Risk Management

Running head: RISK MANAGEMENT
Risk Management
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1RISK MANAGEMENT
Executive Summary
This report undertakes a risk assessment of the organization Property Millionaires on the
basis of the Simons’ Risk Exposure Calculator. The report segregates the risks faced by the
organization into three broad categories, namely, risks faced by the organization due to
growth, organizational culture and information handling. Furthermore, each of these three
categories has been further segregated into three sections and score is given as per the risk
faced by the organization in each of these categories. The analysis reveals the fact that the
organization belongs to the caution zone and measures had been recommended on the basis
of this. The three measures which had been recommended are offering fixed salary to the
employees, improvement of the organizational culture and offering adequate training to the
fresh employees of the organization.

2RISK MANAGEMENT
Table of Contents
Introduction................................................................................................................................3
Purpose of Risk Assessment..................................................................................................3
Method...................................................................................................................................4
Risks due to Growth...................................................................................................................4
Risks due to Organizational Culture..........................................................................................5
Information Handling Risks.......................................................................................................7
Conclusion..................................................................................................................................9
Recommendation......................................................................................................................10
References................................................................................................................................11

3RISK MANAGEMENT
Introduction
The organization Property Millionaires is an organization which offers real-estate
investment advice and services to the ordinary people along with the various educational
seminars that the organization offers to the customers so as to educate them regarding the
real-estate business. The primary philosophy which is being used by the organization is the
fact that “anybody can become a property millionaire if they have the right mind set,
education, and support”. It is pertinent to note that in the recent times the organization is
experiencing a substantial amount of growth because of the increase in the demand of the
services offered by the organization among the customers. However, there is a mixed reaction
among the employees of the organization regarding this recent growth in the business of the
organization. For example, George, the owner of the company is excited about this growth
whereas the other employees of the company are not. This is a Risk Assessment Report of the
organisation Property Millionaires and the risk faced by the organisation will be assessed on
the basis of Risk Exposure Calculator.
Purpose of Risk Assessment
Simons in his article “How Risky Is Your Company?” (1999) highlights the different
kinds of risks that the contemporary business enterprises commonly face on the basis of their
business operations and also the strategies that use for the expansion of this business (Simons
1999). More importantly, for the effective calculation of the risk faced by the different
business enterprises he proposes the tool of “Risk Exposure Calculator” that indicates the
zone to which an enterprise belongs like safety, caution or danger zone (Simons 1999). This
is important since the enterprises on the basis of the results of this assessment can formulate
the kind of strategies which are likely to help them to mitigate the adverse effects of the risks
(Sadgrove 2016). This report will utilize Simons’ Risk Exposure Calculator to evaluate the