Risk Assessment Report: Trading.com Company Analysis, MBA402 Module

This report presents a risk assessment of Trading.com, a fictional company, based on the provided case study and the Risk Exposure Calculator. The assessment focuses on three key areas: pressure points related to growth (performance, expansion, employee inexperience), cultural aspects (entrepreneurial risk-taking, resistance to bad news, internal competition), and information management (transaction complexity, diagnostic performance gaps, and decentralized decision-making). The report analyzes each area, assigning risk levels based on the calculator and providing insights into the potential challenges and vulnerabilities faced by Trading.com. The conclusion indicates that the company is at a caution stage of higher risk and needs to act to eliminate the caution and level of risk from its organisation. The report includes an executive summary, introduction, detailed analysis, and references, adhering to the MBA402 assignment requirements.

Running head: RISK MANAGEMENT
Risk Management
Name of the Student:
Name of the University:
Author Note:

1RISK MANAGEMENT
EXECUTIVE SUMMARY
The primary aim of the report is to discuss the risk level of the company Trading.com. To
fulfill this aim, the report at the first stage analyses the background of the company. Further,
the report focuses on assessing the different risks that the company has to face based on the
various components. The risk measurement components in the given report are taken as
Pressure due to the growth aspects, the cultural aspects and the information management
aspects. The result of the level of risk faced by the company is measured with the help of the
risk assessment too named as Risk Exposure Calculator. In this concern, the outcome that the
report received is that the company of Trading.com lies at the caution stage of higher risk and
sooner the company needs to act to eliminate the caution and level of risk from its
organisation.

2RISK MANAGEMENT
Table of Contents
Introduction................................................................................................................................3
Description to Trading.com.......................................................................................................3
Risks assessment of Trading.com..............................................................................................4
Risks due to the growth..............................................................................................................4
Pressure due to Culture..............................................................................................................6
Pressure due to the management of information........................................................................7
The Result..................................................................................................................................9
Conclusion..................................................................................................................................9
References................................................................................................................................10
Appendices...............................................................................................................................11
Appendix 1...........................................................................................................................11

3RISK MANAGEMENT
Introduction
Epstein (2018), critically stated that the achievements, as well as the drawbacks of
any capable business entity, is a significant determinant of how the firm deals with the
several amounts of risks and uncertainties that it has to face in its complete lifecycle. Not
only this, but the managerial level employees connected to the firm are also liable to
recognise the significant reasons and causes behind the risks that the business faces. This
recognition will help the managers and the company to mitigate the risks effectively in their
upcoming times and also save the company from the adversity of the dangers. Implementing
this process and strategy of assessment of the risks turns out to be crucial for any business
entity that enables the same to identify the uncertainties that may occur and in this concern
plan their strategic processes in a way that the risks are being mitigated effectively in the
working conditions of the business (Ansoff et al. 2018). It was examined with the help of the
studies that a useful risk assessment tool termed as the Risk Exposure Calculator is being
used by various business firms in the concern of the identification of the risks and the level of
the dangers the firm goes through. In this regard, the given report is focused on investigating
and discussing the chances that the business enterprise of Trading.com is known to face. The
risks are calculated on the basis of the new risk assessment tool mentioned earlier.
Description to Trading.com
The company Trading.com is known to offer its clients and customers with the
services of investment courses along with the mentoring services as well. The company
believes in the fact that every individual has the capability of turning into a renowned and
successful investor. In this connection, the value statement of the company clearly states that
the individuals should be given opportunities to gain the right support, set of psychology and
better form of education. The study based on the assessment of the concerned company

