Comprehensive Risk Assessment Report: Property Millionaires Evaluation

This report provides a comprehensive risk assessment of Property Millionaires, a real estate consultancy. It utilizes the Risk Exposure Calculator to analyze pressure points stemming from growth, organizational culture, and information management practices. The assessment examines factors like performance pressure, expansion rate, employee experience, reward systems, executive attitudes, internal competition, transaction complexity, diagnostic gaps, and decision-making decentralization. The report identifies potential risks and their impact on the company, offering insights into areas needing improvement to mitigate potential threats. It highlights the importance of understanding and addressing these risks to ensure sustainable growth and stability for Property Millionaires, drawing on academic research and practical analysis.

Running head: RISK ASSESSMENT OF PROPERTY MILLIONAIRES
RISK ASSESSMENT OF PROPERTY MILLIONAIRES
Name of the Student:
Name of the University:
Author’s Note:

1RISK ASSESSMENT OF PROPERTY MILLIONAIRES
Table of Contents
1.0 Introduction...........................................................................................................................3
2.0 Overview of Property Millionaires............................................................................................3
3.0 Risk Assessment of Property Millionaires................................................................................4
3.1 Pressure points due to growth................................................................................................4
3.1.1 Pressure for performance................................................................................................4
3.1.2 Rate of expansion...........................................................................................................5
3.1.3 Inexperience of key employees......................................................................................5
3.2 Pressure points due to culture................................................................................................6
3.2.1 Rewards for entrepreneurial risk taking.........................................................................6
3.2.2 Executive resistance to bad news...................................................................................7
3.2.3 Level of internal competition..........................................................................................7
3.3 Pressure points due to information management...................................................................7
3.3.1 Transaction complexity and velocity..............................................................................8
3.3.2 Gaps in diagnostic performance.....................................................................................8
3.3.3 Degree of decentralized decision making.......................................................................9
4.0 Results of the Risk Assessment.................................................................................................9
5.0 Conclusion.................................................................................................................................9
References......................................................................................................................................10
Appendix 1.....................................................................................................................................12

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1.0 Introduction
As stated by Graham and Kaye (2015), risk assessment refers to the process which is being
followed by the business corporations for the identification of the risks that they face on the
score of their business operations and also the formulation of adequate risk mitigation strategies
for the resolution or the mitigation of the same. Rodríguez, Ortega and Concepción (2017) are of
the viewpoint that the mitigation of the different business risks faced by the business
corporations since the risks faced by the business corporations directly affects their profitability
and also future growth prospects. More importantly, it had been seen that different risk
assessment tools like the Risk Exposure Calculator have gained prominence in the present times
in the face of the different business risks faced by the business corporations and the importance
of the resolution of the same (Aven 2016). This report intends to undertake a risk assessment of
the business corporation Property Millionaires through the usage of the risk assessment tool,
Risk Exposure Calculator.
2.0 Overview of Property Millionaires
Property Millionaires, founded by George Kirzner, is a real estate consultancy
corporation which specializes in offering mentoring and different real estate seminars to the
individuals. More importantly, the philosophy of the concerned corporation is the fact that
everybody regardless of their background has the capability to become a property millionaire
provided they have the right kind of approach or for that matter mindset. Thus, the business
corporation under discussion here offers different kinds of seminars as well as mentoring
services to the individuals so as to help them to make the right investment decisions.
Furthermore, presently it had been seen that the services offered by the concerned corporation

3RISK ASSESSMENT OF PROPERTY MILLIONAIRES
had been highly appreciated by the customers and this in turn had contributed towards the
exponential growth of the corporation. However, it had been seen that whereas George Kirzner is
highly optimistic regarding the growth of the corporation the employees of the corporation are
skeptical regarding the same because of the different risks associated with the same.
3.0 Risk Assessment of Property Millionaires
3.1 Pressure points due to growth
Khan et al. (2016) are of the viewpoint that the contemporary business corporations are
focusing on the enhancement of their growth as a way to increase their profitability. However, as
discussed by Harrison and Lock (2017), the enhancement of the growth rate entails with itself
various kinds of risks and the future growth prospects of the business corporations greatly
depends on the extent to which they are being able to mitigate the different risks faced by the.
More importantly, Teixeira et al. (2015) have noted that for the adequate mitigation of the risks
the business corporations need to effectively identify the risks faced by them and it is precisely
here that the process of risk assessment becomes important from the perspective of the different
business corporations.
3.1.1 Pressure for performance
George Kirzner had provided an aggressive sales target to the different employees of the
business corporation under discussion here for the purpose of supporting the growth of the
concerned corporation. More importantly, it had been seen that the employees are being offered
commissions on the basis of the number of customers that they bring to the corporation rather
than fixed wages. This in turn had encouraged the employees to take the help of various
unethical or unfair measures for the enhancement of their earning and thereby the profitability of

