MBA402: Risk Assessment Report on Trading.com's Governance and Ethics

This report evaluates the risk assessment of Trading.com, a fictional company, based on the provided case study and the HBR article 'How Risky is Your Company?' The analysis focuses on three key areas: pressure points due to growth (performance, expansion, and employee inexperience), cultu...Read More

GOVERNANCE, ETHICS AND SUSTAINABILITY

Executive Summary
The aim of this report is to evaluate the risk assessment calculator that can be used in the
business organizations for assessing the risks. In addition, this paper also sheds light on the
pressure points due to growth, performance and rate of expansion. Moreover, this paper also
highlights the pressure points due to culture of an organization. Furthermore, the report also
focuses on the information management due to the pressure points.
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Table of Contents
Introduction......................................................................................................................................3
Risk Exposure Calculator................................................................................................................3
A. Pressure points due to growth.....................................................................................................3
Pressure for performance.............................................................................................................3
Rate of expansion.........................................................................................................................4
Inexperience of key employees....................................................................................................4
B. Pressure points due to culture.....................................................................................................5
Rewards for entrepreneurial risk taking.......................................................................................5
Executive resistance to bad news.................................................................................................6
Level of internal competition.......................................................................................................6
C. Information management due to Pressure points due.................................................................7
Velocity and Transaction complexity..........................................................................................7
Diagnostic performance gaps.......................................................................................................7
Decentralized decision making degree........................................................................................8
Conclusion.......................................................................................................................................8
Reference list...................................................................................................................................9
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Introduction
The focus of this assignment is laid on the pressure points of the company Trading.com. In
addition, the paper will also discuss the pressure points due to the culture of the company
Trading.com. Furthermore, the report will also shed light on the pressure points due to
information management of the firm Trading.com.
Risk Exposure Calculator
Figure 1: Risk assessment calculator
(Source: Çalıyurt, 2019)
A. Pressure points due to growth
Pressure for performance
It has been distinguished that the organization Trading.com is one of the biggest internet
exchanging business organization. So as to deal with the presentation, the business
administrators of the firm have utilized a hazard introduction number cruncher (Bosselmann,
2016). The score of pressure for the performance of the company is 5 due to the overall
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performance management. The company has used several tools and techniques of the
performance management strategy in order to manage the performance of the staffs. The staffs’
performances are very important for the business development of the firm Trading.com. In
addition, the performance of the employees can also be improved by using the performance
management technique (Çalıyurt, 2019). The performance management technique will also help
the business managers of the firm Trading.com to level up their resolving strategies of the flare
ups and high access to the performance data. On that note, it can be said that the performance
management strategy will be appropriate for the business managers of the company Trading.com
to mitigate the issues of complex language. A proper communication plan can also be
implemented within the business process of the firm in order to mitigate the complex language
issues of the employees. This will also help the firm to develop its performance for earning huge
money (Crane and Matten, 2016).
Rate of expansion
The score of weight for the rate of extension is 4 as the organization has utilized a successful
development technique. It has been identified that the worldwide, universal or global
organizations all did not simply rise unto the scene; they began off as independent ventures or
endeavors from various topographical locales on the planet (Davies, 2016). In spite of the fact
that in some time past, generally organizations stayed neighborhood and less organizations
achieved national circulation or national marking most organizations as of late have strived to
extend onto a national scale as they develop, by upgrading the speed and effectiveness of supply
chains to new markets. In addition, the business managers of the organization Trading.com has
also use the introductory webinars as a business model (De Villiers et al. 2017). With the help of
this model, the business managers of the firm will be able to discuss with the consultant for the
purpose of business expansion. On that note, it can be said that the expansion rate of the firm
must be managed by the business authorities in an appropriate manner. It is also very important
for the business managers of the firm to increase the rate of expansion process in an effective
way. The business model has been used by the business managers of the firm in order to enhance
the investment process in an effective way (Dony et al. 2019).
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Inexperience of key employees
The risk exposure score of the inexperience of the key employees is 3 as the company has used
an ineffective strategy for maintaining a positive business environment. It has been distinguished
that the organization Trading.com is primarily engaged with upgrading the money related rate.
The financial pressure has affected the motivation of the employees in an effective way.
Moreover, the employees have also struggled to maintain a perfect balance between their
working life and personal life (Formentini and Taticchi, 2016). In order to mitigate the issue, the
business managers of Trading.com must try to maintain a positive business environment. The
positive business environment will help the employees to receive special bonus from the firm
like luxury holidays. In addition, the business managers have also implemented the reward
strategy within the firm for motivating the employees in an effective way. The aggressive sales
target has also been set by the business managers by which the employees will be able to
enhance their performance (Galliott, 2016). Furthermore, the business chiefs of the association
Trading.com has likewise utilize the early on online classes as a plan of action. With the
assistance of this model, the business chiefs of the firm will most likely talk about with the
specialist with the end goal of business development.
