Detailed Risk Assessment Report for Property Millionaires' Growth

This report provides a risk assessment for Property Millionaires, a company offering real estate investment seminars and mentoring services. The assessment utilizes a Risk Exposure Calculator to evaluate pressure points related to growth, culture, and information management. The analysis of growth pressures includes assessing performance demands, expansion rates, and the inexperience of key employees. Cultural pressures are examined through the lens of entrepreneurial risk-taking rewards, executive responses to negative news, and internal competition levels. Information management is evaluated based on transaction complexity, diagnostic performance gaps, and the degree of decentralized decision-making. The report assigns risk scores, culminating in an overall risk assessment and concludes that the business operates in a caution zone. The report emphasizes the importance of identifying and managing these risks for sustainable business performance.

RISK ASSESSMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Pressure points due to growth.....................................................................................................1
Pressure points due to culture.....................................................................................................2
Pressure points due to information management........................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Risk assessment is quite useful technique as to how much organisation is exposed to risk.
Present report deals with risk assessment and using Risk Exposure calculator for Property
Millionaires which offers range of real estate investment seminars and mentoring services to
people. The pressure points due to growth, pressure point due to culture and pressure point due to
information management will be addressed along with their sub points. Collectively, overall total
score will be made in which 1 will be for low level of risk and 5 for high level of risk. Moreover,
there will be assessment of firm's performance and in relation to risk to which it is exposed.
MAIN BODY
The risk assessment evaluation using the Risk Exposure Calculator is helpful for
ascertaining level of risks to which Property Millionaires is associated to. The three points in
relation to addressing risks are outlined below-
Pressure points due to growth
1. Pressure for performance
The fast growing company is often placed to intense competition and also profits are
increasing at a rapid rate. It can be analysed that capital market and employees are attracted to
the company. Property Millionaires was formed three years ago and is able to earn good quantum
of profits and has multiple locations in the Australia. It provides range of real estate seminars and
mentoring services by charging nominal rate. Sales of organisation increased up to a major
extent. The management should be able to enhance employee's productivity to emphasizing on
growth of organisation and meet sales and profits goals.
Goals are set by top management and flows from top to down in Property Millionaires. In
relation to this, employees are providing desired productivity for ensuring maximum sales are
arrived and goals are met within stipulated time (Risk Assessment. 2019). The risk exposure
calculator can be applied and low score is scored by firm. This is evident from the fact that sales
are met which leads to goal accomplishment. Moreover, Property Millionaires is able to make
good sales proving that financial performance is adequate and overall 2 score can be allotted to
company with regards to risk exposure calculator.
2. Rate of expansion
It is another growth-related pressure point being applied to company in measuring how is
the rate of expansion in company. Increment observed in expansion of production facilities,
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distribution channels and related matters also posses risks which is observed in organisation.
Property Millionaires after started since three years ago has employed more 100 employees.
However, it can be assessed that operations are expanding at a rapid rate faster than
organisation's capacity for hiring and inducting new staff. George, real estate developer is
cautioned about the situation and continues to hold staff to be accountable for imparting adequate
financial performance.
Property Millionaires requires more consultants for delivering seminars as operations are
expanding faster and careful resources' allocation is the need of an hour. With regards to this,
score of 5 can could be imparted as level of risk is high in terms of rate of expansion. This is
evident from the case study that firm is expanding quite fast in comparison to people are
employed (Hay and et.al., 2018). This has led to requirement of more employees which are
inexperienced. Moreover, employment standards are also lessened by Property Millionaires
leading to attainment of goals for increased operational activities.
3. Inexperience of key employees
The increase in rate of expansion gives rise to increase in hiring more candidates suitable
for accomplishing job roles in a better manner. It is the case with Property Millionaires as it can
be ascertained that firm is expanding up to a high extent which in need has led to requirement in
more personnels for consulting services. Moreover, with increase in requirement of workers, it
has forced company to lower their employment standards and hiring new staff having low or no
experience in sales. New employees often lack required skills and competencies for performing
adequately and lack productivity as well. Inexperience also brings additional risk especially in
unstructured and high-innovative companies. Employees of Property Millionaires will take lot of
time to learn and as a result, overall score of 4 could be given to it.
