Risks Faced by Trading.com and Recommendations

19
Governance, Ethics and
Sustainability

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Contents
Introduction...............................................................................................................................2
Risks due to Growth...................................................................................................................3
Risks due to organisational culture............................................................................................4
Information handling risks.........................................................................................................5
Conclusion..................................................................................................................................8
Recommendations.....................................................................................................................8
References................................................................................................................................10

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Introduction
Trading.com is medium size start-up founded three years ago, and it offers mentoring and
educational webinar services to people that are interested in investing in the stock market.
The company has hired 100 staff members that handle the operations of its regional offices,
which are situated in Sydney, Melbourne, Brisbane and Adelaide. The aim of this report is to
identify the risks faced by Trading.com and provide recommendations that will assist the
company in addressing those risks. This report will evaluate the risks of Trading.com by
using the risk exposure calculator (REC) which was developed by Robert Simons in which a
score is given to the company on a scale of 1 to 5 on different factors . The highest score is
five on the scale, and the score received in each factor will be added to determine the
current risk exposure of the company (Simons 1999). Lastly, this report will provide
recommendations to address these challenges.

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Risks due to Growth
One of the key risks faced by corporations is the threats which they face due to their growth
which puts the burden on employees to improve their performance in order to meet the
high targets set by the management (Kuntz, Naswall & Malinen 2016, pp. 456-462). The
employees find it difficult to improve their productivity due to high rate of pressure from
the management and it harms the overall growth of the enterprise. Along with management
of pressure of employees, the companies also have to ensure that they carefully implement
business expansion policies since the rapid growth of the company can harm the interest of
employees (Freeman & Siegfried 2015, pp. 35-39). Lack of availability of an adequate
number of employees affected the expansion plans of the company and resulted in creating
challenges for the company to satisfy its customers’ requirements (Taneja, Pryor & Hayek
2016, pp. 44-51). The companies should ensure that they implement policies which are
targeted towards hiring an adequate number of skilled and experienced employees while
expanding their operations to maintain the quality of its services and products (van Zyl,
Mathafena & Ras 2017, pp. 1-19). Lack of availability of experienced employees creates
challenges for the organisations since it reduces their growth opportunities and makes it
difficult for them to ensure that customers receive effective services from the management
(Juhdi, Pawan & Hansaram 2015, pp. 187-201).
 Pressure for performance
There are high targets set for employees in Trading.com who work in a competitive
environment without any support from the regional managers due to which the company
receive a score of 5 points. Drake provided that employees are the key to success of the
company since they deliver quality services to customers and providing them mentoring
services after they join the course; however, employees are paid on commissions which
enforce them to target more customers rather than offering effective services to current
customers. A base salary of $30,000 per annum is given to the employees; however, it is not
enough for them to live an adequate life.
 Rate of expansion