Governance, Ethics and Sustainability - Risk Analysis of Trading.com

Running Head: GOVERNANCE, ETHICS AND SUSTAINABILITY
GOVERNANCE, ETHICS AND SUSTAINABILITY
Name of the Student:
Name of University:
Author Note:
Table of Content

1GOVERNANCE, ETHICS AND SUSTAINABILITY
s
Introduction......................................................................................................................................2
A. Pressure points due to growth..................................................................................................2
Pressure for performance.............................................................................................................2
Rate of expansion........................................................................................................................3
Inexperience of the key employees..............................................................................................4
B. Pressure points due to culture...................................................................................................4
Rewards for entrepreneurial risk taking......................................................................................4
Executive resistance to bad news................................................................................................5
Level of internal competition.......................................................................................................6
C. Pressure points due to information management.....................................................................6
Transaction complexity and velocity...........................................................................................6
Gaps in diagnostic performance..................................................................................................7
Degree in decentralised decision making....................................................................................8
Reference.........................................................................................................................................9
Appendix........................................................................................................................................11

2GOVERNANCE, ETHICS AND SUSTAINABILITY
Introduction
Organisational risk is considered to be one of the great challenges that any business
organisation can face in course of doing business in a competitive market (Barrett 2018). There
are different types of risks that the companies often face in terms of organisational culture,
business orientation and the customer services. In this context, it is important for the business
organisations to identify the risks in brief span of time and take adequate measures in order to
resolve it. Therefore, the case study organisation Trading.com is also urged for an effort to
analyse the risks and set a risk preference on the basis of the magnanimity of its value. However,
it is impossible to identify the risks based on its value. Therefore, a risk exposure calculator has
been taken n order to manage the risks on its value. The report aims to identify the risks only and
assembled the risks on the basis of its intensity. In fact, the risks are categorised in three parts
such as growth, culture and information management. Those key areas encompass a detailed
understanding of the entire process.
A. Pressure points due to growth
Pressure for performance
The intense market demand in Australia pushed Trading.com to impose more pressure
on the employees in order to bring more efficacies into the organisational practice. From the
research of Martinez et al. (2017) it can be stated that it is important for a medium scale
organisation to establish business on the basis of extracting maximum ability of the employees.
For Trading.com also the organisation started focusing on aggressive sales and it requires using
maximum efforts of the employees. As a matter of fact, the risk factor for Trading.com is that

3GOVERNANCE, ETHICS AND SUSTAINABILITY
the decision making process is top down and the senior management never listens to the
subordinates. As a result of that the employees failed to ventilate their grievances through
effective channels. Choi (2019) articulated that it is essential for the business organisation to
foster better practice by incorporating the voice of the employees. However, for Trading.com
the senior management never evaluate the efficiency and skills of the employees. Without having
knowledge in the ground reality it is not possible for the CEO Jospe to implement a decision.
Thus the employees feel pressure to work in Trading.com. Based on this understanding, the
calculator measures it risk 4 due to havoc pressure on the employees.
Rate of expansion
Trading.com is focusing on high rate of expansion into the sales growth and earns high
profitability. However, it is not possible for the business organisation to implement enough
pressure on the prospect of making an effective growth due to lack of knowledge in the ability
and skill of the employees. Almatrooshi, Singh and Farouk (2015) advocated that the growth and
progress of an organisation is highly depended on the practice of the employee ability and
workforce strength. In case of Trading.com though the company opens four branches into the
business districts of Australian, the number of employees are not big enough to face bulk of
pressures. Currently the company operates more the 100 employees in all the branches.
However, the increase in the market pushed the organisation to appoint more people and Jospe
was willing to initiate a recruitment drive. The urgency of the employment led to negotiate with
the current standard of employees. It became a problem for the quality and standard issue of
Trading.com. In this context, the article of Shah, Irani and Sharif (2017) mentioned that the
quality of workforce was a driving factor that paved the way for success. Therefore, it would not