Governance, Ethics, and Sustainability Risks

0
Governance, Ethics, and Sustainability

1
Table of Contents
Introduction....................................................................................................................2
Risks due to Growth.......................................................................................................3
Risks due to Organisational Culture...............................................................................4
Information Handling Risks...........................................................................................6
Conclusion......................................................................................................................8
Recommendations..........................................................................................................8
References....................................................................................................................10

2
Introduction
Property Millionaires conducts seminars to teach their clients regarding how to invest
in real estate market. The corporation also provides on-going mentoring services to its
clients. The corporation attracts customers through its consultants who also take
seminars with them and team clients how they can invest in real estate property to
become millionaires. The purpose of this report is to evaluate the case of Property
Millionaires to identify the key internal management challenges faced by the company
which is likely to hinder its performance in the future. Robert Simons (1999)
developed the risk assessment calculator which is a tool that can assist corporations in
identifying their key internal weaknesses which hinders their performance. Evaluation
of this tool assists the management in developing relevant strategies which can assist
them in sustain the growth of the company even in adverse market conditions. This
tool has categorised the internal factors which affect the operations of a company into
three divisions which include growth, culture and information system. In this tool,
points are given to companies on a scale of 1 to 5 where 5 is the highest point, and 1 is
the lowest. Organisations which score between 9 and 20 are considered as safe. The
score between 21 and 34 denotes that the corporations are in caution zone (Merson,
2016). Lastly, a score above 35 provides that the company is in danger zone.
Following is the Risk Assessment Report of Property Millionaires by using the risk
assessment calculator.

3
Risks due to Growth
Performance pressure
In fast-growing companies, there is substantial pressure on the management and
employees to keep up with the growth of the company (Cappelli and Tavis, 2016).
Employees operate under intense pressure to meet the deadlines or targets. The
management often sets ambitious sales and profits goals which become difficult for
the employees to achieve which leads to hindering the performance of the company
(Groen, Wouters and Wilderom, 2012). Property Millionaires is growing rapidly due
to effective performance of its employees, and the management is setting high targets
without consulting with employees. George Kirzner provides that the performance of
staff members is accountable for delivering strong financial performance in the
company. It creates pressure on the management and employees to meet the set targets
within the given deadline without which the company will find it difficult to sustain its
growth in the market. Therefore, the company will receive 5 out of 5 points for the
pressure of performance.
Expansion rate
The rate of expansion of a company has both positive and negative impact on its
operations. Although a high rate of expansion assists the corporation in rapidly
growing its operations and increasing its profitability; however, it also leads to
overload which puts pressure on companies (Banalieva and Dhanaraj, 2013). Due to
high work pressure, the employees are likely to sacrifice their quality in order to meet
the set targets in the business. Property Millionaires has rapidly expanded its
operations in different locations in Australia and hired over 100 employees. However,
George provided that one of the key challenges faced by the company is that it is
operating faster than its ability to hire and induct new staff members. Since the
resources of the company are not able to meet the pressure of expansion, it received 5
out of 5 points.
Inexperience of employees