Risk management will help in identifying the risks posed to the Telstra’s assets assets (its durability, its resources and its property). There are generally two categories of assets: financial and nonfinancial. The barriers to changing organizational culture at Telstra are as follows:
Market risk associated with fluctuations in financial markets, and which are distinguished:
• Exchange risk resulting from the volatility of foreign exchange market. This can reduce profits and can make employees insecure.
• Interest rate risk resulting from volatility in interest rates. The employees might resist changing in organizational culture if they feel that the company is in a volatile position.
• Market risk (in restricted sense), which specifically refers to the volatility of the markets in financial instruments such as equities, debt, derivatives, etc. (Lock, 2007)
The barriers to change Reward systems are credit risk resulting from the possibility that one party to a financial contract does not assume its obligations. Changes in the reward system can make the employees feel de-motivated and feel that the company is facing credit risks based losses (Foegen, Solbach, Raak, (2007).
The barriers to changing the fear of loss of status, security, power are liquidity risk and financing, referring to the fact that one party to a financial contract cannot obtain the necessary liquidity to meet its obligations despite the availability of assets, which cannot sell quickly enough and at the right price-and will do so.