Governance Ethics and Sustainability: Risk Assessment of Trading.com

Running head: GOVERNANCE ETHICS AND SUSTAINABILITY
Governance Ethics and Sustainability
Name of the Student:
Name of the University:
Author’s Note:

1GOVERNANCE ETHICS AND SUSTAINABLITY
Executive Summary
This report discusses about the concept of risk assessment through the use of the case study
of Trading.com. For the analysis of the risks that the company is facing currently the tool of
risk exposure calculator has been used. The report begins by providing an overview of the
company Trading.com. The report next categorizes the diverse risks faced by the company
into three sections namely, risks points due to growth, culture and information. In the section
of risk points due to expansion, the report discusses about the three major risks that the
company is facing, namely, risk due to growth, expansion and inexperience of the employees.
In the section of risk points due to culture, the report discusses about the risks due to rewards
for entrepreneurial risk taking, risks due to executive resistance to bad news and risk due to
internal completion. Finally, for the risk points due to information management, the report
discuses about the risks due to transaction complexity and velocity, gaps in diagnostic
performance and degree of decentralized decision making. The report finally concludes with
a discussion of the results of the risk assessment which shows that the company falls in the
category of the caution zone. This means that the company needs to mitigate the risks that it
is facing currently facing for its steady growth.

2GOVERNANCE ETHICS AND SUSTAINABLITY
Table of Contents
Introduction................................................................................................................................3
Trading.com...............................................................................................................................3
Trading.com and the risks faced by it........................................................................................4
Risks points due to growth.....................................................................................................4
Risk due to pressure for growth.........................................................................................5
Risk due to pressure for expansion....................................................................................5
Risk due to inexperience of employees..............................................................................6
Pressure points due to culture................................................................................................6
Risks due to rewards for entrepreneurial risk taking.........................................................7
Risks due to executive resistance to bad news...................................................................7
Risks due to level of internal competition..........................................................................8
Pressure points due to information management...................................................................8
Transaction complexity and velocity.................................................................................8
Gaps in diagnostic performance.........................................................................................9
Degree of decentralized decision making..........................................................................9
Results of the assessment...........................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11
Appendix 1...............................................................................................................................13

3GOVERNANCE ETHICS AND SUSTAINABLITY
Introduction
The success or the failure of an organization depends to a large extent on the manner
in which it is being able to mitigate the adverse effects of the diverse risks that it is faces
(Ward 2016). Furthermore, the managers or the leaders associated with an organization need
to identify the root cause of the risks that they face in the initial stages of its emergence when
it is possible for them to mitigate its adverse effects (Li 2014). In this regard, the concept of
risk assessment becomes very significant which not only enables a particular organization to
identify the risks that it faces but also to devise effective mitigation strategies for the same
(Haimes 2015). The “Risk Exposure Calculator”, in the recent times, has emerged as one of
the most important risk assessment tools which are being used by the various organizations
for the identification of the risks that they face (Simons 1999). This report will discuss the
risks that the company Trading.com is facing currently on the basis of the score of the
company on Risk Exposure Calculator.
Trading.com
The company Trading.com provides offers its customers investment courses and other
kinds of mentoring services. The mantra of the company under discussion here is the fact that
any individual is capable of becoming a successful investor provided they have the right kind
of mind set, support as well as education. It is pertinent to note that following this particular
mind set the company offers investment facilities which it claims can help the customers to
secure a savings and thereby retire at a much earlier age. Furthermore, in the recent times,
following this particular mind set the concerned company has been able to gain a significant
amount of success. However, at the same time, it needs to be mention that this growth is
being seen in a skeptical manner by the diverse employees of the concerned organization. For