4RISK ASSESSMENT OF PROPERTY MILLIONAIRES
the corporation. Furthermore, it had been seen that this had substantially reduced the quality of
the consultancy services which are being offered by Property Millionaires to their customers.
More importantly, the growth that the concerned business corporation had been able to attain can
be ascribed to the high quality of consultancy services offered by them to the customers. Thus, it
can be said that the decline in the quality of the services is likely to adversely affect the
concerned corporation and therefore the concerned corporation scores 3 on the Risk Exposure
Calculator (Appendix 1).
3.1.2 Rate of expansion
Property Millionaire has around 100 employees however to support the growth of the
corporation it is presently hiring new employees. More importantly, it had been seen that the new
employees who are being recruited do not have adequate qualification or for that matter the skill
sets needed for the completion of the job roles. Furthermore, in the earlier times it was seen that
various kinds of training programs were being offered to the employees however presently it is
seen that because of the large number of candidates who are being recruited no training programs
are being offered to them. These in turn is likely to substantially reduce the quality of the work
which would be completed with by them and thereby the score of the corporation under
discussion here in this particular attribute is 4 as per the Risk Exposure Calculator (Appendix 1).
3.1.3 Inexperience of key employees
Giannakis and Papadopoulos (2016) are of the viewpoint that the growth of a particular
business corporation greatly depends on the experience of their workers or for that matter the
quality of the work which is being performed by them. In the case of Property Millionaires it had
been seen that an important factor which had directly contributed towards the growth of the
concerned corporation over the years can be ascribed to the high quality of the consultancy

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services offered by the workers of the corporation to their customer. However, presently the
corporation is recruiting large number of employees who do not have the required experience or
the qualification and on top of that adequate training programs are also not being offered to
them. This is likely to adversely affect the growth of the concerned corporation rather than
supporting it and thus the score of the corporation in this particular attribute is 2 (Appendix 1).
3.2 Pressure points due to culture
As discussed by Kerzner (2017), the business corporations need to formulate the kind of
organizational or for that matter workplace culture within their corporation which will support
the achievement of their business or strategic goals. Adding to this, Aslam et al. (2017) have
noted that the organizational culture which is being followed within a particular business
corporations greatly determines the manner in which the workers would be completing their job
roles or for that matter their productivity. Furthermore, if the business corporations take the help
of ineffective organizational culture then this is likely to pose different kinds of risks and also
adversely affect the growth rate of the corporations as well (Leveson 2015).
3.2.1 Rewards for entrepreneurial risk taking
The management team of Property Millionaires does not support risk taking on the part of
the employees. For instance, it had been seen that no specific stipulations regarding the manner
in which the employees are required to conduct the seminars have been stated by the corporation.
Thus, the different employees take the help of their measures and only the successful ones
wherein the employees have been able to make the sale are being reported to the management
tea. Furthermore, it had been seen that Regional Managers and other high ranking officials of the
corporations do not encourage the employees to take risk and this in turn had substantially

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narrowed down the scope of the corporation. Thus, Property Millionaires had a score of 3 on the
Risk Exposure Calculator on this particular index (Appendix 1).
3.2.2 Executive resistance to bad news
The Managers of Property Millionaires have shown a high resistance to bad news and this
in turn have influenced the employees of the concerned corporation not to disclosure the details
of the seminars wherein they have not been able to make the sale. For instance, it had been seen
that in the absence of any specific guidelines regarding the conduct of the seminars the
employees have evolved their own styles for the conduct of these seminars. However, only the
details of those seminars are being conveyed to the management team wherein the employees
have been successful. Thus, on the Risk Exposure Calculator, the score of Property Millionaire
on this attribute is 2 (Appendix 1).
3.2.3 Level of internal competition
The organizational or for that matter the workplace culture of Property Millionaires is
dominated by intense or fierce competition. More importantly, it is seen that the employees do
not discuss strategies or for that matter measures regarding the manner in which they conduct the
diverse seminars or mentoring sessions. Furthermore, it had been seen that most of the
employees have started to take the help of unfair or for that matter unethical measures for the
achievement of their targets. These in turn is likely to adversely affect the growth rate of the
concerned corporation and thereby the score of the corporation on this particular attribute is 2
(Appendix 1).

