................................................................................................2
Risks due to growth....................................................................................................................3
Risks due to organisational culture............................................................................................4
Risks of information handling....................................................................................................5
Conclusion..................................................................................................................................8
Recommendations.....................................................................................................................8
References................................................................................................................................10

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INTRODUCTION
The case of Trading.com will be analysed in this report, which was founded three years ago
in order to offer educational seminars and mentoring services to individuals who wanted to
invest in the stock market. Currently, the company has 100 staff members, and its regional
offices are situated in Melbourne, Sydney, Brisbane and Adelaide. The objective of this
report is to evaluate the key risks which affect the operations of the company. This report
will use the risk exposure calculator (REC) to assess these risks, which were developed by
Robert Simons (Simons 1999). A score between 1 and 5 (5 being the highest) will be given to
companies, and the total score will be evaluated to analyse its position. Recommendations
will also be included for the company to address these challenges.

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RISKS DUE TO GROWTH
In case the employees are facing high-performance pressure in the organisation, then their
performance is likely to suffer since the productivity of employees reduces (Upadhaya,
Munir & Blount 2014, pp.853-875). The employees find it difficult to cope with the high
pressure, and they also find it difficult to work at their highest productivity while facing
burden to achieve targets. While setting targets for employees, the management should
consult with them to make sure that they did not put an unnecessary burden on them.
Targets are not the only source of pressure for employees, a high rate of business growth
also puts pressure on them especially when the company did not hire an adequate number
of workers to share the pressure of the business growth (Guest 2017, pp. 22-38).
This also harms the customer satisfaction level in the company since employees find it
difficult to achieve their targets and provide effective services to customers at the same
time (Saeidi et al. 2015, pp. 341-350). Employees start to reduce their focus on the quality of
their performance to make sure that they meet up with the high growth requirements of
the company. Furthermore, if the company did not have an adequate number of staff
members who have the experience, then it also puts pressure on the employees, and it
becomes difficult for them to make sure that they meet their targets and provide high-
quality services to customers (Haumann et al. 2014, pp. 78-102). In order to provide
effective customer services, the companies should not reduce their employment standards
since hiring inexperienced employees can harm their customer satisfaction level as it
becomes difficult for employees to deliver effective services to customers (Amoopour,
Hemmatpour & Mirtaslimi 2014, pp. 1-6).
Performance pressure
Currently, the pressure on the employees of Trading.com is high due to which it received a
score of 5. The targets are set without their consultants or input, and they receive their
salaries on a commission basis which enforce them to bring more customers to earn a
decent living. The fixed salary of $30,000 is not enough for them to live a comfortable life in
Australia, which further increases pressure on them to the performance that results in
harming their productivity.