Risk Assessment Report: Property Millionaire Business Analysis

This report presents a risk assessment of Property Millionaire, focusing on governance, ethics, and sustainability within the company's operations. The analysis employs a risk exposure calculator to evaluate pressure points stemming from growth, including performance pressures, expansion rates, and employee inexperience. Cultural factors, such as entrepreneurial risk-taking rewards, executive resistance to bad news, and internal competition, are also examined. Furthermore, the report investigates information management challenges, including transaction complexity, diagnostic performance gaps, and the degree of decentralized decision-making. The study concludes with an overall risk score and recommendations for strategic improvements based on the identified pressure points. The report provides a detailed evaluation of the company's risk profile and potential areas for enhancement.

Governance ethics and sustainability

Table of Contents
Introduction......................................................................................................................................3
Risk Assessment Report..................................................................................................................3
Pressure points due to growth......................................................................................................3
Pressure for performance.........................................................................................................3
Rate of expansion....................................................................................................................4
Inexperience of key employees...............................................................................................4
Pressure points due to culture......................................................................................................5
Rewards for entrepreneurial risk taking..................................................................................5
Executive resistance to bad news............................................................................................6
Level of internal competition...................................................................................................6
Pressure points due to information management.........................................................................7
Transaction complexity and velocity.......................................................................................7
Gaps in diagnostic performance..............................................................................................8
Degree of decentralized decision making................................................................................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

INTRODUCTION
Internal competition, decentralization and several elements increase the risk of the company; risk
exposure calculator calculates the risk of the company by considering the pressure points related
with the performance, information management and growth of the company (Forouzanfar & et
al. 2015). The present study is related with the analysis of risk of the company named as
Property Millionaire. The company provides the range of real estate seminar and ongoing
mentoring services. Further, the risk analysis conducted in the study is based on the risk
exposure calculator, which is determined by the pressure point due to growth, culture and
information management.
RISK ASSESSMENT REPORT
Pressure points due to growth
Pressure for performance
Rapidly developing businesses are frequently strong and exhilarating surroundings. Growing
companies draw the attention of workers and the capital markets similar (Modarres, 2016).
Further persons who deliver are pleased with their work. On the other hand, the persons who are
unsuccessful in fulfilling expectations do not split in the reward. Consequently, after that, that
expansion is able to direct towards the first pressure point that is pressures due to performance
(Yildirim and Ivrendi, 2016).
If the performance measure guided in a proper manner, then it may lead to excellent monetary
performance, modernism and capital creativity. Subordinate may fear that unsuccessful to fulfil
performance prospect will surely put at risk their position or recompense (Chavez, & et.al2016).
Consequently, they might sense strong pressure towards achieving something at all costs, yet in
case their proceedings violate moral bounds or else contravene company strategy.
The score of this point can be determined by an objective set by the management with the small
and no inputs by subordinates (Ward, 2016). Pressure on that point is habitually high when the
capital markets grasp elevated expectations for monetary results and dealer offer up the stock to
establish it.

Rate of expansion
Further, the second growth-related pressure point is the speed of development in actions.
Another time, it is excellent news and a bad news story. Innovative manufacture services,
allocation channels, and product lines are merely essential when trade is thriving (Bravo-Biosca,
Criscuolo, and Menon, 2016). On the other hand, with no careful preparation and sharing of
resources, the infrastructure to hold up speedy development might rapidly turn out to be overfull,
ensuing in sacrifices in excellence (Windolf, 2018). Moreover, while calculating the pressure on
this point, the executive must ask themselves, is process growing faster than their capability to
spend in more populace and expertise.
The inexperience of key employees
An elevated level of rawness between workers and employees produce the third growth-related
pressure point. While numerous individuals approach on board rapidly, executives from time to
time give up backdrop checks or lower performance principles as well as instructive experience
(Prokhorova &et.al 2016). Consequently, a new worker frequently not has sufficient ability or
does not completely recognize their work. The argument for this kind of situation is called as an
array of small and large error, as of sales clerks who mislead significant customers to factory
staff who mismanage hazardous tools (Ward, 2016). From miserable clientele to scarce staff, the
threat pretended by expert employees can be uncomforting. Further, scheming the pressure on
this point, then, the executive may ask themselves, what proportion of our work is filled with
beginners as the significant portion is covered by individuals with less than 12 months of
practice within the corporation. Inexperience comes up with the extra threat, mainly in formless
and high-innovation trade (Picken, 2017) .
The property millionaire because of the fast growth requires the several consultants. The
company lower dawn their employment standard and hire many new employees who have no
prior experience in sales, which is risky for the company by which the performance of the
company reduced.

