MBA402: Trading.com Governance, Ethics & Sustainability Risk Report

This report provides a comprehensive risk assessment of Trading.com, a share investment course provider, focusing on governance, ethics, and sustainability. It examines pressure points related to growth (performance, expansion rate, employee inexperience), culture (risk-taking rewards, resistance to bad news, internal competition), and information management (transaction complexity, diagnostic gaps, decentralized decision-making). The report uses a risk exposure calculator to quantify these risks, revealing potential vulnerabilities in Trading.com's operations and suggesting areas for improvement. The analysis highlights the importance of structured information management, ethical leadership, and a balanced approach to growth to ensure the company's long-term sustainability and success. Desklib offers a variety of resources including similar solved assignments and past papers.

Governance, Ethics and Sustainability 1
Risk Assessment: Trading.com

Governance, Ethics and Sustainability 2
Table of Contents
Introduction......................................................................................................................................3
A. Pressure points due to growth..................................................................................................4
i) Pressure for performance......................................................................................................4
ii) Rate of expansion.................................................................................................................5
iii) Inexperience of key employees.........................................................................................5
B. Pressure points due to culture...................................................................................................6
i) Rewards for entrepreneurial risk taking...............................................................................6
ii) Executive resistance to bad news.........................................................................................6
iii) Level of internal competition............................................................................................7
C. Pressure points due to information management.....................................................................7
i) Transaction complexity and velocity....................................................................................9
ii) Gaps in diagnostic performance.........................................................................................10
iii) Degree of decentralized decision making............................................................................10
Conclusion.................................................................................................................................11
References..................................................................................................................................12

Governance, Ethics and Sustainability 3
Introduction
The modern edge of competition has given opportunities to the small and large scale business to
lead from the front with its efficient integration of requirements of market and competition as
well. In context to this, the risks are inherent and might occur due to the practices of
organization’s management and its internal parties and external parties as well. This report
emphasizes on the risk assessment in relation to the Trading. Com Company which is offering
the share investment courses so that the people can become highly successful in this rapidly
developing environment. The risk assessment report is developed in context of the different
aspects of business over which the governance, ethics and sustainability might be impacted. In
relation to this, the different aspects of risks as growth, culture and pressure because of the
information management are described with relation to the case study of Trading.com business.
Apart from this, the risk exposure calculator is also used to gauge the risk which is faced by the
Trading.com Company in relation to governance and sustainability manner.

Governance, Ethics and Sustainability 4
A. Pressure points due to growth
In this rapidly development environment, businesses need to focus on the several factors of
business growth, risk, contingencies, performance of competitors and market situation and so on.
In context to the Trading.Com company which is a medium size business in the Australian
market with the business locations at Sydney, Melbourne, Brisbane, and Adelaide so the pressure
point over the company can be replicated. The company faces the pressure from the different
aspects so the business needs to assess the internal and external environment of company for
challenging the risk in positive manner (Brauer et. al, 2016).
i) Pressure for performance
Performance is one of the major aspects to develop the company and its stake parties in this fast
developing environment so that the business can lead in the perspective industry. In order to
generate the performance, there are several risks which are faced during the improvement of
company performance. As per the analysis of Trading.com’s performance, it is analyzed that the
performance of company is increasing in the medium level competition as the share investing
course Company is established before three years and the business is on the way to become the
top company in guiding the people towards capitalizing the fund in share market (Glendon et. al,
2016). As the entrepreneur, JospeDrake has established the company and the performance of
business have tapped rapidly from last year and the CEO of company is focused over enlarging
the operations and expansion of business so the risk in the market might arise.
In context to this, if the Trading.com business is performing under pressure then several
challenges can challenge the leader of company to cater the higher performance along with the
satisfaction.

