Risk Management: A Case Study on Property Millionaires

The primary aim of the report is to discuss the concept of risk management. The same is undertaken with the help of examining a case study based on the company of Property Millionaires. The new risk assessment tool named Risk Exposure Calculator has been used in the context of assessing the risk faced by the above-mentioned company. The report examines the whereabouts of the company at the initial step. Hereafter, the report is concentrated on investigating the different kinds of risks associated with growth, culture as well as information management connected to Property Millionaires.

Running head: RISK MANAGEMENT
Risk Management
Name of the Student:
Name of the University:
Author Note:

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EXECUTIVE SUMMARY
The primary aim of the report is to discuss the concept of risk management. The same is
undertaken with the help of examining a case study based on the company of Property
Millionaires. The new risk assessment tool named Risk Exposure Calculator has been used in
the context of assessing the risk faced by the above-mentioned company. The report
examines the whereabouts of the company at the initial step. Hereafter, the report is
concentrated on investigating the different kinds of risks associated with growth, culture as
well as information management connected to Property Millionaires. By the examination
done on the different types of risk faced in the three mentioned concepts, the report came to a
finding that the company is at a cautious stage. The results showed that the mentoring and
investment services company of Property Millionaires is at a risk level of 27, which
determines the same be a cautious stage of risk.

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Table of Contents
Introduction................................................................................................................................3
Property Millionaires- Overview...............................................................................................3
Risks faced by the Organisation of Property Millionaires.........................................................4
Risk points due to Growth......................................................................................................4
Risk due to the pressure of growth.....................................................................................4
Risk due to the pressure of expansion................................................................................5
Risk due to the inexperience of employees........................................................................5
Pressure point due to culture..................................................................................................6
Risks due to rewards for entrepreneurial risk-taking.........................................................6
Risks due to executive resistance to bad news...................................................................6
Risk due to internal competition........................................................................................7
Pressure due to information management..............................................................................7
Transaction Complexity and Velocity...............................................................................7
Gaps in diagnostic performance.........................................................................................8
Degree of Decentralised Decision Making........................................................................8
Risk Assessment Result.............................................................................................................8
Conclusion..................................................................................................................................8
References................................................................................................................................10
Appendices...............................................................................................................................12
Appendix 1...........................................................................................................................12

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Introduction
Based on the thought process of Harris (2016), organizational success scenario is
majorly dependent on the condition in which the same manages the synergy of its risk
management. This is because, if the risks associated with the business entity is not managed,
the adverse effects caused by the same can impact the entire positivity working condition of
the organization (Sadgrove 2016). Considering to this condition, the senior level managers, as
well as the leaders of the organization, stands accountable to manage the risks and implement
the necessary changes along with finding the reasons that caused the risk (DeCenzo, Robbins
and Verhulst 2016). Managing the risks is determined to be a complex process, and thus a
risk management tool named Risk Exposure Calculator has been used by several firms at the
current time to determine the level of risks faced by them. Termed to this tool of risk
assessment, the given paper is based on assessing the risk level faced by the company named
Property Millionaires.
Property Millionaires- Overview
Property Millionaires is investigated as a business organization which deals in
offering the ordinary people with a wide range of seminars related to the real estate
investment as well as ongoing services concerned to mentoring. The company works with the
philosophy that any individual has the potential to become a millionaire if the same has the
right form of thought process, educational background as well as a support system. Thus, it
becomes highly pertinent in making a note that this belief and this thought process of the
concerned company has been determined to achieve a recognizable amount of success. As
stated by Kakabadse and Bank (2018), the aspect of growth does not come without
challenges to be faced by the business organization. The same was realized for the company
of Property Millionaires. Moreover, the different feelings about the aspect of growth

