Risk Assessment Report: Property Millionaires - MBA402

This report presents a comprehensive risk assessment of Property Millionaires, a company providing investment and mentoring services. Utilizing the Risk Exposure Calculator, the analysis identifies key pressure points across three critical areas: growth, culture, and information management. The growth section examines risks arising from performance pressures, rapid expansion, and employee inexperience. Cultural risks are evaluated, including rewards for risk-taking, executive resistance to negative news, and internal competition. Information management risks cover transaction complexity, gaps in performance diagnostics, and decentralized decision-making. The report concludes that the company operates at a high-risk level and recommends mitigation strategies.

Running head: GOVERNMENT ETHICS AND RESPONSIBILITY
Government Ethics and Responsibility
Name of the Student:
Name of the University:
Author Note:

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EXECUTIVE SUMMARY
The stated report is based on describing the ideology concerned to the risk management with
the help of a given case study that is based on a company named Property Millionaires. The
mentioned company is known to deal with investment and mentoring services to be sold to
ordinary people. In the concern of managing the risks, the new risk assessment tool name
Risk Exposure Calculator has been taken into consideration. The paper highlights the risk
faced by Property Millionaires segregated in three main parts. The first one is based on the
synergy of growth, the second on culture and the last one on the information management
system. While summing up the risk level, the paper analyzed that the company is a high-risk
level point of 25. This made it clearly evident that the company should be attentive towards
the risk level and find effective ways to reduce the negative impact of the same.

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Table of Contents
Introduction................................................................................................................................3
Overview of the Organisation....................................................................................................3
Risks faced by Property Millionaires.........................................................................................4
Risks due to the growth..........................................................................................................4
Pressure Points due to Culture...............................................................................................6
Pressure points due to information management...................................................................7
Assessment Outcome.................................................................................................................9
Conclusion..................................................................................................................................9
References................................................................................................................................10
Appendices...............................................................................................................................12
Appendix 1...........................................................................................................................12

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Introduction
Studies show that the risk management process undertaken by a business organization
highly depicts the capability of the same to thrive in the business market and achieve success
in the same (Baxter 2018). As stated by Parker, Van Alstyne and Choudary (2016), risks
managed in an inefficient manner leads to negative and adverse impact on the working
transactions of the business enterprise. The employees who are stated to be responsible in the
concern of managing the risks occurring in a business firm as well as finding the major
reasons behind the occurrence of the same are the top-level managers or the leaders of the
business enterprise (Fayol 2016). Management of the risks occurring in the business is a vital
part of the same needs to be assessed before it can be managed (Kerzner 2017). Thus, a new
risk assessment tool named Risk Exposure Calculator has been determined to be used by the
organizations in the current time to examine what level of risk the same has fallen into and
thus find the possible ways to mitigate the effects of the same.
Overview of the Organisation
The business organization analyzed with the help of the case study is named as
Property Millionaires. The stated business organization is known to deal with providing the
services to the common society with regards to the seminars of the investment synergy and
the ongoing services of mentoring. The philosophical thought process of the company has
been determined as it states that every living human has the equal potentiality of becoming a
property millionaire investor if the same is set back by the correct mental state, education as
well as knowledge and an effective support system. This unique belief of the company has
made it move towards steps of growth and success. Growth does not strike the door of a
business firm without carrying the synergy of the risk with the same (Gates 2016). In the
context of this ideology, it was examined with the help of the case study that Property

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Millionaires was also suffering from a diversified form of risks. The risks are specified as
below.
Risks faced by Property Millionaires
Business organizations are recorded to face several numbers of risks in the concern of
continuing their business transactions from the day of its existence (Axelsson and Easton
2016). The synergy of risk is known to exist because of the high level of changes in the
business market along with the increased level of competition and the plans and policies of
the business organization itself (Birru et al. 2019). Hereby, it was undermined that the sudden
and unexpected growth in the company of Property Millionaires brought a long list of risks to
be impacting the business conditions of the same. Thus, the risks faced by the company of
Property Millionaires have been broadly categorized in the sections which are described
below.
Risks due to the growth
Every business organization have to face a certain amount of risks in the concern of
carrying its business process and achieving the desired goals and objectives (Knechel and
Salterio 2016). The major goal of Property Millionaire Company, in this case, have been
recognized to receive a high amount of financial gain which, in turn, brought several
elements of risk that impacted the brand image as well as the working structure of the
company. As opined by Katzenbach and Smith (2015), a business organization should always
focus on undermining the cost the same has to suffer in the concern of receiving a high
amount of success. Thus, the risks faced by Property Millionaires in the concern of growth
point are specified below.
Risk due to pressure for growth

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The demand of the customers concerned about the investment and mentoring services
provided by the concerned company here in the report has created pressure on its salesperson.
The owner of the firm had been recorded to impose ruthless targets upon its consultants to
bring the high number of clients to the business. The employees, moreover, did not have a
fixed pay; instead, they were paid on a commission basis of sales per person they brought to
the firm. This practice, undoubtedly brought a lot of customers to the firm, but the consultants
of the firm were known to carry unethical means of bringing the client to the business. This
made the company reach a risk point level of 3 (Appendix 1).
Risk due to pressure for expansion
The high number of demand from the customers has been determined to be a greater
form of challenge for Property Millionaires in the connection that the firm has a limited
amount of human resource working for the same as compared to the demand received by the
firm. This, in turn, demanded the company to hire new employees on an urgent basis. The
owner of the company in this context had been recorded to employ the inexperienced level of
employees in the firm who did not know what and how to work for the firm. As stated by
Picken (2017), inexperienced employees destroy the brand image of the company as they
cannot provide the required amount and level of service to the customers. Therefore, the
company of Property Millionaires had been recorded to reach at a risk level point of 4
(Appendix 1).
Risk due to the inexperience of employees
The quality of the products, as well as the services that are offered by a business
organization, is known to be related to the success of the same (Dale and Plunkett 2017). In
this connection, it was undermined that the newly recruited employees of Property
Millionaires were inexperienced and unknowledgeable about the services provided by the

