logo

Risk Assessment in Trading

   

Added on  2020-12-29

12 Pages2809 Words179 Views
 | 
 | 
 | 
Risk Assessment
Risk Assessment in Trading_1

EXECUTIVE SUMMARY The present report summarized various risk elements which can affect Trading.comnegatively. It discussed that risk exposure calculator is an effective tool which can be used orassessing various pressure point related to growth, culture and information management systemin a company. In context to this the selected company was analyzed and scored to determinelevel of risk Trading.com has developed. The report identified that riskiest area for citedcompany is its culture. In order to avoid and eliminate any kind of harm to health of the businessit is very essential to manage and control this pressure point along with the other risk elementssuch as pressure of growth and information management.
Risk Assessment in Trading_2

TABLE OF CONTENTSEXECUTIVE SUMMARY ............................................................................................................2INTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1RISK EXPOSURE CALCULATOR ..............................................................................................1RISK EXPOSURE OF TRADING.COM.......................................................................................2A. Pressure points due to growth ...........................................................................................2B. Pressure points due to culture............................................................................................3C. Pressure points due to information management ..............................................................3RESULTS OF RISK ASSESSMENT ............................................................................................5CONCLUSION ...............................................................................................................................6RECOMMENDATION...................................................................................................................6REFERENCES................................................................................................................................8
Risk Assessment in Trading_3

INTRODUCTIONRisk is a major element that affects each and every type of business or organisation. It isimportant to identify the risk to manage or control them so that it cannot affect the businessnegatively. The managers of a company need to analyse risks and develop effective strategies toovercome any threats or danger for the organisation (Wright, 2018). This report is in context toTrading.com, a company that offers share investment courses and mentoring services to ordinarypeople. The cited organisation was established three years ago by successful share trader Mr.Jospe Drake. He developed his company into a medium sized business by employing more than100 employees for the offices in Sydney, Melbourne, Adelaide and Brisbane. This report willassess the risk in Trading.com by using risk exposure calculator in order to identity the varioushazards involved in the business and its activities. MAIN BODYRISK EXPOSURE CALCULATOR The risk exposure calculator is a tool that is used for gauging an organization's likelihoodof being amazed by breakdowns or errors that may negatively affect or become a threat for thecompany's strategy or franchise. The calculator can be used easily; it consists of various keys orelements which needs to be rated from 1 to 5. Total score at the end identify the risk level acompany can face (Petit and Lewis, 2017). According to the total score of this calculator thereare three categories in which a level of risk for company can be determined as below - 1.The safety zone (Score 9 to 20) – The organizations that have a low level of risk areprobably safe from unexpected events or errors that can negatively influence health of thecompany or business comes under this zone. Although, it is essential to analyze reason oflow risk for the business to maintain effective functioning of the firm.2.The caution zone (Score 21 to 34) – Most of the businesses falls in this category which isalso referred as middle zone. Managers of a company needs to be alert for high scores inany two out of the three risk attributes. For example – if an organization has a high scoreon both culture and growth but the total score is below 35, there is still a high risk andreason to consider for the business (Epstein, 2018).3.The Danger zone (Score 35 to 45) – It is highest level of risk assessment, if a companyfalls under this zone it is time to take fast actions to protect business. There are various1
Risk Assessment in Trading_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Risks Faced by Trading.com and Recommendations
|12
|2881
|135

Governance Ethics and Sustainability
|14
|3247
|74

Risk Assessment Report: Trading.Com Case
|16
|3643
|337

Risk Assessment of Trading.com
|8
|2708
|77

Risk Exposure Calculator for Trading.com
|13
|2993
|437

Risk Assessment of Trading.Com
|12
|3244
|297