MBA Assignment: Evaluating Risk and Performance at Trading.com

This MBA assignment focuses on Trading.com, a company offering mentoring services and investment courses. The report analyzes the company's risk factors using a risk exposure calculator, dividing risks into internal pressures (growth, culture, and information management). It examines cultural pressures like rewards for risk-taking, internal competition, and resistance to bad news. The assignment also explores information management pressures, including complexity and velocity of transactions, gaps in diagnostic performance, and the degree of decentralized decision-making. The analysis aims to identify areas for improvement in risk mitigation and overall business performance, providing recommendations for Trading.com to enhance its strategies and achieve sustainable growth. References from several academic journals are also included.

Running Head: MBA Assignment
Trading.com
MBA Assignment

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Part B
Trading.com is a company which provides ongoing mentoring services and share
investment courses with the ordinary people. The primary aim of the company is to
provide sufficient information to the people in relation with investing in the right direction
for getting higher returns as well as for securing their future. For becoming a successful
investor as per the Trading.com, a person should have appropriate knowledge, the right
mindset, support, and education. The company was established three years ago and within
a short period of time, the organization has been able to mark themselves a medium scaled
enterprise with more than 100 employees along with \ in big cities like Sydney, Melbourne,
Adelaide, and Brisbane. One year ago, organizational sales get increased dramatically and
in relation with this, their operations were also increasing and to handle their operations,
management hired new staff but in relation with this, the organization found one issue to
hold the staff accountable for delivering strong financial performance (Simons, 1999).
With regards to the organizational services, certain issues and risks were also involved
which were required to be confronted for the objective of delivering high financial
performance. With this objective, the organization adopted the method of analysing risk
and its impact by risk exposure calculator. This calculator divided risk into three parts of
internal pressures such as growth, culture and information management (Sacks, et. al.,
2016).
Points due to culture
Rewards for entrepreneurial risk-taking
In order to attain sustainable growth, development, and survival in the competitive and
dynamic business environment, it is required for the organization to adopt creative and
innovative measures. In addition to this, when a company is attaining its short-term goals,
management does not think for innovation and creativity as their confidence with regards
to their existing products and services gets high and other factors get irresistible for the
organization. In order to mitigate the risk factors involved in the organizational

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functionalities, it is required for the organization to believe in its staff members’ capability,
resources of the organization and on the managerial and leadership skills which
organization have for their betterment and for their future growth (Brancato, et. al., 2017).
Internal competition
Cultural pressure also includes internal competition and although internal competition is
effective for employees' growth and success sometimes, it also affects overall
organizational performance as it fills negativity amongst the employees for each other. This
mostly results in less information sharing amongst each other because every employee
focuses on improving its performance and showcasing its performance up from others to
get promotions. In order to mitigate this risk, the organization needs to adopt appropriate
measures like realising employees that their short-term goals will not help them to uplift
their career and rather focusing on attaining short-term goals, focus on attaining long-term
goals. With regards to this, the organization could also introduce incentive schemes to
boost up employees’ confidence along with encouraging collaboration and teamwork in
order to help the organization to move towards the attainment desired goals and objectives
(Losina, et. al., 2017).
Resistance to bad news
In order to calculate pressure point, Trading.com requires determining the percentage of
business which is based on new, innovative and creative products. Along with this,
participation from the risk-taking employees will also be evaluated to analyse the level of
pressure points and in relation to this, another cultural pressure point i.e. information will
also be considered because it is the most appropriate measure through which an
organization could be able to manage its resources for declining with the risk factors.
Trading.com is running successfully and the management and every other stakeholder has
developed a resistance to bad news and in relation to this, the organization seeks positive
responses from their surroundings. Those who also speak about obstacles, issues and other
types of dangers are accused of not being the teammates. Thus, it is necessary for the
management to develop an appropriate and effective workplace environment to have

