INT 113 RISK ASSESSMENT REPORT FOR TRADING.COM COMPANY
While businesses are performing well financially, it is highlighted in the given article that many
of them have a tendency to forget about risk (Simons 1999, p. 85). Particularly, a large deal of
optimism increases when a business or corporation is enjoying exponential expansion in its
market presence, popularity, high sales, and steady profitability. At this time, the organization is
often hiring people and expanding its operational footprint. According to the report, this
circumstance is what drives businesses to continue developing and seeking out new business
prospects. There is no concern at the moment about the danger problem. When managers are
focused on a task, they frequently overlook the coming risk in the workplace. But, given these
circumstances, businesses face looming risks that, if not managed properly and with awareness,
might undermine all of their achievements. The case study for this essay is the Trading.com
Corporation.
It is significant to remember that Trading.com is an organization that provides ongoing
mentoring and training services to regular people in order to provide shared investment courses
and business literacy. This business is founded on the firm conviction that anybody, regardless of
education level or lack thereof, has the capacity to become a serious and seasoned share investor
(Simons 1999, p. 85). Such people merely need the proper mentality and educational help.
Trading.com is now experiencing strong company performance, which might make it vulnerable
to the paradox of success theory. Its growing pressure is the first potential risk factor.
Trading.com has had tremendous and consistent growth over the last three years since its launch.
It has developed into the well-known, prosperous share broker of today. It presently has a staff
team of over 100 employees and is a medium-sized business. Also, the company's expansion is
demonstrated by the expansion of its office space, which is present in Sydney, Melbourne,
Brisbane, and Adelaide.
The risk assessment calculator gave a score of 5 for the first pressure point of performance. It
means that Trading.com's recent strong performance exposes it to significant risk. Due to a lack
of ability to maintain the present levels of growth, the current high rate of business growth has
enhanced performance while also exposing the organization to significant risks of bad
performance. It is critical to note that a strongly performing company typically draws a large
audience. In this situation, the management must establish even greater output goals for the staff
in order to raise performance levels (Simons, 1999, p. 85). At Trading.com, personnel who
achieve the objectives are well-compensated for their noteworthy efforts. Yet those who fall short
of the goals established are neither acknowledged or given rewards. As a result, there is pressure
to perform well and competitiveness inside the organization. Employers make every effort to
ensure employees meet the goals set out so they may take advantage of the performance reward
program (Simons, 1999, p. 86). In this situation, Trading.com employees might incur fines for
failing to meet the objectives.
In particular, the company's senior management sets ambitious sales objectives for the company's
consultants to meet. Typically, these goals are established without consulting with consultants or
area managers. The case study mentions that up until recently, the consultants were only
compensated on a commission basis. For each customer that Trading.com Business signed up, a
commission of $10,000 was deducted from the course price. Consultants underwent significant
performance pressure when their compensation was primarily based on the commission model
(Tuomela, 2005, p. 294). Performance pressure is always fraught with danger. The rate of
expansion is connected to the second pressure point. The Trading.com Business receives a 5 on
this point. The firm is under pressure to develop at a rapid rate due to the enormous growth it is
now experiencing, which is much above its capability. The case study makes notice of the fact
that Trading.com is growing more quickly than it can hire and onboard new employees. In fact,
the company's regional managers reportedly feel let down by the current development boom.
Trading.com now runs the danger of undermining its track record of consistent company
development. The corporation is currently abandoning the effective employment standards and
decreasing the requirements in order to hire many new employees who even do have the
qualifications.
The second pressure point is associated with the rate of expansion. On this point, The
Trading.com Company is given a 5. The company is under pressure to grow quickly because of
the massive growth it is now experiencing, which is much over its capacity. Trading.com is
expanding more fast than it can find and enroll new staff, as the case study points out. In fact, it
has been said that the present development boom has let down the company's regional
management. Trading.com now faces the risk of damaging its history of steady business growth.
In order to acquire a large number of new employees who actually do have the credentials, the
company is presently abandoning the effective employment standards and lowering the criteria.
Hence, 5+5+5 = 15 is the current overall growth pressure risk at Trading.com. It's important to
note that pressure points relating to the cultural issue exist within organizations. Rewards for
taking entrepreneurial risks are the pressure point in this category. It goes without saying that no
company can succeed in the long run without taking entrepreneurial risks (Westland 2016, p. 17).
The driving force behind innovation and creativity in a firm is this idea. Yet, it's crucial to use
caution and moderation at all times. Enormous innovation success brought about by taking big
risks as an entrepreneur may make people lose their sense of proportion and put them in grave
peril. They can decide to start gambling with the company's and its assets' resources. the desire to
invest in Deals that are very risky yet lucrative become overpowering (Power 2009, p. 849).