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concerning the regional managers of the company and its owner George had also led to the
risks that occurred in the company.
Risks faced by the Organisation of Property Millionaires
A business organization is liable to face several numbers of risks since the day of its
existence (Cleden 2017). This is because of the changing market conditions, the competitors
as well as the plans and processes of the company itself, which makes it fall to face a certain
amount of risks. However, if the business organization effectively handles those risk, the
same can achieve a significant amount of success (Hopkin 2018). This is totally related to the
company of Property Millionaires as the same is determined to achieve a huge amount of
success and growth in its business deals. As stated above in the paper success in a company
does not come without the synergy of facing a certain amount of risks; thus, the different
risks faced by the company of Property Millionaires at the current time are discussed below.
Risk points due to Growth
The business organizations in the modern generation thrive on gaining a profound level of
financial gain in its working transactions (Hood and Nanda 2018). Nevertheless, the fact that
growth brings several kinds of risk with itself is inevitable (Baran 2019). In the context of
this relationship which lies between the variables of growth and risk, the risks associated with
the company of Property Millionaires in the concern of growth point are specified below.
Risk due to the pressure of growth
As examined with the help of the case study that the company into context named Property
Millionaires is recognized to deal with an exceptional amount of growth with concerned to
the demand of the services it offers to the society concerning investment and mentoring. The
case study also brought up a scenario in light that the owner of the company, George, have
been providing its consultants and sales employees with a rigorous amount of target. Also,

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the workers did not have any fixed salary amount paid, but they were paid an amount of
$10,000 per person they brought up into the company as a customer. This strategy of
providing a high amount of commission to the employees undoubtedly brought a significant
change in the company related to its financial growth aspect, but the outcome of the same
turned out to bring the unethical practice of doing the business. The employees carried unfair
means to get the clients to the company. This, in turn, brought a strong amount of risk to the
brand image of the company and concerned to the risk calculator the level of risk lied to the
point of 4 (See Appendix 1).
Risk due to the pressure of expansion
The high demand raising in the company concerning its mentoring and investment
courses services had been recorded to turn to a huge challenge for the company. This
happened because of the limitation to the human resources the company had at its working
end. Thus it was examined that the current number of employees available in the firm were
incapable of meeting the high inflow of demand from the market. Thus, the company had to
recruit new employees on an urgent basis. In this context, it was seen that the company is
hiring inexperienced level of employees just to ground them to meet the demand inflow in the
company. Therefore, the employees failed to provide quality services to the clients, which
bring the company to a high-risk level point of 4 concerned with its future demand (See
Appendix 1).
Risk due to the inexperience of employees
As examined above in the report that the company hired inexperienced employees on
an urgent basis to meet the superficial demand of the customers, this, in turn, brought a
significant amount of risk to the company. The clients of the company complained that they
were not provided with the right kind of service. It is investigated that the employees behaved
well with the clients only at the time of getting the, registered in the firm. After the

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registration, their phone calls were left answered, and the services were neither provided on
time nor in the proposed manner. This brought a risk of 3 points to the company (See
Appendix 1).
Pressure point due to culture
The culture a business organization works into is determined to be the correlative to
the performance level given by the employees connected to the same (Deci, Olafsen and
Ryan 2017). It was stated by Wellin (2016), that the cultural background of a firm brings a
significant and positive change in the working behaviour of the employees if the same is
effective in nature. The negative use of the cultural aspect of any business organization will
lead to the failure of the same in the long run (Inglehart 2018). Same was the case in the
concern of Property Millionaires. The risks, in this concern, connected to the cultural aspect
of Property Millionaires, are explained below.
Risks due to rewards for entrepreneurial risk-taking
It was analyzed that the owner of the company had created a strong level of
competition in the internal working environment of Property Millionaire. This brought into
light the factor that the owner has a trait of high entrepreneurial risk-taking capability. The
work culture of the company where the employees were predominantly judged based on their
sales target have encouraged the employees to carry the wrong means of bringing the high
number of clients to the company. The unethical working culture of treating the clients in a
negative and dissatisfied manner after getting them registered in the company brings a risk
level of 3 to the same (See Appendix 1).
Risks due to executive resistance to bad news
As opined by Kaufmann (2017), the future of a business enterprise is highly
dependent on the manner the same reacts to bad news the same has received. If the firm is
able to mitigate the adverse effects caused by the bad news, it succeeds and vice-versa

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(Rothenberg, Hull and Tang 2017). Therefore, concerned to the company of Property
Millionaires, it was seen that the employees had a profound level of resistance to the risk;
however, the effects of the same were not mitigated by the employees. The consultants, as
well as the regional managers, resisted the bad news of failure being received in providing
proper services to the clients reach to the owner, but, in turn, were not able to mitigate the
effects of gaining a bad brand image for the company. This brings a risk of level 2 to the
company (See Appendix 1).
Risk due to internal competition
As examined above in the paper that the owner of the company has encouraged a
profound level of internal competition inside the workplace of Property Millionaires, this
competition had paved a path for the employees and consultants to carry inauthentic means of
selling the courses. This was done in the concern of gaining high amount of commission.
Moreover, the workers being solely judged on the number of clients they brought to the
company, the unfair means increased in the concern that the employees could stand ahead of
each other. This was spoiling the brand image of the company, and this brought a risk of level
3 to the firm (See Appendix 1).
Pressure due to information management
As opined by Ansoff et al. (2018), the concept of information management is
important for an effective business firm in the concern that its activities are managed in a
significant manner. If the same is not managed effectively, the company is liable to face
many risks. Thus, the risks connected to the company of Property Millionaires are specified
below.
Transaction Complexity and Velocity
With the help of the case study, it was analyzed that Property Millionaires attracts its
customer base with the help of providing free seminars concerning the investment and

