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

Running head: GOVERNANCE, ETHICS AND SUSTAINABILITY
Governance, Ethics and Sustainability
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1GOVERNANCE, ETHICS AND SUSTAINABILITY
Executive Summery
The purpose of this report is to analyze the factors that affect risk assessment and the
concepts related to it in an organization. Trading.com has been taken as an example so that
observations can be made on the organization and an assessment of the factors posing risk for
the organization can be conducted using the Risk Exposure Calculator tool. in the report, the
aspects of risks concerned with growth, culture and information depending on the
organization has been evaluated. The discussion shows that the factor of growth poses high
risk for the organization, the factors like expansion and information shows risks that are
moderate in scale for the organization. Finally, it is concluded through the assessment that
Trading.com is positioned in the medium risk category. In order to mitigate the risks posed
by these factors they need to come up with an effective strategy and apply it to the
organization. Growth and success of an organization largely depends on how efficiently the
organization identifies these risks and reduces them.

2GOVERNANCE, ETHICS AND SUSTAINABILITY
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Trading.com...........................................................................................................................3
The Risks Faced by Trading.com...........................................................................................4
Risk points due to growth..................................................................................................4
Pressure Points Due to Culture..........................................................................................7
Pressure Points Due to Information Management.............................................................8
Results of the Assessment......................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11
Appendix 1...............................................................................................................................13

3GOVERNANCE, ETHICS AND SUSTAINABILITY
Introduction
Risk management can be defined as process where risks of an organization are
systematically identified and assessed and actions are taken for the protection of the
organization (Lam 2014). It is based on the possibility of a future risk occurrence where both
the chances of potential loss and gain are there. Sometimes, it might happen that a. enterprise
has gained substantially by taking risks. The need of risk management thus lies in the fact
that organizations must evaluate the potential losses and gains, decide whether the risk is
worth taking, and avoid mistakes that might become too expensive for the
organization(Cardona 2013). Risk management is ideally a measure for prevention rather
than reaction. Most organizations who have successfully managed risks have done so when
their performance was steady and market growth was profitable so that they could ensure
sustainable profitability (Hopkin 2018). To facilitate the assessment of risk and manage them
properly a tool known as “Risk Exposure Calculator” has gained popularity using which the
extent of risk each factor poses for an organization can be evaluated (McNeil, Frey and
Embrechts 2015). In this report, Trading.com organization has been taken and its risk
situations has been analyzed. Based on the score of each risk factor in Risk Exposure
Calculator the potentiality of those risks has been discussed. Moreover, the implications of
the risk scores and the solutions as well as recommendation that the organization might adopt
has been also provided.
Discussion
Trading.com
Trading.com is an organization concerned with courses related to share investment
and consultation on the same aspects. Jospe Drake a successful share trader is the owner of