4RISK MANAGEMENT
brought a matter of fact into light that the company leverages its customers and clients with
the facilities of investment that helps them to save and secure the financial requirements. This
strategy of the company is not only recognised to help the customers but also helped the
company to gain the desired amount of achievement and success. However, it was also
investigated that all the employees working in the business organisation of Trading.com have
different viewpoints and perception regarding the success of the organisation. The case study
of the company showed that the owner, Jospe Drake, was known to be positive about the
achievements, whereas the employees were considered to be cynical about the same.
Risks assessment of Trading.com
If the different kinds of risks that a business entity faces are resolved in an effective
and efficient manner, the same results in the growth as well as the success of the organisation
(Bryson 2018). This perspective is considered to be crucial for the Trading.com Company
because the company is known to succeed at a high pace at a short span of time. This success
fosters the company to be facing a high amount of risks. Thus, the investigation of different
kind of risk that the company of Trading.com is facing at the current time is described as
follows.
Risks due to the growth
Any business entity since the old times of business has the apparent motive of
growing and expanding its business nature in terms of the financial as well as the other
desires and plans set up by the company (Bendell 2017). The company, in the concern of
earning higher criteria of growth, needs to manage altogether the element of risks that occurs
in the same and affects the paradigm of success. In this connection, the risk factors that are
analysed for the company of Trading.com concerning its growth factor are divided into the
following three scenarios.

5RISK MANAGEMENT
Pressure for performance
As analysed by the study that the company under discussion here is recognised to earn
a higher and sufficient amount of growth and success in its business procedures at a current
basis. The same is known to be achieved in the case that the services of investment and
mentoring offered by the company have created a high demand in the market. In this concern,
it was examined that the employees connected to the company were fostered to work with an
aggressive number of target in the initial of the business in the view of gaining a higher
number of clients for the business. Moreover, it was also investigated that the employees
were not paid according to a fixed amount of salary, and instead, they were paid on a
commission basis as per the number of courses each employee sold. This strategy did put the
business into a success level and growth as the employees worked to get the same and
achieve the commission. However, the same fostered the employees to carry unethical
practices of doing the business anyhow in order to earn monetary benefits. This led the
company to be at a higher risk of performance pressure and based on the risk calculator; the
company is known to be at an index of 2 (Refer Appendix 1).
Expansion Pressure
The high demand for the services offered by the company creates pressure on the
same to expand its business operations. The company is known to have a limited number of
resources, and thus the burden of managing the expansion creates on the company. However,
the company is recorded to have a number of around 100 employees, but the managing of
effective workflow becomes a challenge for the company. To recruit the new employees
becomes difficult for the company because finding the job level expertise for the concerned
company is not as easy as it seems (Grayson and Hodges 2017). Therefore, a pressure of
expansion is created on the company to fulfill the demand of the customers. The risk level

6RISK MANAGEMENT
index concerning the expansion pressure is counted to be 4 as per the calculator (Refer
Appendix 1).

7RISK MANAGEMENT
The inexperience of the employees
The services leveraged to the customers by any company is entirely related to the
success level of the same (Hopkins 2017). The way the company and the employees handle
the demands and the needs of the customer determines the experience of the employees. In
this connection, it was found that the new employees hired by the company were not much
experienced and thus the risk of the company regarding the same lies at the index of 4, which
states that it is at a higher level of risk (Refer Appendix 1).
Pressure due to Culture
The cultural aspects followed by a business entity defines the entire performance level
of an organisation (Gee 2018). Therefore, the practical and ineffective use of the same either
shapes or destroys the aspects of a business, respectively. The given report in this concern
determines the risk faced by Trading.com related to the category of culture.
Risks because of entrepreneurial risk-taking
As examined with the help of the study that the owner of the company Trading.com
has significantly built a competitive advantage for the business, this implies that the company
is also at a high amount of risk. This is because the competitive nature of the business is to
build on the base of the customers the company is able to bring in their business deals. In this
concern, the employees of the company are recorded to take unfair means of doing business.
Moreover, the regional managers connected to the company are the one who provides
information to the CEO of the same, and this leads to the attainment of prior knowledge for
the owner of the company. Thus, the company stays at a higher risk of entrepreneurship at an
index of 3 (Refer Appendix 1).

