Assessment Information

Subject Code: MBA402
Subject Name: Governance, Ethics, and Sustainability
Assessment Title: Risk Assessment
Weighting: 30%
Total Marks: 30
Word Limit: 2,000 words
Due Date: Monday of Week 10, 11:55pm AEST
Assessment Description
You are required to read the following journal article article:
1. How Risky is Your Company? HBR. May-June 1999 https://hbr.org/1999/05/how-risky-is-your-company
Ensure you click on the ‘Read More’ link to view the Risk Exposure Calculator.
You are also required to read the case study below about fictional company Trading.com
You must then prepare a risk assessment report on Trading.com using the Risk Exposure Calculator and specifically address:
A. Pressure points due to growth
i) pressure for performance
ii) rate of expansion
iii) inexperience of key employees
B. Pressure points due to culture
i) rewards for entrepreneurial risk taking
ii) executive resistance to bad news
iii) level of internal competition
C. Pressure points due to information management
i) transaction complexity and velocity
ii) gaps in diagnostic performance
iii) degree of decentralised decision making
You will be required to include a minimum of 15 references in your Risk Assessment Report at least 5 of which must come from academic journals or textbooks.
COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969
This material has been reproduced and communicated to you by or on behalf of Kaplan Business School pursuant to Part VB of the Copyright Act 1968 (‘Act’). The material
in this communication may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection
under the Act. Kaplan Business School is a part of Kaplan Inc., a leading global provider of educational services. Kaplan Business School Pty Ltd ABN 86 098 181 947 is a registered higher education provider CRICOS Provider Code 02426B.

Assessment 2 Case Study – Trading.com
Background
Trading.com is a company that offers ordinary people share investment courses and ongoing mentoring services. The philosophy at Trading.com is that anybody can become a successful share investor if they have the right mind set, education, and support.
The company was established three years ago by successful share trader Jospe Drake. He has grown Trading.com into a medium sized business employing over 100 staff with offices in Sydney, Melbourne, Brisbane, and Adelaide. One year ago the company’s course sales increased dramatically and now its operations are expanding faster than the company’s capacity to hire and induct new staff. Jospe considers this to be a great problem to have and continues to hold the staff accountable for delivering strong financial performance.
But the company’s regional managers are not as thrilled as Jospe with the organisation’s surge in growth. The rapidly increasing need for more consultants has forced the company to lower their employment standards, hiring many new people with little to no previous experience in sales.
Business Model
Trading.com generates leads by advertising free introductory webinars that explain how share investment can be used as a vehicle for achieving an early retirement. Webinar attendees are contacted after the introductory webinar by a consultant who invites them to a free face-to-face consultation. At this meeting the consultant attempts to sell the potential new client a share investment course priced at $10,000.
The consultants are managed by regional managers in each city. The regional managers report to a senior management team that includes Jospe as the company CEO.
Consultants
Consultants are given aggressive sales targets that are set by the senior management team with little or no input from either the consultants themselves or the regional managers. Until recently, the consultants were paid solely on a commission basis, that is, they earned a percentage of the $10,000 course fee for each client that they signed up. Jospe recognised this remuneration structure was placing financial pressure on many consultants and so implemented a base salary of $30,000 per annum.
Each month the consultants are ranked by the regional managers according to their sales performance. The highest performing consultants receive special bonuses such as expensive gifts and luxury holidays. Because the consultants are pitted against each other like this, the company culture is highly competitive to the point of ruthlessness.
COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969
This material has been reproduced and communicated to you by or on behalf of Kaplan Business School pursuant to Part VB of the Copyright Act 1968 (‘Act’). The material
in this communication may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection
under the Act. Kaplan Business School is a part of Kaplan Inc., a leading global provider of educational services. Kaplan Business School Pty Ltd ABN 86 098 181 947 is a registered higher education provider CRICOS Provider Code 02426B.

Regional Managers
Regional managers act without a sense of the larger corporate strategy. There are no well-defined information channels for sharing information either between themselves or with senior management.
The regional managers have also surrounded themselves with “yes” men and women, and do not hear much, if any, bad news. They tend to leave the consultants alone because they do not understand the sometimes complex language of the consultation process. Managers have limited access to performance data and spend much of their time trying to resolve flare ups or unanticipated emergencies. From the information they can access they tend to focus solely on course sales figures and their monthly performance reports to senior management are often late or not submitted at all.
Senior Management Team
A high percentage of Trading.com’s business is based on new courses.
The courses are developed by Jospe and the senior management team: a creative, risk taking group of share investors. In this regard they do not act like a team but are given a great deal of autonomy and so develop course content independently of each other, only returning to the group once they have created something of substantial value.
There is an increasing frequency in the failure of new courses. Client Satisfaction
Client complaints are on the rise. Clients say they feel well respected and serviced by their consultants until they sign up for a course. At this point their consultant seems to lose interest in them and often fails to return their phone calls.
Risk Exposure Calculator
Be sure to include the Risk Exposure Calculator in your assessment answer.

COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969
This material has been reproduced and communicated to you by or on behalf of Kaplan Business School pursuant to Part VB of the Copyright Act 1968 (‘Act’). The material
in this communication may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection
under the Act. Kaplan Business School is a part of Kaplan Inc., a leading global provider of educational services. Kaplan Business School Pty Ltd ABN 86 098 181 947 is a registered higher education provider CRICOS Provider Code 02426B.

Assessment Marking Rubric
Criteria
F (Fail)
0%-49% P (Pass)
50%-64% CR (Credit)
65%-74% D (Distinction)
75% - 84% HD (High Distinction) 85%-100% Mark
Assessment Content (Subject Specific) OUT OF 24 MARKS

Pressure Points Growth
Pressure Points Culture

Risk Assessment Report does not adequately explain the kinds of pressure points due to growth or gauge the company’s level of pressure. The Risk Exposure Calculator is not used or is used in a manner that indicates its purpose has been misunderstood.
Pressure points due to culture are not adequately explained. The Risk Assessment Report does not gauge the company’s level of pressure. The Risk Exposure Calculator is not used or is used in a manner that indicates its purpose has been misunderstood.
Pressure points due to growth are sufficiently explained. The company’s level of pressure is gauged using the Risk Exposure Calculator but more detail is required to illustrate the link between the pressure point and the risk to the company.
Risk Assessment Report includes discussion of pressure points due to culture together with sufficient explanation. Company risk levels are gauged using the Risk Exposure Calculator but further commentary is necessary to demonstrate relationship between indicator and risk level.
Risk Assessment Report includes discussion of pressure points supported by logical explanation. The Risk Exposure Calculator is accurately used to demonstrate the level of risk to the company.
Cultural pressure points are logically explained and correctly identified. The company’s risk exposure to pressure points due to culture is also accurately identified using the Risk Exposure Calculator.
Pressure points due to growth are explained in detail. The company’s level of pressure is accurately gauged using the Risk Exposure Calculator with a further discussion of the overall zone of risk the company falls into.
Risk Assessment Report includes detailed explanation of pressure points due to culture. Company risk levels are gauged using the Risk Exposure Calculator with additional consideration of company’s overall zone of risk.

Risk Assessment Report includes comprehensive explanation of pressure points. The company’s level of pressure is accurately gauged using the Risk Exposure Calculator with a further discussion of the overall zone of risk the company falls into and measures the company could take to mitigate identified risks.
Pressure points due to culture are comprehensively explained. The Risk Assessment Report accurately gauges the company’s level of pressure. The Risk Exposure Calculator incorporates the overall zone of risk of the company and measures the company could take to mitigate identified risks.
/8
/8
Pressure Points
Information management
Risk Assessment Report does not adequately explain the kinds of pressure points due to information management or gauge the company’s level of pressure. The Risk Exposure Calculator is not used or is used in a manner that indicates its purpose has been misunderstood.

Pressure points due to information management are sufficiently explained. The company’s level of pressure is gauged using the Risk Exposure Calculator but more detail is required to illustrate the link between the pressure point and the risk to the company.
Risk Assessment Report includes discussion of pressure points supported by logical explanation. The Risk Exposure Calculator is accurately used to demonstrate the level of risk to the company.
Pressure points due to information management are explained in detail. The company’s level of pressure is accurately gauged using the Risk Exposure Calculator with a further discussion of the overall zone of risk the company falls into.

Risk Assessment Report includes comprehensive explanation of pressure points. The company’s level of pressure is accurately gauged using the Risk Exposure Calculator with a further discussion of the overall zone of risk the company falls into and measures the company could take to mitigate identified risks.
/8

COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969
This material has been reproduced and communicated to you by or on behalf of Kaplan Business School pursuant to Part VB of the Copyright Act 1968 (‘Act’). The material in this communication may be subject to copyright under the Act. Any further
reproduction or communication of this material by you may be the subject of copyright protection under the Act. Kaplan Business School is a part of Kaplan Inc., a leading global provider of educational services. Kaplan Business School Pty Ltd ABN 86 098 181 947 is a registered higher education provider CRICOS Provider Code 02426B.

