RISK ASSESSMENT REPORT.

Running head: RISK ASSESSMENT REPORT
RISK ASSESSMENT REPORT: A CASE STUDY OF TRADING.COM
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1RISK ASSESSMENT REPORT
Table of Contents
Introduction................................................................................................................................2
Overview of Trading.com..........................................................................................................2
Risk Assessment of Trading.com...............................................................................................3
Pressure points due to growth................................................................................................3
Pressure for performance...................................................................................................3
Rate of expansion...............................................................................................................4
Inexperience of key employees..........................................................................................4
Pressure points due to culture................................................................................................5
Rewards for entrepreneurial risk taking.............................................................................5
Executive resistance to bad news.......................................................................................5
Level of internal competition.............................................................................................6
Pressure points due to information management...................................................................6
Transaction complexity and velocity.................................................................................6
Gaps in diagnostic performance.........................................................................................7
Degree of decentralised decision making..........................................................................7
Risk Assessment Result.............................................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9
Appendix..................................................................................................................................11

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Introduction
As opined by Hopkin (2018), the business enterprises because of their business
activities or operations in the business markets commonly face different kinds of risks which
adversely affect their business prospects. Choi, Chan and Yue (2016) are of the viewpoint
that risk can be defined as the situation in which a business enterprise stands to lose
something of value, be its customer base, profitability, brand image and others on the score of
unfavourable situations or its business activities. The resultant effect of this is that the
different business enterprises are increasingly resorting to the usage of the construct of risk
assessment for the analysis of the different business risks that they commonly face so as to
devise the right kind of risk mitigation strategies (Aven 2016). In this regard, the “Risk
Exposure Calculator” is one of the most important tools which is being used by the different
business enterprises for the effective identification as well as the analysis of the various risks
that they face (Simons 1999). This report intends to undertake a risk assessment of the
enterprise Trading.com through the usage of the “Risk Exposure Calculator”.
Overview of Trading.com
The business enterprise Trading.com specialises in providing different kinds of
investment courses and mentoring services to its customers which are intended to help its
clients to retire at an earlier age by way of saving adequate amount of money. In this
connection, it needs to be said that the philosophy of the concerned enterprise is the idea that
everyone can become a success investor through the usage of the right or appropriate
mindset, education and support. More importantly, it had been seen that the services offered
by the concerned enterprise had been highly appreciated by the clients and this in turn had
forced the enterprise to undertake expansion for which Jospe Drake, its owner is really

3RISK ASSESSMENT REPORT
optimistic. However, the majority of the enterprise’s employees are sceptical regarding the
same because of the risks which it entails along with itself.
Risk Assessment of Trading.com
McNeil, Frey and Embrechts (2015) are of the viewpoint that the different kinds of
business risks that the enterprises face if mitigated in an effective manner can really serve as
growth opportunities for the concerned enterprises. In the particular context of Trading.com it
can be said that the different growth risks that it is presently serve as growth opportunity,
provided they are mitigated in an effective manner and for this the identification the risks
faced by it is important. The majority of the risks faced by the concerned enterprise can be
categorised under three broad headings-
 Pressure points due to growth
 Pressure points due to culture and
 Pressure points due to information management
Pressure points due to growth
Pressure for performance
Soomro, Shah and Ahmed (2016) have articulated the viewpoint that the business
enterprises in order to attain a higher level of growth often end up focusing on the attribute of
quantity instead of quality and this in turn can adversely affect the business prospects of the
concerned enterprise in the longer run. In the particular context of the enterprise Trading.com
it had been seen that the employees are given very aggressive monthly targets and they are
not being provided fixed remuneration. As a matter of fact, they are being paid on a
commission basis depending on the number of sales or clients they are being able to bring
within the fold of the concerned enterprise. This in turn had shifted the focus of the
employees as well as the enterprise from the aspect of quality to quantity which in turn had