B. Pressure points due to culture
Rewards for entrepreneurial risk taking
The hazard presentation score for the pioneering hazard taking is 4. The business chiefs of the
association Trading.com has likewise spurred the representatives in such a way by which they
can go for broke in a successful manner (Hoitash et al. 2019). Business enterprise training is a
long lasting learning process that could extraordinarily profit a large number of the present
battling business people. The encounters, abilities, and frames of mind fundamental for fruitful
independent company advancement are not educated at any one spot or time. Truth be told, the
prior youngsters can start to get familiar with the chances and aptitudes related with enterprise,
the almost certain they are to be effective as business visionaries. In addition, the viable business
instruction requires working with a wide assortment of assets and contacts in both the school and
network Administrators as a rule have a wide system of assets (Hussain et al. 2018). They may
have contacts with model enterprise programs or other uncommon projects. Additionally, their
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endorsement is generally basic in arranging creative exercises, for example, field treks,
workshops, and visitor speakers. The company Trading.com will also be able to take potential
risks for the entrepreneurship in an effective way. It has been distinguished that the organization
Trading.com is for the most part engaged with improving the money related rate. The budgetary
weight has influenced the inspiration of the representatives in a viable manner (Kirwan et al.
2017).
Executive resistance to bad news
The score for the official protection from awful news is 5. As the official of the firm has utilized
the hazard the board methodology so as to deal with every one of the dangers in a viable manner
along these lines they will be profited in future. This strategy will help the executives of the firm
Trading.com to resist with the bad news in an effective way. Another basic methodology
includes requesting that the respondent characterize the terrible news (Lee et al. 2016). This
approach is ordinarily found in subjective investigations of the conveyance of terrible news.
Models incorporate inquire about on the refusal of solicitations accuse the board and awful news,
and routine terrible news conveyed by bosses. Be that as it may, investigate directed with either
approach has given next to no thoughtfulness regarding the meaning of terrible news. Specialists
who think about the conveyance of terrible news by experts give characterizing depictions of the
center of terrible news. There are the individuals who convey awful news in their private lives,
which they allude to as the novices (Mahmood and Orazalin, 2017). At that point there are the
individuals who convey terrible news as a feature of their work or on the other hand occupation.
Research on the individuals who convey terrible news as a feature of their occupation ordinarily
has concentrated on such experts as specialists, coroners, and law requirement authorities.
However administrators are additionally word related deliverers of terrible news, as there are so
numerous authoritative procedures wherein they should convey such data (Quarshie et al. 2016).
Level of internal competition
The business managers of the firm Trading.com has also used a potential competitive strategy by
which the employees can compete with other. The competition within the working place will
help the employees to enhance the sales rate of the firm Trading.com. The internal competition
among the employees will also help the firm trading.com to develop its financial rate for
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achieving business goals and objectives. Huge firms normally moved toward becoming idleness
ridden throughout the years, victims of their own prosperity (Roos, 2017). Clients and their
needs are underestimated. Management frameworks take on a life of their own. Practices and
convictions become instilled. Such a framework is scarcely helpful for progressive new thoughts.
Regularly such thoughts workmanship created by little upstart firms or by illustrated
representatives who leave their latency ridden firm to pitch their plan to another person. Interior
challenge can give a remedy to nearsighted reasoning, basically as methods for testing the
covered up presumptions that underlie an organization's current innovations or markets (Yekini
et al. 2019).
C. Information management due to Pressure points due
Velocity and Transaction complexity
Exchange many-sided natural world and speed has given the polite diversity in behavior and
international natural world this is a real hazard for Alphabet to distinguish and run gap in
analytic implementation events the association is rising rapidly and as one more coating of the
decision-making has been added to the arrangement, this could maybe prompt different terms in
data to manager for hazard appraisal and control. It is important that bookkeeping information
offer together limp and torrential stick of accomplishment. Any long term process will believably
shroud irregularities or inadmissible patterns in monetary execution (Mahmood and Orazalin,
2017). Then again, consistently the consultants are situated by the neighborhood administrators
according to their business execution. The most critical performing specialists get remarkable
prizes, for instance, expensive endowments and luxury events. Level of decentralized pick
assembly it can be said that there is presently supplementary level of decentralized basic
guidance with this new group constitution significance director can settle on nearby guesswork
option or go for bankrupt which almost certainly would not meet the basics of alphabet tactic or
senior supervision goals of the width of plenty hazard.
