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

Running Head: GOVERNANCE, ETHICS AND SUSTAINABILITY
GOVERNANCE, ETHICS AND SUSTAINABILITY
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1GOVERNANCE, ETHICS AND SUSTAINABILITY
Table of Contents
Introduction......................................................................................................................................2
A. Pressure points due to growth..................................................................................................2
Pressure for performance.............................................................................................................2
Rate of expansion........................................................................................................................3
Inexperience of key employees...................................................................................................4
B. Pressure points due to culture...................................................................................................5
Reward for entrepreneurial risk...................................................................................................5
Executive resistance to bad news................................................................................................5
Level of internal competition.......................................................................................................6
C. Pressure points due to information management.....................................................................7
Transaction complexity and velocity...........................................................................................7
Gaps in diagnostic performance..................................................................................................7
Degree of decentralised decision making....................................................................................8
Conclusion.......................................................................................................................................8
Reference.......................................................................................................................................10
Appendix........................................................................................................................................12

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Introduction
Risk analysis is part and parcel of the organisational decision making and facilitates a
strategic advantage for the business organisations by analysing the risks before it occurs.
According to Carvalho and Rabechini Junior (2015, p. 329) risk analysis is the process of
identifying and evaluating the potential issues that have adverse impact on the organisational
development. Therefore, it is important for the corporate entities to identify and resolve the risks
as soon as possible. In this regard, Trading.com, a share investment and mentoring service
company in Australia has been taken as the case study. The organisation is well established in
the Australian market and expanded its branches in Sydney, Melbourne, Brisbane and Adelaide.
The organisation is medium sized and currently faces huge growth in the market. However, the
company is suffering with a series of challenges in terms of organisational growth, cultural
issues and information management system. Henceforth, this report is going to discuss the risks
that Trading.com is facing by the use of a risk exposure calculator.
A. Pressure points due to growth
Pressure for performance
As per the research of Smith and Bititci (2017, p. 1210) it can be stated that pressure on
the employees for more productivity is considered to be a major factor for the business
organisations in order to bring more profitability. However, it is important to put focus on the
employees’ abilities and skills. In case of Trading.com the company is focusing on the
aggressive sales growth. Subsequently, it is important for the existing workforce to perform
beyond their natural ability. The senior management also puts enormous pressure on the

3GOVERNANCE, ETHICS AND SUSTAINABILITY
employees by increasing their performance. In this context, implementing the special bonuses
and incentives prove the interest of the management to case enough pressure on the employees.
In addition to this, the size of Trading.com is also an important factor to focus on. The company
is belonged to a medium sized organisation and restriction on the employee numbers is evident
for the company. However, the increase in the market demand creates huge problem for
Trading.com to cope with the intense demand. Currently, the company has more than 100
employees in all four branches but it is not adequate to pace with the market trend. The senior
management shares the interests of recruiting new people. Until the new employees are come
into action the existing consultants will feel robust pressure. Therefore, the risk exposure
calculator marks this risk 4.
Rate of expansion
The senior management of Trading.com is not willing right now to expand its business
physically. In other words, it can be stated that the senior management has no plan right now to
set up new branches in Australia. However, it can be seen that the company is highly motivated
to expand its sales growth robustly. In this context, Crane (2017, p. 135) opined that the
expansion of an organisation in terms of both physical or sales can be generated through
adequate infrastructure specifically human resources. For Trading.com the organisation has
limited workforce to expand its business. Moreover, the company is bound to restrict its
employee strengths due to organisational size. It is impossible for Trading.com to expand its
business havoc and the senior management acknowledges this limitation. As a result of that the
management only focuses on the growth of the sales by recruiting more people. From the
research of Samuel et al. (2017, p. 92) it can be derived that identifying the limitations and
weaknesses are considered to be the major aspect for he business organisations so that the