Risk Analysis for the Trading.com Company

This is in the sense that it enables the companies to look past their current successes and to identify any potential challenges that may arise. In this way, it helps them to revel into the success that comes from time to time as well as to prepare for any of the eventual consequences that are likely to cause harm to the organization. One of the means through which this can be achieved is through the use of the risk exposure calculator. This is a vital tool for any organization that will provide the varied pressure points that are available in any of the organizations and those which can lead to the presentation of risks. In this case, it helps the organization to determine whether its operations are in safety, caution or at the danger zone.

Therefore, there is the ability by the company management to make an effort in the identification and determination of the potential risks to the company. These are based on the pressure points listed below. A. Pressure points due to growth i) Pressure for performance. There is an indication that in three years, the founder of the trading. There is the experience of more inexperienced employees that is likely to affect the operations of the company. In particular, the regional managers feel as though the surge in the company growth is not thrilling. This ensured that there was a greater need for more consultants. This is turn has led the company to reduce their employment standards which causes a great risk towards the ability to increase productivity and to make the kind of profits that would help in the expansion and growth of the company (Garvey & Lansdowne, 1998).

This is because those who are getting employed have little to no experience in the sales area (Labodova, 2014). In addition, they are not concerned with the consultants who do not have the complex knowledge of the consultation process. Because of this, they seem not to be in touch with the data on performance since they are mainly focused on the unanticipated emergencies as well as the other forms of flare ups. They also focus on the course sales and the monthly reports although they also issue late reports which may be a big problem to the company as it is not able to assess the performance on sales and to make the necessary amendments as soon as it may be required (Jensen, 2002).

iii) Level of internal competition. The main internal competition that exists at the trading. This is in the way that there lacks a proper communication channel for being able to share any kind of information between them and the senior management. On the other hand, the senior management also has some presented gaps that arise from the aspect that they only create the new courses without any form of teamwork. They develop the new courses without autonomy which may cause a number of problems (Otway, H. , & von Winterfeldt, 1992). iii) Degree of decentralised decision making: The aspect of decision making at the trading. This should be done through the consolidation of the different departments. Gaps in diagnostic performance The different activities in the company should be unified from one department to another.

This means that there should be a proper flow in the way that they are performed from the creation of the courses to the sales activities to the customers and back (Andrews & Moss, 2002). Degree of decentralized decision making A proper manner of decision making should be established from the senior management to the consultants in a proper manner. It should not be authoritarian but flexible enough to allow for consultation and teamwork (Vose, 2008). Nonetheless, the presence of high scores on too many of the pressure points is a clear indication that the company is exposed to a higher level of risk. It is therefore under such circumstances that it becomes important to take up remedial actions fast. References Books Andrews, J.