Diagnostic performance gaps
In the analytic presentation over the morals and supportability it tends to be said that there are
various holes in indicative execution so as to keep up the business morals and maintainability in
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a suitable way. A portion of the more troublesome undertakings to prepare and quantify are
delicate aptitudes, which incorporate the emotional area. These qualities are not noticeable, in
this way an agent conduct must be estimated (Galliott, 2016). For instance, it cannot tell if a
laborer is very much propelled by taking a gander at her, however they can watch some delegate
practices, for example, being on schedule, functioning admirably. On the other hand, HR experts
assume a significant job in forming corporate moral codes, approaches and methods and after
that conveying and instructing that data to the workforce. In numerous organizations, the top HR
administrator either fills in as the accepted boss morals and consistence officer or works with the
individual in that job to oversee morals and consistence programs. Aside from the CEO, there
might be not any more significant moral good example in the association than a HR oversee
Decentralized decision making degree
For deciding the degree of decentralization, a director must think about eleven variables. On the
other hand, it can be assumed that decentralized process sometimes being different problems in
order to execute the decision making process of any organization (Yekini et al. 2019). Maybe the
superseding factor deciding the degree of decentralization is, as in different parts of strategy, the
rule of expense. When in doubt, the more expensive the activity to be chosen is, the more likely
it is that the choice will be made at the upper dimensions of the executives. The way that the
expense of a misstep influences decentralization isn't really founded on the supposition that top
chiefs commit fewer errors than subordinates.
Conclusion
By the means of this assignment it is reasonable to conclude that in order to maintain the entire
ethics, suitability and governance of different business associations they should communicate
with their stakeholders and maintain the entire business process in an appropriate manner. What's
more, the business chiefs of the association Trading.com has likewise utilize the early on online
courses as a plan of action. With the assistance of this model, the business supervisors of the firm
will probably talk about with the expert with the end goal of business extension. On that note, it
tends to be said that the development rate of the firm should be overseen by the business experts
in a suitable way. It is likewise significant for the business directors of the firm to build the rate
of development process in a powerful manner.
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Reference list
Bosselmann, K., 2016. The principle of sustainability: transforming law and governance.
Routledge.
Çalıyurt, K.T., 2019. Ethics and Sustainability in Accounting and Finance, Volume I. Springer.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Davies, A., 2016. The globalisation of corporate governance: The challenge of clashing
cultures. Routledge.
De Villiers, C. and Maroun, W. eds., 2017. Sustainability accounting and integrated reporting.
Routledge.
Dony, N., Joseph, C. and James, B.J., 2019. Corporate Governance Attributes and Firm’s Value.
In Ethics and Sustainability in Accounting and Finance, Volume I (pp. 227-245). Springer,
Singapore.
Formentini, M. and Taticchi, P., 2016. Corporate sustainability approaches and governance
mechanisms in sustainable supply chain management. Journal of Cleaner Production, 112,
pp.1920-1933.
Galliott, J., 2016. Commercial space exploration: Ethics, policy and governance. Routledge.
Hoitash, U., Hoitash, R. and Burke, J., 2019. The Heterogeneity of Board-Level Sustainability
Committees and Corporate Social Performance.
Hussain, N., Rigoni, U. and Orij, R.P., 2018. Corporate governance and sustainability
performance: Analysis of triple bottom line performance. Journal of Business Ethics, 149(2),
pp.411-432.
Kirwan, J., Maye, D. and Brunori, G., 2017. Reflexive governance, incorporating ethics and
changing understandings of food chain performance. Sociologia ruralis, 57(3), pp.357-377.
Lee, K.H., Cin, B.C. and Lee, E.Y., 2016. Environmental responsibility and firm performance:
the application of an environmental, social and governance model. Business Strategy and the
Environment, 25(1), pp.40-53.
Mahmood, M. and Orazalin, N., 2017. Green governance and sustainability reporting in
Kazakhstan's oil, gas, and mining sector: Evidence from a former USSR emerging
economy. Journal of cleaner Production, 164, pp.389-397.
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Quarshie, A.M., Salmi, A. and Leuschner, R., 2016. Sustainability and corporate social
responsibility in supply chains: The state of research in supply chain management and business
ethics journals. Journal of Purchasing and Supply Management, 22(2), pp.82-97.
Roos, J., 2017. Practical wisdom: making and teaching the governance case for
sustainability. Journal of Cleaner Production, 140, pp.117-124.
Yekini, K., Li, H., Ohalehi, P. and Chijoke-Mgbame, A.M., 2019. CSR disclosure and corporate
sustainability: evidence from the Shenzhen Stock Exchange. International Journal of Business
Governance and Ethics, 13(3), pp.300-322.
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