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mentoring services. However, it was also noted that the company has no way stipulated any
course of conduct for the services. It was also examined that the consultants did not provide
the needed services to the clients after getting them registered in the firm. This brought the
company to a risk level of 2 (See Appendix 1).
Gaps in diagnostic performance
The performance level of the employees in a business organization should be
measured in the context of the same being ethical as well as productive in nature (Guest
2017). However, the performance level at Property Millionaires is measured in the context of
the number of clients brought to the firm on a monthly basis. This turned to bring a ruthless
work culture in the firm, taking it up to a risk level of 3 (See Appendix 1).
Degree of Decentralised Decision Making
Property Millionaires works with the decentralized concept of carrying a business
transaction, and the same is evident from the fact that the consultants of the company had full
liberty to deal and get the clients into the business the way they wished to. Not only this, but
the services provided to the clients after they were registered in the company was also solely
dependent upon the consultants. Thus, the employees became focused only on earning
commission through inauthentic means of registering the clients into the business and did not
provide the required services to the clients after the registration. This brought a significant
risk of 3 points to the company (See Appendix 1).
Risk Assessment Result
The above-presented report sums up to a score of 27 that indicates that the company is
at a higher point of risk. This high score in the risk assessment simple means that the
company is at a cautious stage were the same needs to take measures that would mitigate the
current risks faced by the same.

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Conclusion
Hence, in the concern of bringing to a vital conclusion, it can be stated that the
synergy of risk impacting the working transactions of a business is an inevitable one.
However, the manner the same is maintained is what defines the capability of the
organization. In the present business world, a company should not only focus on making its
financial base strong by earning a high amount of profit but should also focus on the other
relevant parts of the business that would help the same to gain a better level of brand image
and consumer loyalty. As evident from the working structure and culture of Property
Millionaires that the high focus on making financial gains and neglecting the other facts of
the business led the company to stand at a cautious stage of risk and the same needs to be
mitigated soon.

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References
Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R., 2018. Implanting
strategic management. Springer.
Baran, P.A., 2019. Political Econ of Growth. NYU Press.
Cleden, D., 2017. Managing project uncertainty. Routledge.
DeCenzo, D.A., Robbins, S.P. and Verhulst, S.L., 2016. Fundamentals of Human Resource
Management, Binder Ready Version. John Wiley & Sons.
Deci, E.L., Olafsen, A.H. and Ryan, R.M., 2017. Self-determination theory in work
organizations: The state of the science. Annual Review of Organizational Psychology and
Organizational Behavior, 4, pp.19-43.
Guest, D.E., 2017. Human resource management and employee well‐being: Towards a new
analytic framework. Human Resource Management Journal, 27(1), pp.22-38.
Harris, A., 2016. Burnout & work disengagement implication of supervisor support in project
success. Journal of Business Strategies, 10(2), p.37.
Hood, C. and Nanda, A., 2018. What could work for future workplaces, beyond
working?. Corporate Real Estate Journal, 7(4), pp.352-368.
Hopkin, P., 2018. Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers.
Inglehart, R., 2018. Culture shift in advanced industrial society. Princeton University Press.
Kakabadse, A. and Bank, J., 2018. Working in organizations. Routledge.
Kaufmann, W., 2017. Going by the book: The problem of regulatory unreasonableness.
Routledge.

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Rothenberg, S., Hull, C.E. and Tang, Z., 2017. The impact of human resource management
on corporate social performance strengths and concerns. Business & Society, 56(3), pp.391-
418.
Sadgrove, K., 2016. The complete guide to business risk management. Routledge.
Wellin, M., 2016. Managing the psychological contract: Using the personal deal to increase
business performance. Routledge.

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Appendices
Appendix 1