Risk Assessment Report for Trading.com

Running Head: RISK ASSESSMENT REPORT
Risk Assessment Report
Name of the Student
Name of the University
Author Note

1RISK ASSESSMENT REPORT
Executive Summary
Trading.com is a renowned company that does its business in the area of selling share
investment courses as well as the provision of ongoing mentoring services. The company has
been experiencing a rapid rate of expansion of late and the owner of the company, Jospe
Drake is simply ecstatic about the fantastic financial performance being rendered by the
company’s employees. Yet there is a downside to such high business growth and expansion
as well, primarily in the form of risk to future business growth. This report uses a risk
exposure calculator to carry out a risk assessment for the company to locate the different
pressure points that are faced by the company due to growth, the pressure points in the
company due to culture, and the pressure points that are there owing to information
management.

2RISK ASSESSMENT REPORT
Table of Contents
Introduction................................................................................................................................3
1. Pressure Points due to Growth............................................................................................4
1.1. Pressure for performance.............................................................................................4
1.2. Rate of Expansion........................................................................................................5
1.3. Inexperience of Key Employees..................................................................................5
2. Pressure Points due to Culture............................................................................................6
2.1. Rewards for Entrepreneurial Risk Taking...................................................................6
2.2. Executive Resistance to Bad News.............................................................................7
2.3. Level of Internal Competition.....................................................................................8
3. Pressure Points due to Information Management...............................................................9
3.1. Transaction Complexity and Velocity.........................................................................9
3.2. Gaps in Diagnostic Performance...............................................................................10
3.3. Degree of De-centralized Decision Making..............................................................10
References................................................................................................................................12

3RISK ASSESSMENT REPORT
Introduction
Trading.com is a well-known company that provides people with share investment
courses as well as ongoing mentoring services. It believes firmly in the philosophy that just
about anybody and everybody is capable of becoming a share investor but only if they have
the right frame of mind, support as well as education in order to do so. Trading.com came
into existence around three years ago, having been established by a man by the name of Jospe
Drake. The company today maybe regarded as a business enterprise of medium size, with
around a hundred staff offices operating in prominent Australian cities like Brisbane,
Adelaide, Melbourne and Sydney. The sales for the company witnessed a dramatic increase
about a year ago, and its operations today are expanding faster than ever, largely due to the
ability of the company to hire as well as induct new staff. The company’s founder Jospe is
very proud about this and gives full credit to the company staff for their fantastic capacity to
deliver a strong financial performance. The regional managers of the company however are
not entirely excited unlike Jospe about the sudden surge that can be witnessed with regard to
the company’s financial growth. Since the company is in need of more and more consultants
to keep its business going, employment standards have had to be lowered and often many
new people are hired by the company who do not have much or no experience in sales and
marketing. This report makes use of a risk exposure calculator to identify the different
pressure points that are faced by the company due to growth, the pressure points in the
company due to culture, and the pressure points that are there owing to information
management.