Risk Assessment Report for Property Millionaires

Running Head: GOVERNANCE, ETHICS AND SUSTAINABILITY
GOVERNANCE, ETHICS AND SUSTAINABILITY
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1GOVERNANCE, ETHICS AND SUSTAINABILITY
Table of Contents
Introduction......................................................................................................................................2
Risk assessment report.....................................................................................................................2
A. Pressure points due to growth.................................................................................................2
i) Pressure for performance.....................................................................................................2
ii) Rate of expansion................................................................................................................3
iii) Inexperience of key employees..........................................................................................4
B. Pressure points due to culture.................................................................................................4
i) Reward for entrepreneurial risk............................................................................................4
ii) Executive resistance to bad news........................................................................................5
iii) Level of internal competition.............................................................................................5
C. Pressure points due to information management....................................................................6
i) Transaction complexity and velocity...................................................................................6
ii) Gaps in diagnostic performance..........................................................................................7
iii) Degree of decentralised decision making..........................................................................7
Conclusion.......................................................................................................................................8
Reference.........................................................................................................................................9
Appendix........................................................................................................................................12

2GOVERNANCE, ETHICS AND SUSTAINABILITY
Introduction
For the current international business, it is important to make decisions that are
sometimes beyond the capabilities of the companies. The purpose is to get strategic advantage in
the competitive market. However, lack of farsightedness and dearth of understanding of the
consequences make it a hefty decision for the international corporations (Fosić, Trusić and Šebalj
2017). This volatility in the international business decision making process subsequently comes
up with new perception where the role of the risk analysis becomes an important practice.
Therefore, this report is going to conduct a risk analysis in Property Millionaires, an Australian
real estate mentoring service. For a better understanding, a risk calculator is also used in this
discussion so that the evaluations will be proper and authentic.
Risk assessment report
A. Pressure points due to growth
i) Pressure for performance
Performance is considered to be one of the important aspect for the success of the
business companies. As per the research of Zhan et al. (2018) it can be stated that immense
pressure on the employees can have a detrimental impact on the performance of the employees.
On the contrary, Dubey, Gunasekaran and Chakrabarty (2015) opined that in the competitive
market it is essential for the international business organisations to put healthy pressure on the
employees so that they will contribute intricately to the organisational profitability. Therefore, it
depends on the motive of the organisation that forced its workforce to work in pressure. The case
of Property Millionaires is subjected to the motive of aggressive sales growth within the

3GOVERNANCE, ETHICS AND SUSTAINABILITY
organisation. As a result of that immense pressure has been vested on the workforce and forced
them to do job way beyond their abilities. The management also ready to provide commissions
or special bonuses to the employees to prove that the management is concerned about them and
providing them financial benefits accordingly. However, there are some serious issues that
Property Millionaires is facing. First of all, the senior management imposed an aggressive sales
target without consulting with the employees or the regional sales managers about the viability
and feasibility of the target. As a result of that it seemed a serious threat for the employees to
meet such high target. It also resulted to create a highly competitive environment for the
consultants where they are pitted each other for meeting the target. Henceforth, in the risk
calculator scored 4 for the intensity of the performance risks of the consultants.
ii) Rate of expansion
Rate of expansion in Property Millionaires is increasing at a rapid pace from the last year.
Bromley and Meyer (2017) opined that rate of expansion is a very significant aspect that proved
the success of the company in the competitive world. Nevertheless, based on the research of
CEcD (2017) it can be argued that the rate of expansion has to be aligned with the ability of the
organisation. In other words, if an organisation started to expand itself beyond the ability then it
will be critical to manage the market or the quality of service or product. In respect to this,
Property Millionaires witnessed a dramatic increase in the seminar sales last year. It boosted the
company to expand further. Therefore, the organisation intends to prioritise its requirements
properly. In response to this, recruiting new employees is considered to be the first step for
Property Millionaires to prepare for a solid expansion. Apart from that robust increase in the
sales is also identified as a pragmatic step for Property Millionaires to facilitate good expansion
rate. Therefore, the risk is seemed to be less and the risk calculator marked it 1.