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same. Therefore, the clients were recorded to complain that they have not been provided with
the right kind of mentoring services. This, in turn, brought up a question for the brand image
of the company and the risk level point of the company in this synergy is determined to be at
a level of 2 (Appendix 1).
Pressure Points due to Culture
The cultural aspects of a business organization are what defines the level of
performance of the employees connected to the same (Argyris 2017). It can be stated that the
culture and performance level of a business organization works together in a parallel line.
The cultural aspects of a business organization are known to impact the mental state of every
working individual in the working firm. Thus, the insignificant work culture is known to
impact the employees of an organization in a negative way. Thus, the risks associated with
Property Millionaires on the base of its work culture are determined as below.
Risks due to rewards for entrepreneurial risk-taking
The fact that the case study brought into light is that the owner of Property
Millionaires inherits the trait of a high level of risk-taking capability. In this concern, George
had created a huge level of competition in its working culture. The consultants and the
employees were positioned on the basis of sales they made related to the services offered by
the company. This, in turn, made way for the employees to carrying wrong means of doing
the business and making the sales. They did this in the concern of getting a high amount of
commission as they were paid no salary, and their performance appraisal was also based on
the synergy of a number of clients they brought to the company. This brought a risk level
point of 3 to the firm (Appendix 1).
Risks due to executive resistance to bad news

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It was recognized based on the viewpoint of Church and Waclawski (2017), that the
future working of any productive business organization is highly based on the manner the
same behaves and reacts in the concern of bad news received. If the firm is able to reduce the
impact of the bad news and continues its work with positivity, it succeeds, if not, the same
fails and gets impacted by the risks and drawbacks of the same. The consultants at Property
Millionaires had a profound level of resistance to the bad news as they were recorded not to
convey the complaints to the owner and let it remain to themselves. However, the bad impact
of the bad news was not effectively handled by the consultants, and the same deteriorated the
image of the company. This was determined to bring the company to a risk point level of 2
(Appendix 1).
Risk due to internal competition
The owner of the company, as stated above in the report, have created a high level of
ruthless internal competition in the business firm. The rise in the internal competition made
the consultants compete against each other and stand at a better level to earn a better amount
of incentive and performance appraisal. However, this internal competition was not healthy
for the firm as they were only judged based on their sales target, and this made them use
unethical means of making a higher amount of sales. As opined by (), unfair means of doing
the business hampers customer loyalty for the business entity. Thus, it brought Property
Millionaires to a risk level of 3 (Appendix 1).
Pressure points due to information management
The synergy of information management is determined to be an inevitable part for a
business organization as it helps in the effective management of the policies and procedures
to be undertaken in the firm (Cetindamar, Phaal and Probert 2016). Concerned with this

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theory of information management, the risks associated with Property Millionaires are
specified as below.
Transaction Complexity and Velocity
The company under discussion here in the paper is known to advertise its business
services to the customers with the help of leveraging free demo mentoring and investment
services to them. However, it was examined with the help of the case study that there was no
fixed course of service related to both mentoring and investment. This affected the reputation
of the company as the customers were not given the right form of service after they paid for
the registration. This was hampering the future of the company, and the risk was determined
to be at a level of 2 (Appendix 2).
The gap in performance diagnostic
The performance of the employees in an organization should be measured on the basis
of the effectiveness it brings to the entire working structure of the same with the means of fair
business practices (Masa'deh, Obeidat and Tarhini 2016). However, the company of Property
Millionaires have been known to judge the level by the number of sales the employees made
per month. This paved the way for aggressive work culture in the firm, and the employees
used inauthentic means of selling the services. This brought a risk of point 3 to the firm
(Appendix 1).
Degree of Decentralised Decision Making
The organizational culture of Property Millionaires has been determined to be
working in a decentralized manner because the same has allowed its consultants to deal with
the customers in their own manner. The owner of the company was only focused on getting a
high number of clients registered to the company. The manner the clients were brought to the
company and the manner they were provided with the service after being registered to the

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firm was determined to be the sole lookout of the employees, and the owner did not interfere
or take any interest. This led to a high level of unfair means carried in the business, and the
number of complaints also increased. Thus, the company reached a risk level of 2 in this
connection (Appendix 1).
Assessment Outcome
With the help of using the Risk Exposure Calculator, it is investigated that the sum up of the
different risks faced by Property Millionaires have turned up to be 25. This implicitly means
that the company is at an attentiveness stage to measure the risk and foster effective ways to
manage the same.
Conclusion
Given the findings based on the above investigation done on Property Millionaires, it
was found that the management system of the company is not sufficient enough to earn the
customer as well as brand loyalty. The same is evident from the fact that the consultants of
the company have been undertaking inauthentic and unfair means of doing the business
because of the rigorous target level they have been given. Moreover, the freedom they have
to deal with the clients in their own way without the interference of the owner had led to this
high amount of risk to the company, which should be soon managed.

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References
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