Comprehensive Risk Assessment Report for Trading.com Operations

This report presents a risk assessment for Trading.com, analyzing potential pressure points arising from rapid growth, organizational culture, and information management practices. The analysis covers specific risk exposures related to business performance, expansion rate, and employee skills. Cultural aspects such as entrepreneurial risk-taking, handling of bad news, and internal competition are also evaluated. Furthermore, the report examines information management challenges including transactional complexity, diagnostic performance gaps, and the degree of decentralization in decision-making. The conclusion emphasizes the importance of risk assessment in identifying and mitigating negative impacts on business operations, providing effective measures to manage and reduce identified risks, ensuring the company's stability and success.

Risk
Assessment

Table of Contents
INTRODUCTION...........................................................................................................................1
A. Pressure points due to growth................................................................................................1
B Pressure point due to culture...................................................................................................2
C. Pressure points due to information management....................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................4

INTRODUCTION
Risk assessment is defined as identification of hazards process that could negatively
impact on organisation's ability in order to conduct business. It help to identify inherent business
risk that provides measure, processes and controls in order to reduce the impact of risk in
business operation. In this report organisation chosen is Trading.com that offers ordinary people
to share and investment courses and ongoing monitoring services. This report is going to
analysis risk exposure on growth of the company, culture, and information management. Along
with appropriate specific risk exposure that calculate the risk factor of each element in an
effective manner.
A. Pressure points due to growth
Pressure of performance: Each and every organisation has set out over all preferred
result that are necessary to accomplish gaols and objectives. It is also describe as continually
achieving preferred result in an manner that is as effective and efficient as possible. It also
reminds that training, strong commitment that need hard work which also consist of risk factor
too. Eventually, in order to sustain strong performance and all parts of system a manager must
closely integrated and aligned in achieving desired result. The company was started three years
ago by a share trader. In last one year company has increased their sales dramatically and now its
operation are expanding faster that the company's capacity. Herein, the risk factor is that within
stipulated time period an organisation need so that they manage their growth rate in an effective
manner so that they can evaluate it according to their flexibility. Moreover, they are handling
their problems to have continues in holding their staff accountable for delivering strong
financial performance.
Rate of expansion: Expanding business is not an easy task to maintain an appropriate
rate of expansion. Business growth often carries with a corresponding increase in financial
fortunes of owners as well as higher performance of employees. Moreover, expansion causes
variety of changes that all present different managerial, legal and financial challenges. Herein,
respective company is increasing rapidly with the good rate of expansion over last one year. For
such instance on organisation is able to attain high growth of success in an effective manner.
Apart from this in such case the risk factor is that they need to take necessary step so that they
can maintain their stability is growth expansion. Foe such purpose they can adopt different
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strategies and planning so that they can avoid risk an uncertainties while operating their business
growth and expansion.
Inexperience of key employees: In context to business, employees are refer to those
individual who are hired by an employer to do a specific job. Herein, there is always a risk
before hiring an employee as weather a right employee is selected or not. If an right e3mployee
is not selected that an organisation will not able to achieve high growth rate and success in
competitive market place. In case of Trading.com, managers are herring skilled and inexperience
employees as they are more focusing on expansion of business in advance rate. For such
instance they are hiring unskilled employees as they are taking this risk as they are much more
focused on business expansion and growth. On the other hand it has been said that employees
are the asset of an organisation so it us necessary for each organisation to have an skilled and
knowledgable employees so that gaols and objectives of an organisation can be attained within
stipulated period of time.
B Pressure point due to culture
Rewards on entrepreneurial risk taking: In today's business context entrepreneur are
emerging in rapid rate as they are coming with innovative ideas and views in order to attract
large number of customers. Moreover, an entrepreneur is own who take risk before entering in to
new and competitive market place. As risk is associated with weather its idea of new venture will
be successful or not in competitive market place. Herein, if Trading.com are coming up with
new business idea with the market place then they need to analysis the market very keenly so
that they can analysis the needs and wants of customers in an appropriate manner. In this