Structure Format and Presentation OUT OF 6 MARKS

Answer clearly and logically presented
Serious lack of organization. Body paragraphs do not refer back to or relate to main arguments. Writing is formulaic, i.e. “in conclusion,” “another example is....”

Writing style could be more effective. Organization is hard to follow; there is little progression of ideas. Little or no transitions between paragraphs. Need to more effectively weave main arguments throughout and relate body paragraphs.
Paragraphs are generally well organized. Better transitions needed. The progression of ideas could be more thoughtful. Paragraphs relate back to main arguments to prove argument.
Ideas & arguments are well structured. Thoughtful progression of ideas and details. Sound transitions between paragraphs. Major arguments are effectively made.
Ideas & arguments are
effectively structured. Thoughtful progression of ideas and details. Excellent transitions between paragraphs. Concluding comments leave the reader thinking. Major arguments are effectively woven throughout everybody paragraph, with ideas always related back to main arguments.
/1
Appropriate theory and research used to answer question posed
Correct academic writing style used, including correct spelling, grammar and punctuation

The critique does not have appropriate structure and lacks direction. No significant observations made from appropriate theory and research. Poor writing and expression of arguments.
Needs more sentence variety. Little or no thought given to diction. Tone or language is conversational. Contains much informal language. Uses “I” or “you.” Contains many examples of unclear or awkward phrasing.

Reasonable critique which examines the relevant issues and makes reasonable observations made from appropriate theory and research. Reasonable writing and expression of arguments.
Needs more sentence variety. Attention needed with diction. Contains informal language or conversational tone, or uses “I” or “you.” Unclear or awkward sentence phrasing.

Good critique examines the relevant issues and makes good observations from appropriate theory and research. Good writing and expression of arguments.
Sentence variety is adequate. Tone is appropriate. Diction is clear, but could be more effective. Language is academic, and writing is clear and effective. Very little or no unclear or awkward phrasing.

A very good critique considered all the relevant issues and made important observations made from appropriate theory and research. Very good writing and expression of arguments.
Sentence variety is effective and good. Tone is appropriate and consistent. Diction/ vocabulary is appropriate and effective. Language is academic. Writing is clear, and concise.

Fully considered all the relevant issues and made significant observations made from appropriate theory and research. Excellent writing and expression of arguments.
Sentence variety is effective and sophisticated. Tone is appropriate and consistent. Diction/ vocabulary is sophisticated and effective. Language is academic. Writing is clear, concise, and strong.
/1
/1
Format of answer consistent with question requirements and KBS guidelines
In-text referencing and reference list follows Harvard style and consistent with KBS guidelines

No efforts made to follow submission and editing, spacing, etc requirements.
Inappropriate referencing. Not in-line with requirements of Harvard style and consistent with KBS guidelines.

Meets most editing, spacing, fonts, and other editing requirements. Some requirements not met.
Reasonably appropriate referencing, generally in-line with requirements of Harvard style and consistent with KBS guidelines.

Meets editing, spacing, fonts, and other editing requirements.
Good referencing, largely in-line with requirements of Harvard style and consistent with KBS guidelines.

Meets almost all editing, spacing, fonts, and other editing requirements.
Very good referencing, 100% in-line with requirements of Harvard style and consistent with KBS guidelines.

Meets all editing, spacing, fonts, and other editing requirements.
Excellent/appropriate referencing, 100% in-line with requirements of Harvard style and consistent with KBS guidelines.
/1
/1
Word count is within + / - 10% of requirement

Word count is within + / - more than 15% of requirement
Word count is within + / - 15% of requirement
Word count is within + / - 10% of requirement
Word count is within + / - 5% of requirement
Word count is within + / - 0% of requirement
/1

Comments: /24
/6
/30
COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969
This material has been reproduced and communicated to you by or on behalf of Kaplan Business School pursuant to Part VB of the Copyright Act 1968 (‘Act’). The material in this communication may be subject to copyright under the Act. Any further
reproduction or communication of this material by you may be the subject of copyright protection under the Act. Kaplan Business School is a part of Kaplan Inc., a leading global provider of educational services. Kaplan Business School Pty Ltd ABN 86 098 181 947 is a registered higher education provider CRICOS Provider Code 02426B.