Risks Faced by Trading.com and Recommendations

GOVERNANCE,
ETHICS AND
SUSTAINABILITY

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TABLE OF CONTENTS
Introduction.................................................................................................2
Risk Exposure Calculator (REC)...................................................................3
Risks due to Growth.................................................................................3
Risks due to Organisational Culture.........................................................4
Information Handling Risks......................................................................6
Conclusion and Recommendations.............................................................8
References................................................................................................10

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INTRODUCTION
Even though Trading.com was incorporated just three years ago, the
company has established its operations in major areas including Sydney,
Brisbane, Melbourne and Adelaide. Currently, there are 100 employees
who are handling its operations and offer the services of educational
webinars and mentoring services to those individuals who wanted to
invest their money in the stock exchange. The objective of this report is to
evaluate the key risks faced by the company and provide
recommendations that will enable the company in addressing those risks
and improve its operations. In order to identify these risks, the risk
exposure calculator (REC) will be used, which was developed by Robert
Simons through which a score will be given to the company on different
risk dimensions. The total score of the company will be added to identify
the zone in which it is operating, and recommendations will be given for
addressing the risks faced by the company.

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RISK EXPOSURE CALCULATOR (REC)
Founded by Robert Simons, the REC assists companies in identifying
various risks which are faced by them in different dimensions relating to
growth, organisational culture and information handling (Simons 1999).
The corporations receive a score on each of these dimensions on a scale
of 1 to 5 in which 1 is the lowest and 5 is the highest score. The total
score of different dimensions of these three factors is added to identify
the zone of the company. A score between 9 and 20 indicates a safe zone.
A score between 21 and 34 indicates that the company is in a caution
zone, and it should improve its practices to handle its risks (Simons 1999).
A score between 35 and 45 indications the danger zone in which the
company should immediately make changes to make sure that it avoids
upcoming disasters which could harm its position.
RISKS DUE TO GROWTH
The growth of the company is one of the key threats for the company
since the lack of effective policies leads to increasing pressure on
employees, which could harm the sustainable progress of the enterprise
(Dubey, Gunasekaran & Ali 2015, pp. 120-132). Without handling the
pressure faced by the employees, the company cannot expect high
productivity from them, which also leads to delivering unsatisfactory
services to customers. The expansion plan of a company also puts
pressure on the employees since they have to stretch their work in order
to meet the business expansion goals of the company (Wolf 2014, pp.
317-328). It is important that the company should only expand its
operations to a limited extent or else it could suffer negative
consequences such as low productivity and poor consumer satisfaction
(Noe et al. 2017). While expanding its operations, the corporations should
evaluate their human capital requirements because they cannot continue
their growth until they hire an adequate number of skilled and
experienced employees who share the growth pressure of the company