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3.3 Pressure points due to information management
Ajibade et al. (2016) are of the viewpoint that the business corporations need to
effectively transfer information from one department of their corporation to another so as to
facilitate the adequate completion of the work of the corporation. However, as discussed by
Hunziker (2019), within the spectrum of the majority of the business corporations it is seen that
this particular practice is rarely being followed and this in turn had given rise to different kind of
risks that they face. Zhong and Zhao (2015) have noted that the business corporations are
required to ensure the fact that adequate information is being timely conveyed to them so as to
mitigate the risk associated with the same.
3.3.1 Transaction complexity and velocity
The major source of income of Property Millionaires is from the sale made by the
employees on the basis of the free seminars that they offer to the customers. However, since the
corporation has not stipulated any fixed pattern for these seminars it is seen that the employees
follow their own patterns. Furthermore, the information regarding only those patterns is being
conveyed to the corporation by the employees wherein success had been achieved. More
importantly, majority of the times even the Regional Managers have no information regarding
the number of sales made by the employees until the end of the month. These in turn pose a
substantial amount of challenge or for that matter risk to the corporation under discussion here
and thus its score is 2 on this index (Appendix 1).
3.3.2 Gaps in diagnostic performance
The Regional Managers of Property Millionaires are required to keep a track of the
performance of the different employees of the corporation. However, it is seen that the
employees do not report the sales that they have until the end of the month and thus majority of

8RISK ASSESSMENT OF PROPERTY MILLIONAIRES
the times even the Regional Managers have no idea regarding their performance. This can be
attributed to the fact that the employees do not work on fixed salaries rather they work on
commission. These in turn present a substantial amount of risk to the concerned corporation and
its score of this particular attribute is 3 (Appendix 1).
3.3.3 Degree of decentralized decision making
Property Millionaires offers complete autonomy to its employees regarding the manner in
which they make the sales. Thus, it is seen that they have evolved their on seminar styles and
even take the help of unethical or for that unfair measures for the enhancement of their
performance. These in turn have reduced the quality of the services offered by them and thereby
pose a significant threat to the corporation under discussion here. Thus, 2 is the score of Property
Millionaire on this particular attribute (Appendix 1).
4.0 Results of the Risk Assessment
The grand total of all the scores that Property Millionaires have received in each of the
nine attributes indicate that its total score is 25 which means that it falls in the caution zone
(Appendix 1). This indicates that Property Millionaires need to use adequate risk mitigation
strategies for the resolution or for that matter the mitigation of the risks faced by it.
5.0 Conclusion
To conclude, the business corporations on the score of their operations inevitably face
different kind of risks. Thus, it becomes important for the business corporations to take the help
of adequate tools for the identification of the risks faced by them. This in turn helps the business
corporations to formulate or devise adequate risk mitigation strategies for the mitigation of the

9RISK ASSESSMENT OF PROPERTY MILLIONAIRES
risks faced by them. These aspects of the process of risk assessment become apparent from the
above analysis of the same through the usage of the case study of Property Millionaires and Risk
Exposure Calculator.

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References
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Aslam, A., Ahmad, N., Saba, T., Almazyad, A.S., Rehman, A., Anjum, A. and Khan, A., 2017.
Decision support system for risk assessment and management strategies in distributed software
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Giannakis, M. and Papadopoulos, T., 2016. Supply chain sustainability: A risk management
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Business Continuity and Corporate Governance. Rothstein Publishing.
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Hunziker, S., 2019. Enterprise Risk Management: Modern Approaches to Balancing Risk and
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Kerzner, H., 2017. Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
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Appendix 1
Risk Exposure Calculator Result