Governance, Ethics and Sustainability - Risk Assessment of Property Millionaires

Running head: GOVERNANCE, ETHICS AND SUSTAINABILITY
GOVERNANCE, ETHICS AND SUSTAINABILITY
Name of the Student
Name of the University
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1GOVERNANCE, ETHICS AND SUSTAINABILITY
Executive summary
Success for any organization is determined as the situation, which generally is associated with
excessive risky situation. New organizations generally are not been able to understand the
pressure and risk associated with success and therefore they face risky situations more than older
organizations. This assignment discussed about a risk assessment of a company ‘Property
Millionaires’. The risk assessment was done based on a risk assessment calculator and the ratings
were provided on the scale of 5. Finally, a cumulating score was assigned to it and depending on
which the risky situation for the organization was determined. The reading of the risk assessment
calculator is attached in the appendix section of the assignment.

2GOVERNANCE, ETHICS AND SUSTAINABILITY
Table of Contents
Introduction..........................................................................................................................4
The case study......................................................................................................................4
Risk assessment of the company.........................................................................................5
Pressure point due to growth...........................................................................................5
Pressure for performance.............................................................................................5
Rate of expansion........................................................................................................5
Inexperience of key employees...................................................................................6
Pressure point due to culture............................................................................................6
Rewarding entrepreneurial risk takers.........................................................................6
Executive resistance to bad news................................................................................7
Level of internal competition.......................................................................................7
Pressure point due to informal management...................................................................7
Transaction complexity and velocity...........................................................................7
Gap in diagnostic performances..................................................................................8
Degree of decentralized decision-making...................................................................8
Conclusion...........................................................................................................................9
References..........................................................................................................................10
Appendix............................................................................................................................12

3GOVERNANCE, ETHICS AND SUSTAINABILITY
Introduction
The best phase for any organization is related to its success, as it brings several
opportunities for the organization and its employees. The employees feel that their future is safe,
as the company profile expands and they start receiving revised remunerations. On the other
hand, the company also started to expand its workforce and implement newer systems to
maintain the new market reputation (Sadgrove 2016). However, such success generally brings
several threats or risks related to it, which has the capability to shatter the company’s structure
and the market reputation. The new and young companies are unable to identify these risky
situations and therefore the rate of such organization being affected to risks is more than the
experienced organizations. The risk generally involved external and internal factors within
which, internal risks hampers the organization adversely (Reason 2016). This assignment is
going to discuss such risky situations for an investment seminar company Property Millionaires,
and different aspects of risk associated with it will be discussed. Further, the total calculated risk
would be provided in the appendix section of the assignment with the help of risk assessment
calculator.
The case study
A successful real estate developer George Kirzner developed the company Property
Millionaire three years ago. The company used to provide detailed seminar and mentoring to
people who wanted to invest in real estates. The company is a mid-scale sales firm having offices
in Sydney, Melbourne, Brisbane and Adelaide. The risk for company started after the company
becomes successful one year ago as the need of expansion marked the urge to employ more