Hence, score of three points come to 4+5+2 = 11.
Pressure points due to culture
1. Rewards for entrepreneurial risk taking
The risks are required to be taken and no business could survive for long-term without
taking entrepreneurial risk. It requires careful examination of level of risk else, money is loose.
Successful enterprise such as Property Millionaires could invest in risky deals as it had good past
performance in terms of sales which maximised quite effectually. On the other hand, it can be
analysed that business activities generated by creative and risk-taking employees (Leroi, 2018).
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In relation to this, environment in which employees are allowed to operate and return to base
when they have captured 'spoils'. Increasing frequency of failure of new products or services also
is the sign of risk maximising on part of organisation. However, with regard to this, George, real
estate developer has never failed with regards to it. Hence, score of 2 could be given in risk
exposure calculator for rewards for entrepreneurial risk taking quite effectually.
2. Executive resistance to bad news
It is another cultural pressure point when it flows upward. Executives running
organisation quite often develop resistance to bad news. They want to get surrounded by
individuals wanting to share their pride in day-to-day operations and discharge confidence with
regards to reaching demanding performance goals. The resistance often leads to increment in risk
and as a result, organisation suffers loss (Lovins and et.al., 2018). It can be referred to Property
Millionaires that it is required hearing about bad news and get surrounded by people for
answering those questions and will help for determining score. George is of the concern
regarding the expansion rate of operations and seeks to be great problem. However, Regional
Managers and Senior Management Team act without sense of information sharing at all levels.
Thus, risk is high and score of 5 can be given as business is not able to get into account all
related information in effective manner.
3. Level of internal competition
The level of internal competition is another pressure point on the company. Management
believes that they should provide promotions and rewards for increasing short-term performance
in the best manner possible (Zafar and et.al., 2018). It can be analysed that due to this, internal
competition gets intensified and may gamble with business assets and organisation's reputation.
If gamble is a success, then it is beneficial for company and workers. However, in event of
failure, position of employee will be worst as he/she could lose job. Performance reviews should
be conducted in fruitful manner so as to enhance employee's morale and satisfaction up to a
major extent. However, overall internal competition is medium in Property Millionaires and
score of 2 could be given.
Thus, overall score on culture pressure can be summarised from these points such as 2+5+2 = 9.
Thus, it is moderate for organisation.
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Pressure points due to information management
This is the process trough which the business professionals will ascertain the risks which
are being associated with the practices. Thus, it enables professionals in analysing the flows
through which information have been flowed in the business from one direction to another
direction. Property Millionaires have been denoted as the fasted growing business which is in
eager to improves its operational tendency (Lo and et.al., 2018). Thus, managing the records of
operations will be helpful among them as per having better analysis over issues and information
which are to be communicated among each other. In terms of a real estate business there will be
use of various techniques in communicating and providing information based on changes in the
bank interest rates over properties as well as changes incurred in the governmental plans and
policies which are relevant with the real estate industries (Pandya and et.al., 2018).
1. Transaction complexity and velocity
There has been complexity in transacting the information among each of the department
which are acting in the business. Thus, the complexity creates risks of manipulation as well as
there will be less transparent information. Mainly, in the case of derivatives financial products
which are being used in the financial instruments have been affecting the operations of the firm
as well as inviting risks which creates obstacles for the operation of firm. Property Millionaires
will have such issues as per fluctuation of the market value as well as share value which may
affects industrial operations (Olver and et.al., 2018). There will be requirement of implicating
techniques such as ERP software, Cloud computing that in turn helps in reducing the risks.
Thus, the materialistic issues have to be managed and overcome by the accounting
executives and operational managers with reference to reduce the financial manipulation. Thus,
records of each transaction in the books of accounts will be required to be reliable and accurate
to bring correct information among the stakeholders. Regular auditing, examining the
transactional activities will be helpful techniques which will play main role in managing
financial condition of business. However, on the basis of the performance of the business the
transitional complexity have scored 2.