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better and sufficient information regarding their surroundings (Doerrenberg, Duncan &
Zeppenfeld, 2015).
Part C
Pressure points due to information management
This is considered as the final step in risk exposure calculator and it relates to the flow of
information within the organization. When systems fail to manage information, risk
exposure mounts. It has been observed that an organization attain success, growth and
overall development goals through fulfilling their customers' demands along with
providing them with qualitative services and products in terms of making their unique
experience. These changes could affect the complexity of the transactions and there are few
people who understand the nature of risks and in relation with the transitions, they also
generate measures for controlling the risks which could be generated from these
transactions (Sousa, Silva & Bazzurro, 2017).
Complexity and velocity
Trading.com is engaged in providing various courses in relation with making investments
to the ordinary people and the organization has seen the high growth rate in the past year.
Due to the huge demand of their services, the organization hired new employees and this
leads to decrease organizational employment standards because for matching up with their
clients' needs, the organization hired many new people without any previous experience in
sales. The velocity of transactions is another major risk factor because Trading.com faces a
numerous and huge number of operations suddenly and due to this, managers were not
able to scrutinise the transactions as per the standards and policies (Hoang, et. al., 2015).
Gaps in diagnostic performance
When Trading.com hires new staff without any experience in sales, they found that they
were not able to match up with the criteria set up by the regional managers to attain their
desired goals. This leads to determine the gap in the performance of the employees as per
the organizational standards and if they are not able to match up, appropriate training

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needs to be provided so that they could be able to deal with the organizational tasks along
with fulfilling their clients’ requirements.
The degree of decentralised decision making
This is the final information-management pressure point in the risk exposure calculator is
decentralised decision making. Trading.com got higher sales dramatically within one year
and in relation to this, top-level management has given the right to their local and regional
managers to deal with the situations and take appropriate decisions. There are numerous
advantages linked with the decentralised decision-making system but sometimes it also
generates risk for the organization because employees could take decisions for their own
benefits (Sedunov, 2016).

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References
Brancato, A., Brocca, D., Chiusolo, A., Marques, D.C., Crivellente, F., De Lentdecker, C., De
Maglie, M., Egsmose, M., Erdos, Z., Fait, G. and Ferreira, L., 2017. Peer review of the pesticide
risk assessment for the active substance isoxaflutole in light of negligible exposure data
submitted. EFSA Journal, 15(2).
Doerrenberg, P., Duncan, D. and Zeppenfeld, C., 2015. Circumstantial risk: Impact of future
tax evasion and labor supply opportunities on risk exposure. Journal of Economic Behavior
& Organization, 109, pp.85-100.
Hoang, J.K., Reiman, R.E., Nguyen, G.B., Januzis, N., Chin, B.B., Lowry, C. and Yoshizumi, T.T.,
2015. Lifetime attributable risk of cancer from radiation exposure during parathyroid
imaging: comparison of 4D CT and parathyroid scintigraphy. American Journal of
Roentgenology, 204(5), pp.W579-W585.
Losina, E., Michl, G.L., Smith, K.C. and Katz, J.N., 2017. Randomized Controlled Trial of an
Educational Intervention Using an Online Risk Calculator for Knee Osteoarthritis: Effect on
Risk Perception. Arthritis care & research, 69(8), pp.1164-1170.
Sacks, G.D., Dawes, A.J., Ettner, S.L., Brook, R.H., Fox, C.R., Russell, M.M., Ko, C.Y. and
Maggard-Gibbons, M., 2016. Impact of a Risk Calculator on Risk Perception and Surgical
Decision Making. Annals of surgery, 264(6), pp.889-895.
Sedunov, J., 2016. What is the systemic risk exposure of financial institutions?. Journal of
Financial Stability, 24, pp.71-87.
Simons, R. 1999. How Risky is your Company? [online]. Available from:
https://hbr.org/1999/05/how-risky-is-your-company [02/10/2018].

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Sousa, L., Silva, V. and Bazzurro, P., 2017. Using Open-Access Data in the Development of
Exposure Data Sets of Industrial Buildings for Earthquake Risk Modeling. Earthquake
Spectra, 33(1), pp.63-84.