MBA402: Risk Assessment Report on The Trading.com Company

This report presents a risk assessment of Trading.com, a fictional company offering share investment courses and mentoring services, using the Risk Exposure Calculator as outlined in the assignment brief. The assessment focuses on three key areas: pressure points due to growth (pressure for performance, rate of expansion, and inexperience of key employees), pressure points due to culture (rewards for entrepreneurial risk-taking, executive resistance to bad news, and level of internal competition), and pressure points due to information management (transaction complexity and velocity, gaps in diagnostic performance, and degree of decentralized decision-making). The report analyzes each of these aspects, providing insights into the challenges faced by Trading.com and suggesting potential areas for improvement. The report aims to provide a comprehensive analysis of the company's risk profile and offer recommendations to mitigate identified risks.

The Trading.com Company 1
THE TRADING.COM COMPANY
by [Name]
Course
Professor’s Name
Institution
Location of Institution
Date

The Trading.com Company 2
Introduction
The Trading.com is an organisation offering share investment courses as well as
mentoring services to ordinary people. The management seeks to help everyone willing to be a
successful share investor by instill the right mindset, support and also providing education to
willing individuals. The company was established by Jospe Drake, who has led this business to
tremendous growth since it was established. In regard, Trading.com has turned to be a medium
size business that employees more 100 staff. It has offices in Brisbane, Melbourne and Adelaide.
However, the organisations has been facing some challenges since it was established, the main
objective of this study is to come up with a risk assessment report on this company using the
Risk Exposure Calculator to address some issues (Picken, 2017 pp. 7-14)
Pressure due to growth
Pressure for performance
As an upcoming business, all stakeholders within this organisation are expected to
perform to their level best. This will make it easier for the management go achieve the
established goals as well as realize the goals within the stipulated time. The leadership was to
standout in the world market. However, the pressure for performance is too much for the
employees to handle. The leaderships set targets that are not practical and expected the
employees to achieve them within a specific time frame. For instance, the senior management
team set aggressive sales targets for the consultants, which cannot be practical. It is unfortunate
that the consultants are not part of the decisions making when the senior management team is
setting these targets. Moreover, the regions managers are not consulted yet they have important
information on what is happening on the ground. Effective measures should be established to

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handle this problem because if things continue this way, the future of the Trading.com is at great
risk. It is important to be practical in the targets set for the consultants. Moreover, their input in
the decision making is necessary to keep from expecting too much from them than they are able
to offer. The leaderships have to look serious on this issue to avert any threat awaiting this
company in the future (Wang 2018, pp. 141-159).
Rate of expansion
It is the desire of every business to expand and grow such that it can have a good
command of customers and also stand in the world market. Any business that does not target on
growth and expansion it has future (Paul, Parthasarathy, and Gupta, 2017 pp. 327-342).
Therefore, Trading.com under the leadership of Jospe has been working hard to expand from its
current status. However, the strategy set forward to enhance growth matters. It has to be well
defined such that it will not have any negative impact to the organisation. For instance, there is a
problem on the effort put in place by the management of this organisation. The operation of the
organisation is expanding faster than its capacity to hire and induct new staffs. In regard, the
regional manager has resorted in lowering the employment standard for the company by hiring
new people that have not any experience in sales. They lack skills and competence that is
required by the management of this organisation so that it can be able to achieve the set goals
and realize its vision on time. This is risk because it can cause this company the loss of
customers since they will not get the satisfaction they need. It is a challenge that might collapse
this organisation due to stiff competition its likely to face on the growth.
Inexperience of key employees

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Key employees in every organisation should be very experienced, skilled and with
technical knowhow required to handle their position so that they can take the business to the next
level of success. Hence, any organisations need to invest a lot of time in seeking the right
individuals who will fill those positions because they play a significant role in the failure and
success of the business (Scott, Goode, Salmon, and Senserrick, 2016 pp. 88-96) It is quite
unfortunate some of the key employees are inexperience and therefore they do not handle their
duties and responsibility as it is expected to take this organization to the next level of success.
Some of these employees hold very senior positions where they are involved in making
important decisions on how the affairs of the company should be handled. For instance there are
a lot of malpractices among the regional managers; they do not handle their duties in a way that
will help the organisation solve the problems that it is facing. They do not follow the
employment standards in hiring of new staff. In regard, they get the workers with no capacity to
handle their position, which is a great mistake in any organisation. People in such position of
leadership should make the due diligence in ensuring that they have the right staffs with the
necessary qualifications and skills in their area of specialization. Hence, the regional manager do
not deserve those positions do not deserve those position and should be demoted for the success
of this organisation (Crichton, Margaret, and Rhona Flin 2017, pp. 201-238)
Pressure due to culture
Reward for entrepreneurial risk taking
Providing rewards to the employees and rest of stakeholders is paramount since it
motivates them to put more effort in discharging their duties. Besides, it helps in a positive
competition that leads to growth and development in the organisation. The employees are