8RISK MANAGEMENT
The resistance of executive to lousy news
The success of a business entity highly depends on the extent of the reaction of the
business entity towards the bad news the same receives in its business considerations
(Upward and Jones 2016). The Trading.com Company is known to resist the level of bad
news and not convey the same to the required higher authorities. This leads to a higher
amount of risk for the company. It was investigated with the help of the studies that the
employees connected to the company are known to not convey the manner of service
demonstration to its senior in the company. Therefore, the company lies at the index of 2 in
this case that refers that the company is at a mediocre stage of risk in the concern of
resistance of lousy news (Refer Appendix 1).
Level of Internal Competition
The company under discussion is recorded to build its workplace culture on the basis
of the performance of the employee. The performance level of the employees is measured
according to the number of customers the employees get to the business and sells the course
to them. These criteria of measuring the performance level foster the employees to take unfair
means of completing and fulfilling the purpose of the business in order to stay at a higher
level of internal competition and gain the commission. This brings the risk level of the
company at the index of 2 (Refer Appendix 1).
Pressure due to the management of information
The information management of a business entity measures the business
communication level of the same (Unit 2015). In this connection, the risk of information
management associated with the company of Trading.com is examined below.

9RISK MANAGEMENT
Transaction complexity and velocity
Trading.com is known to leverage the free demo seminars to its clients and customers
in order to attract their attention towards the services of the company. As even discussed
earlier that the company does not take any legal implications in order to perform the same
and the employees in the concern of fulfilling the target practices unethical activities. This
affects the brand image of the company in an adverse manner. Thus, the level of risk index
concerning the transaction complexity and velocity is considered to be at 2 (Refer Appendix
1).
The gap in the diagnostic performance
As examined earlier in the report that the performance level in concern with the
employees of Trading.com is lonely measured on the fact of the number of clients the
employees gets for the business in a month, there lies a vast gap in the performance
diagnostic of the company. As was critically opined by Hartnell et al. (2016), the
performance assessment of one employee is effectively done when the same is measured and
compared to that of a similar level of employee, the organisation under discussion in the
report fails to diagnose the same. Thus, this gives rise to an adverse risk in the company to
lose its employees because of the culture of measuring and diagnosing the performance. This
brings the company to the risk index level of 3 (Refer Appendix 1).
Decentralised decision making
The company under discussion in the given report is highly considered to be a
decentralised company. The same can be proved by stating that the business has provided its
employees with complete freedom of getting the clients to the business. All that matters to the
company is to get clients and sell their business to them. The outcome received out of this
aspect is that the employees are not under legal obligations and strictness, and the same

10RISK MANAGEMENT
leverage them to take any means of doing the business and gain a performance level. Thus,
the score of the company, in this case, lies to be in the high index of 4 (Refer Appendix 1).
The Result
After the critical analysis of the risk assessment with the help of the Risk Exposure
Calculator, the sum of the risk level of Trading.com is determined to be 26 (Refer Appendix
1). Therefore, it can be stated that the company is at a stage of the cautious zone and the same
needs to make effective and efficient changes in its working plan and structure.
Conclusion
Hence, to bring to an ultimate outcome, the several risks that any business entity faces
are the inevitable part of the same. This is so because a business working in the competitive
market has to face the different known and unknown challenges and risks that come at a
precise and uncertain point in the business market. In this connection, the productive business
should plan up its strategic plans in such a way that it can eliminate and mitigate the risks that
come up in its working structure. With the help of the analysis of the report, it was also
examined that a business entity should leverage itself to the strictness of legal implications
and considerations because the same keeps its employees into strictness of maintaining
ethical practices while performing their jobs.

11RISK MANAGEMENT
References
Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R., 2018. Implanting
strategic management. Springer.
Bendell, J., 2017. Terms for Endearment: Business, NGOs and sustainable development.
Routledge.
Bryson, J.M., 2018. Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement. John Wiley & Sons.
Epstein, M.J., 2018. Making sustainability work: Best practices in managing and measuring
corporate social, environmental and economic impacts. Routledge.
Gee, J., 2018. The new work order. Routledge.
Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.
Hartnell, C.A., Kinicki, A.J., Lambert, L.S., Fugate, M. and Doyle Corner, P., 2016. Do
similarities or differences between CEO leadership and organizational culture have a more
positive effect on firm performance? A test of competing predictions. Journal of Applied
Psychology, 101(6), p.846.
Hopkins, M., 2017. CSR and international development. In CSR and Sustainability (pp. 88-
108). Routledge.
Unit, B., 2015. Corporate social responsibility.
Upward, A. and Jones, P., 2016. An ontology for strongly sustainable business models:
Defining an enterprise framework compatible with natural and social science. Organization &
Environment, 29(1), pp.97-123.