Assessment of Risk

Running head: ASESSMENT OF RISK
ASESSMENT OF RISK
Name of the Student
Name of the University
Author Note

1ASESSMENT OF RISK
Introduction
The risk of a firm or an organization can be defined as the vulnerability of firm to losses
due to certain pressure points that influence the success or the failure of a company. The
successful growth of an organization depends on a number of factors which involves
organizational growth, the culture of the organisation in terms of work, the employee satisfaction
and work motivation and most importantly the proper management of the company. The growth
of a company also depends largely on the governance of the organisation and the better
governance helps the company to reduce the chances of risks that might make the company
susceptible to loses. Even when a company is experiencing good phases of growth and
expansion, the internal procedures and governance should be monitored to check any fault that
might turn out to be a risk for the long run for the company. This report will assess the risk of a
fictional company named Trading.com involved in the business of imparting courses on financial
investment to the common public and deriving business through the courses. The risk assessment
has been on the basis of a risk assessment calculator which rates the varying degree of risk on a
scale of one to five based on three major pressure points (Simons, 2018). This paper will also
look into the risk analysis of the company by evaluating the pressure points that are generated
due to the growth of an organisation, the pressure points that are generated due to the culture of
an organisation and involve the internal competition and rewards for taking risks and
entrepreneurial ventures and finally the pressure points that develop due to mismanagement of
information. The various pressure points for the Trading.com will be evaluated and thereafter the
risk factors will be analysed and the total output will be evaluated to understand the amount of
risk that Trading.com is currently exposed to.

2ASESSMENT OF RISK
Discussion:
A brief overview of the Organisation:
The company that we would be discussing for the essay is a company that offers share
investment course to make people aware about capacity to invest and thereby enables them to
make investments as a successful investor. The company was founded three years back by Jospe
Drake, who is the current CEO of the company and have taken the company to great heights. The
company has grown rapidly with over 100 employees and has operations available at three more
locations which includes Sydney, the Melbourne, Brisbane and Adelaide. The company has
grown considerably with an increase in business and has expanded their operation to more than
one locations. The development of the company has spanned over three years and the company
has grown at a rate that has made it all the more difficult to manage. The growth of the company
has outweighed the balance and the rate of induction of new employees is lesser than their rate of
expansion. The scenario of the company exposes it high levels of risk and it is immensely
important for the management to take care of the pressure points to reduce the risk and increase
the efficiency and productivity of the company in a positive manner. The following sections will
evaluate the pressure points of Trading.com and will rate them on the risk calculator accordingly.
I. Pressure points owing to growth
The growth of an organisation comes with increase in the business but also depends upon
how the company manages its growth. With the growth of the company, the company needs to
monitor its operation and business in manner that reduces the change of risks. The issues that
create stress or pressure for the company due to its growth can be attributed to pressure of
performance or simply ‘performance pressure’ in the company. The growth of a company leads
to increasing pressure of performance among the employees and this can lead to over stress of

3ASESSMENT OF RISK
the employees and exhaust them and can also reduce the job satisfaction among the employees.
This is one of the major factors for assessing risks due to growth and as for the scenario of
Trading.com, the company has a high level of performance pressure and a value of 4 can be
attributed to the company. The next factor that influences the level of risk due to growth is the
rate of expansion. Any organisation needs to balance its rate of expansion against its functional
cost. The rate of expansion should not exceed the establishment or running cost. Trading.com
has expanded enormously over the three years span time and have not balanced their rate of
expansion with that to their capacity to manage. The rate of expansion factor for Trading.com
can be attributed to 5. This company has grown considerably within a short period of time and
this a factor that exposes Trading.com to imminent risk. The third attribute of pressure due to
growth involves the number of inexperienced employees. The company being newly formed has
very less experience in the industry and the employees also are not experienced in this
organisation. Though some might have other professional experience therefore the value allotted
for this attribute can be deemed as 3. The factors that determine the risk due to growth should be
monitored based on these attributes and the risk exposure for Trading.com can be tabulated as
follows owing the amount of risk associated with each of the factors discussed above.
 Pressure for performance: 4
 Rate of expansion: 5
 Inexperience of key employees: 3
(Appendix 1: The Risk exposure Calculator)