between countries can lead to resentment. Both are difficult ‘people problems’
Employee misconduct at
workplace is another lesser addressed risk. Employee misconduct would include
but not limited to, dishonesty, aggravated behavior towards fellow workers or
disrespecting organization rules. It can led to reputation risk and if not address
it may also which may also cause monitory loss to an enterprise.
Recent Study on ERM in Computer Industry
AON Plc. conducted a survey of computer organizations,
on the enterprise’s adaptation to the risk management program. The survey
report shows bigger organizations, having revenue higher than one billion US
dollars, continue to gain, grow and absorb the full advantage of having an
established risk management department in their enterprise. Although more that seventy-six
percent of the organizations have adopted this program, only about one percent showed
interest in hiring a fulltime CRO to manage the enterprise’s risk department.
We see in figure 1.2, work-force
strength of the various risk management departments covered in the survey. Significantly
positive results of enterprise risk management is seen as the force driving competition
and profit, making enterprises to adopt risk related planning as part of
enterprise’s strategic growth planning. We also see in figure 1.3 that thirty-three percent of computer firms indicated a
planned increase in risk management spend over next twelve months. However from
the report we also see a small fraction are cutting back on the risk budget.
PART II: AAPL, HPQ and Lenovo Risk Management Programs
Before going deep into discussing various risk
management programs that each of these organizations has put to practice, let’s
have a quick overview of the three companies which we have chosen for this
AAPL remains as the largest unchallenged computer manufacturing
enterprise, its market capitalization is 200 times bigger than its immediate competitor.
APPL was born in 1977 and its head-office is based out of Cupertino, California.
APPL’s business involves manufacturing, and selling personal computers (iMac), Mac-book,
iPhone, iPad, Apple Watch, networking devices like Airport, and media devices like
Home-pod to its customers. Its main customer base includes corporations,
educational institutions, non-profit institutions, and public and government institutions.
In 2017 AAPL’s global revenue reported is $229 billion1. AAPL
has a market capitalization of $870 billion and is today the largest publicly
traded enterprise. Figure 2.1 shows AAPL’s
sales by region globally.
1 2017 Annual