Pressure points due to growth
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.
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).
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.
Pressure for performance
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.
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.
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.
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.
Rate of expansion
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.
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 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.
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.
Inexperience of key employees
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 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.
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 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.
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).
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.
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.
References
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