2. Gaps in diagnostic performance
There have been various obstacles which may incurred in identifying the issues and
making an accurate decision. Thus, in organising the facts there can be use of various techniques
which must be measured and analysed to have better ascertainment of the information. Property
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Millionaires might have problems in managing and communicating the information among the
business supervisors. Therefore, there will be issues and obstacles which may incurred in
analysing the relevant facts. Therefore, it is basically depending on the strategies which have
been considered by the firm in mitigating such materialistic risks.
Thus, the gaps in diagnosing performance is mainly due to poor communication as well
as contraction of employees with the top-level management. However, implicating such
operations will require to be adequate and effective in meeting gaps between business
performance. Property Millionaires might have issues relevant with the credit risks as per raise in
the market value of properties which might affect its operations (Coleman and et.al., 2018).
Thus, in order to overcome with such challenges there will be requirement of managing
transaction, communicating each information as well as defining such issues to meet obstacles at
the right time. In diagnosing the gaps of the business have scored 4.
3. Degree of decentralised decision making
This is the information which will eb effective in terms of making adequate ascertainment of
the information which have been used to make drastic increment in the operational practices. To
analyse the nature of tasks that are required to be performed by the professionals, location and
ability of workers based on delegate job responsibility has to be analysed and ascertained to have
better analysis over the span of control. Thus, in accordance with the case of Property
Millionaires where demonstrating the degree of decentralization is mainly relevant with the
operational management and risk management of the firm.
Therefore, decentralisation is the process which pushes the business authority in thinking as
well as decision making for the process of mitigating the risks (Uchida and et.al., 2018). Thus,
professionals will analyse and evaluate the risks which are being associated with the operations
of real estate business. It bounds professionals to make accurate and concrete decision for the
operational increment. In degree of decentralization of the decisions making process the risks
have been evaluated and scored at 4.
However, as per analysing the entire process of the risk assessment which has had presented
the total score of the entire process is 29. Thus, below 35 of score defines that the business is
being acting in the caution zone.
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CONCLUSION
On the basis of above report, it can be said that, analysing the business operations based on
risk assessment calculator will be helpful to the top level managerial authorities in decision
making. Thus, planning and policy designing will be helpful and adequate with respect to bring
the adequate solutions to the issues.
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REFERENCES
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evaluation of the Residential Positive Achievement Change Tool. Youth violence and
juvenile justice. 16(1). pp.97-116.
Leroi, E., 2018. Landslide risk mapping: problems, limitations and developments. In Landslide
Risk Assessment (pp. 239-250). Routledge.
Lo, L. L. and et.al., 2018. The iPrevent online breast cancer risk assessment and risk
management tool: usability and acceptability testing. JMIR Formative Research. 2(2).
p.e24.
Lovins, B. K. and et.al., 2018. Validating the Ohio Risk Assessment System Community
Supervision Tool with a Diverse Sample from Texas. Corrections. 3(3). pp.186-202.
Olver, M. E. and et.al., 2018. Predictive accuracy of Violence Risk Scale–Sexual Offender
version risk and change scores in treated Canadian Aboriginal and non-Aboriginal sexual
offenders. Sexual Abuse. 30(3). pp.254-275.
Pandya, E. and et.al., 2018. Impact of a computerized antithrombotic risk assessment tool on the
prescription of thromboprophylaxis in atrial fibrillation: hospital setting. Clinical and
Applied Thrombosis/Hemostasis. 24(1). pp.85-92.
Uchida, T. and et.al., 2018. Bereavement risk assessment of family caregivers of patients with
cancer: Japanese version of the Bereavement Risk Assessment Tool. Palliative &
supportive care, pp.1-5.
Zafar, F. and et.al., 2018. Pediatric Heart Donor Assessment Tool (PH-DAT): A novel donor risk
scoring system to predict 1-year mortality in pediatric heart transplantation. The Journal
of Heart and Lung Transplantation. 37(3). pp.332-339.
Online
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