Pressure points due to culture
Rewards for entrepreneurial risk-taking
For running the business in the long run period, it is essential for the business to take the risk
which leads towards the uniqueness and innovation of the product (Bari, 2018). The success of
the business motivates to people to take the higher risk due to high confidence. However, it
ultimately leads to loss of money. The environment in which the business carried out its activity
is the important factor for determining the higher and lower score, due to rewards for
entrepreneurial risk-taking (Millsteed, Redmond, and Walker, 2016). Further, the increasing rate
of failed services or products and unsuccessful deals is also another important factor in
determining the score (Schwienbacher, 2018).
In the present study related to the Property Millionaires, the manner in which seminars are held
or conducted is not good. Therefore the seminar failed many times. The client is not satisfied
with the seminar because they feel that they interact with the company until they sign up for the
seminar after this consultant fails to respond on their phone calls in a proper manner.
Executive resistance to bad news
It is other pressure points due to culture, which is connected with the flows of information
specifically, as it runs upwards. Executives of the prosperous organizations generally deny to the
bad news, for their safeguard (Wiklund, Yu, and Patzelt, 2018). The managers of the company
want to be enclosed by the people who make the appreciation of their pride in the business and
show their determination to about achieving the goals and objectives of the company. The score
of this pressure point depends on the question raised by the management from them. They must
ask themselves how much bad news they actually hear (Chen, Crossland, and Luo, 2015).
In the case of the property millionaire, the activities of the regional managers are not sensible.
For sharing the information, there are not systematic channels either between themselves or with
the senior managers. The senior managers do not want to hear the bad news. They do not
understand the complex language of the consultation process and left their consultant alone.
Level of internal competition
Internal competition is the last volatile element of the cultural pressure point. In the many
organizations, manager assumes that for achieving the promotion and rewards them in the horse

race and competition (Cluley, 2016). However, it may lead to accidental adverse impact. With
this respect, not sharing of the information with each other is one of the common side effects
(Wynarczyk &et.al 2016). Employees of the company feel the pressure that internal competition
may risky to the assets of the business, the reputation of the company, and probable credit loss in
their challenge to increase the short term performance (Belenzon, and Tsolmon, 2016). In this
type of situation, risk and rewards are not consistently share. The score of this point depends on
how the companies are directed the performance review in their organization; the employees are
compared with their own merits or with each other. If the answer is positive, then the company
obtains the higher score.
Currently, Property millionaire is facing high competition in the market. The regional manager
gives the special treatment to the high performing consultant in terms of the royalty. This
treatment leads the reduction in the performance by the other consultant, as they feel
demotivated.
Pressure points due to information management
Transaction complexity and velocity
Classy products, the innovation in the manner of providing the services to the client, uniqueness
in making the new product are some factors on which the success of the business depends. All
these factors lead to the complexity of the transactions (Sadgrove, 2016). Further, the complexity
can be understood by only some people, with respect to the risk and the manner of controlling
the risk. Success can also mean the growth in the volume and velocity of the transactions,
information system generally overburdened by this (Park, and Roome, 2017). Therefore the
manager is unable to identify the important information which is essential for the growth of the
company. The score of this point can be determined by computing the velocity, volume and
complexity of the transaction of the previous year with the current year, by which they know
about whether this aspect increased or decreased in the current year. However, it is very difficult
to compute all the information precisely (Klonowski, 2018).
Gaps in diagnostic performance
The success of the business makes the pressure on the internal reporting system which computes
the significant performance measure such as quality of product or service, order backlogs, return

on capital employed, same-store sales. In the adverse situation, manager generally places interest
over such facts as they want to know the reason for their issues (Skogen & et al. 2016). Further,
it is not generally considered by the manager in the positive time of the company; it is because of
the two reasons. The first one is the nature of the human being, and the other one is that this
system is not sufficient and latest for the rapid growth of the company (Mugambi, &et.al 2018).
This score is ascertained by the feeling of pressure. If the manager spends a lot of time collecting
the right data at the right time, then the score is high.
The degree of decentralized decision making
The degree of decentralization is the last pressure point due to information management. At the
time of expansion of the company, generally, the lower management has independence for the
decision making (Madanoglu, Altinay, and Wang, 2016). Actually, the top management of the
company mainly concentrates on the significant issues of the company such as building the
strategies, setting the goals and objectives, allocation of the resources, review the performance.
Generally, decentralization gives many benefits. The lower management can quickly give the
response to the demand of the market; they are permits for showing their creativity and
innovation technique by which their motivation and satisfaction enhances (Petkovska, 2015).
However, the decentralization has many negative impacts also such as the lower manager is not
fully aware by the strategic planning of the company, by which they may take high risk. Further,
if the companies have not a proper system of communication of the information, then there is a
possibility of the risk. The company gets the high score if the senior manager of the company
receives the information too late.
In the case of the Property Millionaire, the senior management team is not work in a group, but
they are given a great level of independence. All team members develop their seminar content
independently, and they return to the group only when they create substantial value. Along with
this the communication channel of the company is also not proper.
On the basis of the above analysis, the risk exposure calculator of Property Millionaire is shown
below –
Growth

Pressure for
performance
Rate of expansion The inexperience of
key employees
Score
5 3 5 13
Culture
The reward for entrepreneurial
risk-taking
Executive resistance to
bad news
Level of internal
competition
Scor
e
4 5 4 13
Information management
Transaction complexity and
velocity
Gaps in diagnostic
performance
Degree of
decentralization
scor
e
2 3 5 10
Total score of property millionaire = 36
CONCLUSION
On the basis of the above analysis, it has been concluded that a total score of property millionaire
is 36, which is regarded as very high. The company should make various strategies on the basis
of the above matrix and implement the same by considering the capability and knowledge of the
employees.

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