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inspired to work hard and with excellence, which is quite important in an organisation (Bates,
Knowles, and Friday, 2017 pp. 1494-1499). In Trading.com Company, there is not a defined
procedure for rewarding the employees. Right from the beginning, the consultants were paid
only in commission based. This is despite the effort they put in place in the company. The
management paid them a percentage of $10,000 course fees for every client they signed up. This
was quite unfortunate and kept most of these consultants from working with zeal and enthusiasm
expected for employee. The consultants had to work extra hard to earn the commission and
those who did not manager to get a clients end up wasting their time because they were not paid.
Although the base salary was introduced by Jospe, it was not carried out in a way that would
provide a lasting solution to this problem. It has led to unhealthy competition that has turned out
to be quite ruthlessness among the employees. Hence, a better way of providing reward has been
established to help the management achieve its goals.
Executive resistance to bad news
The top leadership in every organisation has to be on the lookout on any bad news that
might interfere with the operation and progress of a company so that a remedy can be sought as
soon as possible. The strategic committee should be very attentive so that it can be able to act
with urgency every time there is bad news in an organisation. This is not the case with the
Trading.com organisation. The executive seem to be less interested and resistance to bad news
that comes from the ground. There have been a problem of customer satisfaction, a scenario
which requires an urgent response from the senior management team but nothing has been done.
Customers mean so much to any organisation; they can determine its success and failure
(Lumpkin, & Dess, 2015). Therefore, it is not a wise idea for the top leadership to ignore the
clients concerns because they might cost the organisation in the future. The behavior of the

The Trading.com Company 6
executive to resist bad is not necessary and should be changed with urgency for the future of this
business.
Level of internal competition
Competition is necessary but only when is carried out by employees with a common
goals. It should be employees where employees work as a team and there is cooperation that will
helping in achieving their objectives. In such a case, people help to create a serene atmosphere
for working and this important in increasing the level of productivity in an organisation
(Hausknecht, 2017). However, the kind of competition that is going on in Trading.com
organisation is not necessary. The employees are working as individuals and not in teamwork.
The main idea behind this kind of competition is for them to outdo one another and not to
achieve the common goals that have been established by the management. In regard, they do not
help one another better their skills and techniques of delivering their mandate. Moreover, they
create a very unfriendly working environment, which discourages them from exercising their full
potential in what they do. Such a high rate wrong internal competition result to conflict and
disagreement that leads to incompetence, wastage of time as well as resources. The management
needs to establish a program that will help the employees to work as a team and cooperate well.
Pressure point due to information management
Transaction complexity and velocity
It is quite unfortunate that the managers in the Trading.com organisation have little or no
opportunity in scrutinizing transactions, a process that will help them to make sure that the
policies are adhere to. The inadequate as well as overloaded computer systems may not be able
to effective capture the information facts that will help to support growth (Tao, Song, Ferguson,

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and Kochhar, 2018, pp.667-680) This is evident in the manner that the consultants have been
treated since the beginning of this organisation. Payment has been a problem; the management
has failed to pay them effectively due to failure of accounting for all the financial resources
within the company. This is quite unfortunate since it has caused numerous problems and this
might affect the future of the company if the appropriate steps fail to be taken. There is also
unreasonable rewarding consultants, which lead to further transaction complexity and velocity. It
is important for management to have a good record for all transaction made in the organisation
since it will make it easier to account and understand how the money is used. The Trading.com
has enough financial resources to handle its problems; however, due to problems with
complexity, there is massive waste of money which is quite unfortunate.
Gap in diagnostic performance
Diagnostic performance refer to a problem defining method that leads to an accurate
identification of the desired and actual individual performance level as well as the organisation
process. it is carried out in an organisation to find out what need to be done to help employees
and other stakeholders to carried out their duties and responsibilities with excellence. If the
diagnostic performance identifies a problem in individuals or organisation process, effective
measures are carried out to handle that problems and help the affected individual to improve. It is
apparent that diagnostic performance is poorly performed in Trading.com. This is due to
organisation processes that are wanting and require immediate changes but nothing has been
happening (Lyon, 2018, pp. 198). Moreover, there are individuals constantly repeating the same
mistake that might cost the business but they have not been identified. Therefore, there is serious
gap in the diagnostic performance process in this organisation. The problem need to be attended
to and solved so that the management can be able to raise the performance level of their

The Trading.com Company 8
employees and also ensure the organisation process is undesirable. The management needs to
establish the right systems that will bridge the gap in the diagnostic performance.
Degree of decentralized decision making
Decentralized decision making refer to the process where decision making the authority
is distributed throughout the large group. It helps the manager at the lower level to participate in
decision making and therefore develop solutions for solving the many challenges they encounter.
This helps in enhancing self-reliance and confidence among the employees (Schutte, 2017).
However, the decentralizing decision making process in Trading.com Company is wanting.
Some of the leaders with the mandate of decision making do not make the decisions that will
help the organisation achieve its goals in future. For instance, the regional managers do not do
the due diligence in when hiring the new staff. They hardly consult from other relevant authority
in the company and therefore end up having workers that cannot deliver. There is a problem in
the senior leadership as well; they are resistance to news that can help in making sound decisions
for the welfare of the company. Without cooperation in decision making among all level of
leaderships, it is extremely hard to come up with decision that will help in solving the issues at
hand.
Conclusion
Being successful is the primary goal of every organisation. It brings a sense of fulfillment and
satisfaction when they are able to meet the expectation of their customers and stand out in the
market. This will require them to be on the lookout and be very careful how they choose to
handle the risk or any other challenges that might block their progress. Therefore, the
Trading.com Company should learn to use the risk exposure calculator to suggest where the risk

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is growing and how fast. In regard, the leadership will take the necessary steps to protect the
success. However, they should not that no all the risk are bad and it is up to the leadership to
decide the if the level of risk in this organisation require watchfulness or action. The essence of
risk exposure calculator in Trading.com Company is to enable the management to have the right
resources to handle any risk that can occur.

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