Governance, Ethics and Sustainability 5
ii) Rate of expansion
As per the review of business, it can also be stated that the Trading share business is developing
with the potent growth and the company is also engaging into the expansion of its business
operations at the new location in Australian market. The rate of expansion is higher so the
business can be influenced from the issues of governance and ethical consideration that can
affect the suitability advantages of company for long term (Ittner and Keusch, 2017). In addition
to the rate of expansion, business is also hiring the new staff that can also be challenge for the
leaders to manage and control the staff in same line operations. Induction for the staff is also risk
for the business as they belong from diverse business or market. The number of staff is over 100
and it is increasing so the lower capability of staff can influence the company in adverse manner.
iii) Inexperience of key employees
The trading business is hiring the new staff and the staff is not having the significant experience
in the field of sales and marketing of business than it can affect the performance of organization
in direct manner. At the same time, it is also critical for the business to higher the lower skilled
employees as the business is going to expand in the new market. From the risk assessment
exposure, the risk related to the share market can also be found as investing in share market
requires in-depth knowledge about the fluctuation of shares and equity market so the
inexperience might derive the adverse influence over the interested people in share market and
the inexperience people might not guide effectively to its customers so it might also be risky for
business due to ruining the brand image in the market (Massa et. al, 2017). For inexperience
people, it takes lots of time to learn new things and that directly affects the innovation creativity
in the business operations. The inexperience staff can perform with the miscreant behavior which
is resulted into the government actions and financial law suits or penalties.

Governance, Ethics and Sustainability 6
B. Pressure points due to culture
The organizational culture is one of the crucial elements of business which possess different
beliefs, values and shared assumptions as compare to the other business and the culture of
organization is unique from other market rivals. The culture of Trading.com is also an
opportunistic for the business to integrate with the new market trend make the customers
happy.
i) Rewards for entrepreneurial risk taking
From the evaluation of business risk, it is endowed that the organization might not survive
without taking risk because the risks lead to innovation and creativity for business to integrate in
the business. In relation to the Trading.com business, the culture of the organization is very
complex due to the ruthlessness behavior of the consultant for internal people (Green et. al,
2017). In context to this, it can also be stated the business can drive the innovation and creativity
in due to reward for risk taking. At the same time, the consultants are rewarded over their higher
performance in relation to the luxury holiday and expensive gifts. On the other hand, rewarding
the consultant over the risk taking might also be challenging to manage the risks and the new
courses are also developed by the Trading business but they are not successful that it is a risky
task for the business to reward the entrepreneurs for engaging into the risky job task.
ii) Executive resistance to bad news
From the development of risk exposure, it is determined that the executive are the senior team
manager and they can affect the internal business in significant manner. In context to the Trading
business, the culture of the organization is not following the corporate and appropriate strategy
so the business is facing with the bad news for business. On the other hand, if there is a bad news
for the company that is not hear by the executive of organization that is highly risky for business

Governance, Ethics and Sustainability 7
to lead and survive for long term (Wang and Zhang, 2017). In context to this, the executive
sometimes might not understand the language of the organizational consultant process that can
also create risk for the organization. On the other hand, managers need to develop the
collaborative culture so the performance of business can be improved in standard manner.
iii) Level of internal competition
This exposure of risk assessment is concerned to the determination of internal risk in the
organization that is also challenging for the organization as it creates adverse culture in this
rapidly development era. From the reference of case study of Trading.com, the internal culture is
very complex as there the people are more concerned towards the higher performance but the
level of customer satisfaction is also influenced (Deresky, 2017). At the same time, the internal
competition can also be a risk for the organization as it might derive the negative impact in
concern to not sharing the information to each other. The pressure of internal competition in the
Trading.com Company may influence the business assets, business reputation and the negative
impact of internal competition is to loosing the job by the staff of Company. In context to this,
the management can take the decisions in order to manage the internal competition by
considering the conduction of performance review. On the other hand, if the organization
promotes the higher performer than it might also influence the lower performer in concern to job
leave (Lasserre, 2017)? The risk from the customers and processes side can also arisen and these
competitive advantages can also for long term.
C. Pressure points due to information management
This pressure point is the last set of risk assessment exposure which is focused on the sharing of
information in the organizational business lines or within the same business. On the other hand,
information management is also a critical task for the business to protect the information from

