Risk Assessment for Property Millionaires: A Case Study of Expansion Pressures

MBA402 ASSESSMENT 2

Contents
Introduction......................................................................................................................................3
A. Pressure points due to growth.....................................................................................................4
i) Pressure for performance..........................................................................................................4
ii) Rate of Expansion....................................................................................................................4
iii) The inexperience of Key Employees......................................................................................4
B. Pressure Points Due to Culture...................................................................................................5
i) Rewards for Entrepreneurial Risk-Taking................................................................................5
ii) Executive resistance to bad news............................................................................................5
iii) Level of Internal Competition................................................................................................5
Pressure points due to information management.............................................................................6
i) Transaction complexity and velocity........................................................................................6
ii) Gaps in diagnostic performance..............................................................................................6
iii) Degree of decentralised decision making...............................................................................6
Risk Exposure Calculator................................................................................................................8
Conclusion.......................................................................................................................................9

Introduction
Whenever an organisation is expanding itself there are bound to be risks that it will face. Such a
problem has occurred with the organisation known as Property Millionaires. They have not been
able to properly make decisions while expansion took place due to which they have been faced
with pressure from different angles. The risk calculator will be made so that each of the risks that
are arising due to pressure can be calculated and analysed thoroughly.

A. Pressure points due to growth
When any organisation is going through growth there are a lot of aspects that will increase the
amount of pressure on the personnel. This can be seen in the case of Property Millionaires where
the organisation saw huge exponential growth but was not ready to handle it at all. Due to this,
there was pressure which was put on a performance, rate of expansion and having inexperienced
key personnel. These pressure points had a very big impact on the work which is being done in
the organisation. Property Millionaires did not have the resources that needed to handle such a
change (Boserup, 2014).
i) Pressure for performance
The organisation, Property Millionaires, had started to hire employees at a quick rate so that they
could handle the expansion. If the organisation is going to expand then there would be more
employees that would be required to attend the clients. The employees were selected by dropping
the standards for recruitment and selection. Also, it was seen that pressure was also put on the
recruits for having them to deliver a high performance. There would be inexperienced employees
having low skills which would be expected to perform at a high rate. Due to such pressure, there
would be risks that would arise hence creating more pressure among the organisation. Even
though such pressure causes low performance but it does helps increase the level of innovation.
Innovation would help in easing the level of pressure as innovative solutions would help in
handling the workload (Krendl et. al. 2012).
ii) Rate of Expansion
Property Millionaire did not have any planning sorted out for its expansion as it was
spontaneous. There needs to be proper planning because there will be an addition of new
resources that would need to be used in an effective manner or else there would be no proper
management. This resulted in low quality of the services which were offered by the organisation
as a decrease in the hiring standards would mean that low skilled employees will also be hired.
This has also put pressure on them to increase the level of quality in their production lines. Due
to this the burden of providing best work would be raised higher. New employees would not
understand their job roles in an effective manner hence providing low results. There will be
many mistakes that would be done by the employees due to this fast rate of expansion. This rate