manner an organisation will able to know what are needs and requirements of of customer where
they want to expand their business in an effective rate. Moreover, it also become difficult for an
entrepreneur to cope up with with business norms and regulation so that they can fulfil their
business motive in an effective manner as well as maintain stability for longer duration of time.
Executive resistance of bad news: While operating a business there are much more
certainties in getting resistance of bad news. Bad news as always consist with the business
operation and function. If a business activities in not done in an appropriate manner they it leads
to have bad news that can be in any departments or any others etc. Herein, if a respective
organisation is not able to maintain their quality of product and services they it result to have
bad news. Such is their share market drop down or else if an organisation is not able to maitain
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stability for longer duration of time they they will not able to attain success for longer duration of
time. Herein, it can be said that risk is associated with each and every factor which can lead to
have bad news for an organisation. For such instance on organisation attain higher level of
strategies so that they can flexibility in achieving their gaols and objectives in an appropriate
manner.
Level of internal competition: In operating business activities and function an
organisation organisation always faces with both internal and external competition while
performing business activities and function. Herein, in context to Trading.com the internal level
of performance is much competitive as compare to external competition. For such purpose risk
factors is that id employees and other staff members are not able to perform their activities and
function they an organisation may lead to fail in abstaining higher level of competition in
internal level. Apart form this while conducting an business active any organisation need to
maintain both internal and external factor of competition so that they can achieve success in an
effective manner. Thus, it is necessary for an organisation to maintain both the factors so that
they can good command in competitive market place for longer duration of time. Even, there are
many different factors that impact both in positive and negative manner. It can be political,
social, environment and legal factors etc.
C. Pressure points due to information management
In present scenario each company need to implement information technology in their
business activity. With information technology company improve their work performance by
which it is easy management to complete their task in efficient way. As it is already stated that
trading.com is user friendly with information technology because they used webinar to reach
towards customer.
i) Transaction complexity and velocity:
Like in case of information management they solve task in a quick manner but there are
different roles that put pressure on company management. If the transaction complexity and
velocity increase in information technology then it is difficult for company to find out changes
that happen because of velocity. As it increase the work process and with this process is also
complex because large number of activities are started to work with information technology.
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ii) Gaps in diagnostic performance:
For a financial company it is necessary that company observe the work on regular basis
like there is always up and rise in the monetary market. Apart from this major service provided
by trading.com is consulting in regard to money market. For this consultant different members
are hired by company to complete their task. With this large number of customer are using
services of trading.com and more number of clients are waiting to response to gain company
performance. Management put pressure on consultant by increase their target. This result that
benchmark would decrease as it is difficult to bear heavy pressure for company.
iii) Degree of decentralised decision making
In last decentralised decision making refer to take power between all employee's. It help
company to develop those ideas that are in mind of customer. Like for this case it is not easy to
handle new customer which are huge in number with existing customer. So in this top
management of trading.com decide to decentralise the power of company between employ it also
help company to provide effective services to clients.
CONCLUSION
From the above discussion it has been concluded that risk assessment play's an effective
role as it help an organisation to have proper identification of negative impact with business
operation and business function. This process help an organisation to identify and define
inherent business risk in order to provide highly effective measure so that an organisation can
maintain their risk factor as well as help to reduce such risk factor that will help an organisation
to maintain such risk factor. Moreover, an organisation can know what are the different risk
factors that are indicated with each and every activity such as in pressure of business
performance, rate of expansion and inexperience key of employees. Moreover, activities of
culture such as rewards of entrepreneurial risk taking, executive resistance of bad news as well
as level of internal competition. Furthermore, activities related to information management such
as transactional complexities and velocity, gaps of diagnostic and degree of decentralisation
decision making. Thus, it can be said that risk assessment is essential in operating business
activities and function and effective rate.
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REFERENCES
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