Governance, Ethics and Sustainability 8
sharing in adverse manner as it can influence the market performance of business. In this
competitive market place, internal and external information are crucial for the business to safe so
take the decisions in productive manner (Volk et. al, 2017). In relation to the risk exhibit for the
Trading.com, it is determined that the business does not follow the structured or well defined
channel for spreading the information among the staff and senior management. Along with this,
if there is any bad news for the Company in spite of this, the information is not shared to the
responsible management team.
Risk exposure calculator

Governance, Ethics and Sustainability 9
+ + = =
+ + =
+ + =
=
i) Transaction complexity and velocity
The well shake of information among the staff of organization keeps them belonged towards the
organization that deal with management of information. In context to the business operations, the
Growth
Pressure for
performance 9
Rate of
expansion 4
Inexperience of
key employees 7
Rewards for
entrepreneurial
risk taking 9
Executive
resistance to bad
news 8
Level of internal
competition
11
Transaction
complexity and
velocity 18
Gaps in the
diagnostic
performance measure
8
The degree of
decentralized
decision-making 10
Culture
Information
Management
20 (Safety
zone)
28 (Caution
zone)
36 (Danger
zone)
84Total Score

Governance, Ethics and Sustainability 10
transaction velocity and the complexity is related to the diverse operations of the business in
order to carry out the business operations in effective manner (Aslam et. al, 2017). In addition to
this, the Trading.com business is also focuses on developing the new courses for investing in the
share market; the courses are established with the new structure that can affect the business
performance. It can also create the issue for the business while managing the new courses with
the higher frequency of failing of new course of the company due to logical structure and
information. On the other hand, the share market course and the monitoring are established with
the creativity but it has not worked properly and got failed.
ii) Gaps in diagnostic performance
This element of risk assessment exposure deals with the difference in between the evaluation of
performance as the Trading. Com is faces the challenges in its review the performance of its
employees in reliable manner. The performance is reviewed by the business to reward them but
the performance not evaluated for the other aspects as development, customer satisfaction and
quality work that might create risk for the business to manage the potential problems (Moran,
2014).
iii) Degree of decentralized decision making
As per the assessment of business case, it is also reviewed that the business is also facing the
problem in assigning the responsibilities and the decision making is also an issue for company.
In relation to this, Trading.com is also not following the proper structure of degree of
decentralization so that it can affect the business to align the decision making with the superior
or senior executive management (Salvioni and Gennari, 2017). The individual management of
company affects the business to reach at proper conclusion.

Governance, Ethics and Sustainability 11
Conclusion
On the basis of above analysis of risk assessment exposure, the Trading.com is facing the risk in
operating its business in the Australian market so the growth is the focal point of business and it
is indicated in the safe zone but the culture and information management is in critical situation so
the business should align the risk with strategic and immediate actions to improve the concurrent
risky positions of business.

Governance, Ethics and Sustainability 12
References
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Decision support system for risk assessment and management strategies in distributed software
development. IEEE Access, 5, pp. 20349-20373.
Brauer, M., Burnett, R., Cercy, K., Charlson, F.J. and Cohen, A.J., (2016) Global, regional, and
national comparative risk assessment of 79 behavioral, environmental and occupational, and
metabolic risks or clusters of risks, 1990–2015: a systematic analysis for the Global Burden of
Disease Study 2015, The Lancet, 388(10053), pp.1659-1724.
Deresky, H., (2017) International management: Managing across borders and cultures. India:
Pearson Education.
Glendon, A.I., Clarke, S. and McKenna, E., (2016) Human safety and risk management. USA:
CRC Press.
Green, B., Prince, D., Busby, J. and Hutchison, D., (2017) November. How Long is a Piece of
String:: Defining Key Phases andObserved Challenges within ICS Risk Assessment. In
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Ittner, C.D. and Keusch, T., (2017) Incorporating Risk Considerations into Planning and
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Education.
Massa, L., Tucci, C.L. and Afuah, A., (2017) A critical assessment of business model research.
Academy of Management Annals, 11(1), pp.73-104.

Governance, Ethics and Sustainability 13
Moran, A. (2014) AGILE RISK MANAGEMENT. GERMANY: SPRINGER BUSINESS AND
SCIENCE MEDIA.
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play the game: Strategic tools for managing corporate communications and creating value for
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